Employment International

McDonald Leaves Russia After 30 Years


After serving Russia for 30 years, McDonald permanently leaves Russia, closing all its 850 restaurants in the country in March that had 62,000 employees. The decision is said to be caused by “the humanitarian crisis” in Ukraine and an “unpredictable operating environment” that McDonald’s said had made doing business in Russia “no longer tenable.”

The franchise was one of the first “big name-western retail companies to jump into the Russian market, but now U.S. fast-food giant McDonald’s has said it will permanently leave Russia and sell its business there after more than 30 years of operations.” Its first McDonald’s restaurant was opened during 1990 in Moscow, “and came to represent an easing of Cold War tensions.”

It seems as though the relationship McDonald brought the country was that of peace, with it now breaking the relationship three decades later. Repots show that McDonald is looking to sell its “entire portfolio” of Russian restaurants to a local buyer. But this will be done through “de-Arching” the restaurants, meaning the buyer  will not be making use of the McDonald’s name, logo, menu, or branding. “We’re exceptionally proud of the 62,000 employees who work in our restaurants,” said CEO Chris Kempczinski in a statement.

“Their dedication and loyalty to McDonald’s make today’s announcement extremely difficult,” he added. “However, we have a commitment to our global community and must remain steadfast in our values. And our commitment to our values means that we can no longer keep the Arches shining there.”

The Russian war on Ukraine resulted in an “unprecedented Western sanctions against Moscow, sparking an exodus of foreign corporations including H&M, Starbucks and Ikea.”

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