What’s in a name? Russia rebrands McDonald’s restaurant chain | Food News


US fast-food big McDonald’s introduced in Could that it will go away Russia following Moscow’s invasion of Ukraine.

America fast-food big McDonald’s introduced on Could 16 that it will exit the Russian market within the wake of Moscow’s invasion of Ukraine.

On Sunday, McDonald’s eating places reopened their doorways in Moscow as soon as once more underneath new Russian possession and a brand new identify, “Vkusno-i tochka”, which interprets as “Tasty and that’s it”.

Right here’s what we all know:

The brand new brand:

The well-known Golden Arches have been taken down and changed with a brand new brand, resembling the letter “M” and comprised of symbols that symbolize two fries and a hamburger towards a inexperienced background.

Chief Govt Oleg Paroev, McDonald’s former Russian head, mentioned the brand new firm had settled on the brand new identify – a intently guarded secret – solely the day earlier than the launch on Sunday.

There was some hypothesis on social media about how finest to translate the brand new identify into English. “Tasty and that’s it” was broadly adopted, though one other suggestion was: “Tasty. Full cease or interval”.

Branches:

“Vkusno-i tochka” reopened on Sunday in Pushkin Sq. in what was McDonald’s first restaurant in Soviet Moscow in 1990, when it bought as many as 30,000 burgers, however the queue exterior the restaurant was a lot smaller than it was three a long time in the past.

The chain will preserve its previous McDonald’s inside however will take away any hint of its former identify.

Initially, 15 rebranded eating places will open in and across the Russian capital and one other 200 eating places by the top of June and all 850 by the top of summer time, executives mentioned.

The brand new proprietor mentioned as much as 7 billion roubles ($121m) might be invested this 12 months within the enterprise, which employs greater than 50,000 individuals.

Menu:

McDonald’s flagship Huge Mac and different burgers and desserts similar to McFlurry are lacking, however different well-liked objects are on a smaller menu promoting at barely decrease costs.

A double cheeseburger was going for 129 roubles ($2.24) in contrast with roughly 160 roubles underneath McDonald’s and a fish burger for 169 roubles, in contrast with about 190 beforehand.

Paroev mentioned the chain would preserve costs “reasonably priced”. They’d probably rise as a result of inflation, however not greater than the costs of rivals, he mentioned.

Most substances come from inside Russia, however some objects weren’t instantly accessible as a result of logistical difficulties and since some suppliers have left Russia. For example, the corporate must discover a new smooth drinks provider after Coca-Cola suspended enterprise in Russia over the struggle in Ukraine.

Possession:

Siberian businessman Alexander Govor has taken over the franchise operation by his agency GiD LLC. He has been a McDonald’s licensee since 2015 and had helped the chain develop into distant Siberia, the place he operated 25 eating places.

McDonald’s may have an choice to purchase its eating places in Russia again inside 15 years, Russian authorities have mentioned.

Govor informed reporters on Sunday that the worth he paid was “far decrease than market value” and had been a “symbolic” determine. The US chain booked a $1.4bn cost for the deal. McDonald’s didn’t reply to a request for touch upon the worth.

Russia and Ukraine accounted for about 9 p.c, or $2bn, of McDonald’s income final 12 months.

Administration/workers:

Till the takeover, Paroev had labored for McDonald’s for seven years, together with as chief monetary officer of the Russian enterprise for six 1/2 years till November 2021, in response to his LinkedIn profile.

He was appointed Russia McDonald’s CEO in February, weeks earlier than Moscow despatched tens of hundreds of troops into Ukraine on February 24.

Govor will retain the chain’s tens of hundreds of workers for a minimum of two years, the US firm mentioned.

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