McDonald's Stores to Reopen from the 12th... Operated by Local Business Operator

3 Months After Full Suspension on March 14
Local Franchise Operating... Likely to Change Business Name and More

[Image source=EPA Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] McDonald's stores in Russia, which ceased operations following the Ukraine crisis, have been acquired by a local franchise company and are expected to resume operations starting from the 12th. The company plans to reopen the stores under new brand names and menus, focusing on major cities such as Moscow.

According to Russia's TASS news agency on the 7th (local time), 'Alexander Govor,' a local franchise company that acquired the McDonald's stores after McDonald's suspended its operations in Russia last March, announced that it will resume operations of the McDonald's stores from the 12th. In a statement released that day, the company said, "From the 12th, we will reopen 15 stores in Moscow and nearby areas, and plan to gradually reopen other stores across Russia."

Earlier, on March 14th, McDonald's announced it would suspend operations of all its stores in Russia in response to Western sanctions following Russia's invasion of Ukraine. At the time of suspension, there were 850 McDonald's stores in Russia, holding a 7% share of the Russian food service market, making it the largest food service company in Russia.

Alexander Govor, which acquired the Russian stores after McDonald's withdrawal, is a franchise company that has operated over 20 stores nationwide, including Siberia, under a licensing agreement with McDonald's since 2015. The Russian government designated Alexander Govor as the acquiring company upon McDonald's exit and required it to retain employment for all staff previously employed by McDonald's locally for at least two years. Alexander Govor is expected to change the brand names and menus when reopening the stores.

McDonald's is unlikely to resume business in Russia until the war ends and Western sanctions against Russia are lifted. However, the Russian Federal Antimonopoly Service (FAS) recently stated that the local business sold by McDonald's includes an option to repurchase within 15 years, leaving open the possibility of business resumption after the war ends.

This content was produced with the assistance of AI translation services.