McDonald's Reopens in Russia? Relaunched as a Local Brand

Last Month, Withdrawal and Sale Announced Due to Ukraine Crisis... Russian Businessman Acquires

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyunjung] The Russian company that acquired the U.S. fast-food chain McDonald's, which withdrew from Russia, reopened about 10 stores in Moscow and nearby areas under a new brand on the 12th (local time).

According to local media, the new fast-food chain's CEO Oleg Paroyev introduced the new name of McDonald's as "Vkusno i Tochka" as 15 stores in Moscow and Moscow Oblast reopened that day. This means "delicious, no doubt" in Russian.

CEO Paroyev stated that 50 more stores will reopen on the 13th, and about 200 stores will reopen by the end of this month. However, due to supply disruptions of ingredients, not all items on the menu will be available for the time being. The new menu of Vkusno i Tochka is reported to be largely unchanged from the original McDonald's menu.

Alexander Govor has been operating over 20 franchise stores nationwide, including Siberia, under a license agreement with McDonald's since 2015. The Russian government designated Alexander Govor as the acquiring company when McDonald's withdrew and required that all employees employed by McDonald's locally be retained for at least two years.

McDonald's, which was a "symbol of capitalism" in Russia, first opened its first store in Pushkin Square in central Moscow in January 1990, before the collapse of the Soviet Union, and has since continuously expanded its business network. Until recently, McDonald's had about 850 stores in Russia and had grown to become the largest company in the Russian food service market with a market share of about 7%. However, on March 14, McDonald's announced it would suspend operations of all its stores in Russia due to Western sanctions following Russia's invasion of Ukraine. McDonald's was expected to record an accounting loss of up to $1.4 billion (approximately 1.792 trillion KRW).

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