Accordingly, on May 19, McDonald’s said it had reached an agreement to sell all of its stores in Russia to the person who runs 25 of its stores in Siberia.
Oil businessman Alexander Govor, who has been licensed by McDonald’s to 25 stores in Siberia through his company GiD LLC, has agreed to buy back all of its nearly 850 stores in Russia.
Mr. Govor is expected to operate the chain of stores under a new brand name, while retaining all 62,000 employees for at least two years, on mutually agreed terms.
It is known that the purchase and sale agreement is expected to be officially approved in the coming weeks if approved by the regulatory agencies. Specifically, GiD LLC will pay McDonald’s employees across Russia until the agreement is reached. agreement ends. Financial terms of the deal were not disclosed.
The deal puts an end to the American fast food company’s three-decade-long run in Russia since the first store opened in 1990.
Recently, the Russian Ministry of Industry and Trade promised to give the most innovative names to the new owners of the world famous fast food chain. In two hours, Russian social media users suggested more than 200 new names for McDonald’s.
As noted, the user-defined names that are most often repeated are with the word Mak: “MakDak, VkusMak, KvakMak, PutinMak, MakSmak, Nash Mak, MakRos, Makovetsky, Smak”,…
Earlier, on May 16, the American fast food company McDonald’s announced to withdraw from Russia and sell all of its business in this country.
According to McDonald’s explanation, the conflict in Ukraine and the unpredictable business environment show that continuing to operate in Russia is “no longer stable and suitable for this brand”.
In Russia, McDonald’s directly manages more than 80% of its branded restaurants, and this Eastern European market accounts for 9% and 3% of McDonald’s sales and operating profits, respectively.
In its latest quarterly financial report, McDonald’s said that closing restaurants in Russia cost them $127 million. Of that, nearly $27 million comes from staff costs, space rent and supplier payments, and about $100 million comes from food and other goods that have to be thrown away.
McDonald’s currently has 39,000 restaurants in more than 100 countries. This business has invested billions of dollars in business in Russia since January 1990. When McDonald’s opened its first restaurant in Moscow in 1990, Russians welcomed McDonald’s with as much enthusiasm as they welcomed the famous band The Beatles.
On the first day of sales, customers lined up outside despite the cold of February weather, they waited for 4 hours to enter the restaurant, about 30,000 people came to the restaurant on the opening day.
at Blogtuan.info – Source: Soha.vn – Read the original article here