Foreign brands in Russia

However, the Russian culinary business market is now welcoming many new names right on the old land. The story of McDonald’s is an example.

After 2 months of suspending operations, the world’s largest fast food company McDonald’s has announced its complete withdrawal from the Russian market. But chain restaurants in the country will still be reopened, with a new brand.

“Leave but stay” – The McDonald’s empire has gone after more than 30 years with Russia. The departure was as remarkable as it was when the iconic American brand first set foot in the Soviet Union in January 1990. Leaving, which means McDonald’s accepts a loss of up to 1.2 – 1.4 billion USD.

Stay – are 62,000 Russian employees with nearly 850 stores across the country. According to Russian media, the new owner of the McDonald’s restaurant chain in Russia is businessman Alexander Govor, a franchise partner and has managed 25 restaurants in Siberia since 2015. The deal value was not disclosed. but the Russian businessman will keep the existing store network, staff, familiar menu and quick service standards.

Foreign brands in Russia - Leaving and staying - Photo 1.

The McDonald’s empire has gone after more than 30 years with Russia. (Photo: RTE)

Not only McDonald’s, many multinational food companies such as KFC, Burger King, Starbucks… have also left. Right now, many Russian businesses are announcing the establishment of new brands and fast food chains.

According to the information and analysis agency INFOLine, the catering business in Russia in 2021 has returned to pre-pandemic levels with revenue of 2.65 trillion rubles (nearly 40 billion USD). The new crisis of 2022 has caused this market to drop 10 to 50% in March. Supplier prices have increased by 70%, but insiders still do not give up. Some have decided to participate in the “fill in the blanks” race of foreign food chains.

According to INFOLine experts, the departure of multinational companies can reduce the market for the catering industry in Russia by no more than 10%, and domestic entrepreneurs will partially meet this demand.

The Russian press posed the question: Restaurant market in 2022 – loss or gain? The answer is not easy right now. Many people think that, irreplaceable, but will adapt.

According to Nhat Linh

You are reading the article Foreign brands in Russia
at – Source: – Read the original article here

Back to top button