The world’s leading global foodservice retailer, McDonald’s have announced plans to ‘de-arch’ in Russia due to an unpredictable operating environment caused by the Ukraine war, leaving the country permanently after it temporarily closed its 850 outlets in March. The corporation has initiated a process to sell its Russian business.
“The fast-food giant has clearly recognised the impact that continued affiliations with Russia could have on the company. With 72 percent of consumer purchases globally driven by a brand’s ethics or support shown toward a social cause, McDonald’s has shown dedication to balance consumer expectations and their operational needs,” said Ramsey Baghdadi, Consumer Analyst at GlobalData.
McDonald’s new challenge will be to seek other markets to focus on, replacing Russian income.
“McDonald’s should take advantage of its presence in other markets such as Japan and France, where the company continues to grow rapidly, and expand its outlets in Asia and Europe,” Baghdadi said.
McDonald's restaurants in Ukraine remain closed, and the company continue to pay full salaries to its employees in the country.
McDonald’s is one of a growing number of corporations pulling out from Russia.
