Europe

Goodbye Golden Arch: Rebranded McDonald’s to Reopen in Russia

Sunday marks a new dawn for Russian fast food lovers McDonald’s Corp MCD.N More than 30 years after the arrival of the very popular Western fast food chain, the restaurant has reopened under a new brand and ownership.

The renewal begins on Russia Day, a patriotic holiday celebrating the independence of the country, at the same flagship store in Moscow’s Pushkin Square. McDonald’s It first opened in Russia in January 1990.

When the Soviet Union collapsed in the early 1990s McDonald’s It embodies the relief of Cold War tensions and has become a means for millions of Russians to sample American food and culture. The withdrawal of the brand is a strong symbol of Russia and the West turning their backs on each other again.

McDonald’s Last month, it announced that it would sell its Russian restaurant to one of its local licensees, Alexander Govor. The deal has been one of the hottest business departures since Russia sent tens of thousands of troops to Ukraine on February 24th. Read the full text

McDonald’s The iconic “Golden Arch” has been removed on the sites of Moscow and St. Petersburg. There, we give way to a new logo consisting of two french fries and a hamburger patty on a green background. The reopening will initially cover 15 locations in Moscow and its surrounding areas.

head wind

Govor says it plans to expand the unnamed new brand to 1,000 locations across the country and reopen all restaurants in the chain within two months. But there may be headwinds.

Building the brand will take decades, said Peter Gabrielsson, a professor of international marketing at the University of Vaasa in Finland. New launches are critical to the future success of the brand.

“The first day is important because it’s the first time consumers can actually feel, touch and see the brand and what it means,” he said. “What happens to the reaction is important, and obviously people do it. McDonald’s.. “

McDonald’sThe world’s largest burger chain owns 84% ​​of nearly 850 restaurants across Russia, up to $ 1.4 billion after GiD LLC sold it to Govor, which previously ran 25 restaurants. It cost money.

Oleg Paloev McDonald’s Russia said other franchisees have the option to work under the new brand, but traditional McDonald’s The brand leaves the country. McDonald’s It states that it holds the trademark.

McDonald’s Last year, it generated about 9% of its revenues from Russia and Ukraine, or $ 2 billion. McDonald’s You have the right to buy back a Russian restaurant within 15 years, but many of the terms of sale to Govor remain unknown.

TASS said on Wednesday McDonald’s Citing sources near the Rosinter restaurant, it remained open as usual at the airports and train stations in Moscow and St. Petersburg until 2023. ROST.MMAnother franchisee.

“Rosinter has its own contract that American companies can’t steal franchises. They can work peacefully,” TASS quoted sources.

Rosinter declined to comment. McDonald’s Did not respond immediately.

(Reuters)

https://in-cyprus.philenews.com/goodbye-golden-arches-rebranded-mcdonalds-to-reopen-in-russia/ Goodbye Golden Arch: Rebranded McDonald’s to Reopen in Russia

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