As the situation in Russia and Ukraine continues to be turbulent, many multinational companies have announced the suspension of business in Russia, and McDonald's, Starbucks, Coca-Cola, etc. have also joined the exit. According to CCTV news, on March 8, local time, the US restaurant chain McDonald's announced that it will temporarily close 850 stores in Russia, but will continue to pay employees' wages, and its McDonald Uncle House Charities (Ronald McDonald House Charities) will continue to operate.
According to reports, as soon as McDonald's announced the closure of stores, Russian customers wanted to buy McDonald's products before the store closed. Some customers began to line up in front of McDonald's stores, and others began hoarding burgers and the like. One customer allegedly even stuffed dozens of burgers in his refrigerator, and photos of the hoarded burgers went viral on Reddit: "McDonald's is permanently closed in Russia, which is my friend's private collection." The title of the post reads.
Netizens displayed hoarded burgers on the social news site Reddit
There are reportedly quite a few sellers trying to sell McDonald's food at high prices on Russian classifieds and auction platform Avito, from burgers and drinks to individual sauce packs. The New York Post noted that one seller even offered McDonald's cherry pie for 104,000 rubles (more than $770 for the contract).
High-priced resale of McDonald's food on Russian classifieds and auction platforms
McDonald's President and CEO Chris Kempchinsky said in an announcement letter to employees that "the conflict has brought unspeakable pain to innocent people" and that McDonald's had no choice but to close stores. "McDonald's will continue to assess the situation and determine whether additional measures need to be taken," Kempzynski said, "During this critical period, we cannot predict when the Russian restaurant will reopen." ”
Previous analysis pointed out that most of Russia's Starbucks, KFC and Pizza Hut stores are operated by franchisees, while the vast majority of McDonald's stores are directly operated by companies, so it is not easy for McDonald's to exit the Russian market directly. "But given that continuing to open stores would hit their share prices, they had no choice." Catherine Brooks, director of market analysis firm Minerva Analysis, said. McDonald's stock price has reportedly been falling since the Russian-Ukrainian conflict.
According to company documents, Revenue from McDonald's stores in Ukraine and Russia accounted for 9% of the company's 2021 revenue. Now that the exit has been announced, McDonald's will have to bear high financial costs. McDonald's chief financial officer Kevin Ozan said closing stores in Russia would cost the company $50 million a month. "We hope this is only temporary. We don't make decisions lightly, but they're the right thing to do for McDonald's global business and for local residents. ”
For McDonald's withdrawal from Russia, some experts said that financial support for the Russian restaurant industry should be strengthened, "In the catering industry, we have many large and small chain stores such as pancake shop 'Teremok', they should get special development funds, and then they can occupy the market that McDonald's once had." "Vice-Chairman of the Economic Committee of the Russian State Duma, Mikhail Jeryakin.
Red Star News reporter Ding Wen
Edited by Guo Yu
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