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After three shining decades, the golden arches in Russia will darken.
In March, McDonald’s, along with dozens of other US franchises, decided to temporarily close his stores after the Russian invasion of Ukraine. Two months later, the brand has decided to withdraw after a strong 30-year relationship with Russia.
Company stated: that the “humanitarian crisis caused by the war in Ukraine, and the precipitating unpredictable business environment, have led McDonald’s to conclude that the company’s survival in Russia is no longer tenable, nor is it consistent with McDonald’s values. “
McDonald’s has begun selling its restaurants in Russia – all 850 – and said it plans to “go through the process”de-arching” the locations, as the shop windows can no longer use the fast food giant’s name and branding.
The fast food giant entered Russia 1990 while the soon-to-fall Soviet Union opened its doors to Western brands, and the recent decision to leave carries an inverted symbolism.
McDonald’s president and chief executive Chris Kempczinski said the decision was “extremely difficult” but “our commitment to our values means we can no longer let the bows shine there.”
Until the sale is completed, McDonald’s said it will stay that way Pay the 62,000 employees in Russia and that they will have a job with one of the potential buyers.
The bold decision may mark the beginning of other American brands to follow McDonald’s lead. Still it can be more complicated for other franchises that don’t directly own many of their storefronts.
Related: Here’s Why Burger King Continues To Operate In Russia