End of an era: McDonald’s strikes deal to sell Russia restaurants | Business and Economy News

The Chicago burger big stated its present licensee Alexander Govor, who operates 25 eating places in Siberia, has agreed to purchase McDonald’s 850 Russian eating places and function them beneath a brand new title.

McDonald’s has begun the sale of its eating places in Russia 30 years after the burger chain turned a strong image of the easing of Chilly Warfare tensions between the US and Soviet Union.

The Chicago burger big stated its present licensee Alexander Govor, who operates 25 eating places in Siberia, has agreed to purchase McDonald’s 850 Russian eating places and function them beneath a brand new title. McDonald’s didn’t disclose the phrases of the sale.

McDonald’s was among the many first Western shopper manufacturers to enter Russia in 1990. Its giant, gleaming retailer close to Pushkin Sq. in Moscow signalled a brand new period of optimism within the wake of the Chilly Warfare shortly after the autumn of the Berlin Wall.

The corporate shuttered its Russian areas in March due to Russia’s invasion of Ukraine, a call the corporate stated value it $55m per 30 days. On Monday, McDonald’s introduced it could promote these shops and depart Russia.

It’s the primary time the corporate has “de-arched”, or exited, a significant market. It plans to begin eradicating golden arches and different symbols and indicators with the corporate’s title. McDonald’s stated it’ll additionally hold its logos in Russia and take steps to implement them if obligatory.

The sale introduced Thursday is topic to regulatory approval and is anticipated to shut inside just a few weeks, McDonald’s stated.

Govor, a licensee since 2015, has additionally agreed to retain McDonald’s 62,000 Russian staff for at the least two years on equal phrases. Govor additionally agreed to pay the salaries of McDonald’s company staff till the sale closes.

McDonald’s left open the likelihood that it might someday return to Russia.

“It’s not possible to foretell what the longer term might maintain, however I select to finish my message with the identical spirit that introduced McDonald’s to Russia within the first place: hope,” CEO Chris Kempczinski wrote Monday in a letter to staff. “Thus, allow us to not finish by saying, ‘goodbye.’ As a substitute, allow us to say as they do in Russian: Till we meet once more.”