June 10 (Reuters) – Former McDonald’s Corp on Sunday marked a new dawn for fast food lovers in Russia. (MCDN) Restaurants are reopening under new branding and ownership more than three decades after the advent of the very popular Western fast food chain.
McDonald’s first opened in Russia in January 1990 at the same prime location in Moscow’s Pushkin Square, and will resume on Russia’s patriotic holiday celebrating the country’s independence.
When the Soviet Union collapsed in the early 1990s, McDonald’s came to defuse Cold War tensions and serve as a vehicle for millions of Russians to model American food and culture. The departure of the brand is now a powerful sign of how Russia and the West are turning to each other again.
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McDonald’s last month said it was selling its restaurants in Russia to one of its local licensees, Alexander Govor. The deal marks one of the highest trade departures since Russia sent tens of thousands of troops to Ukraine on February 24. read more
McDonald’s iconic ‘Golden Arches’ have been removed from sites in Moscow and St. Petersburg, where they will create a new logo featuring two fries and a hamburger interview on a green background. The reopening will initially cover 15 locations in and around Moscow.
The name of the new chain is a highly protected secret. The change of name of McDonald’s processor to ‘My Burger’ on Friday created some online excitement, but the chain’s press team said it was temporary, the RBC newspaper reported.
A motto on the home page of the app reads: “Some things are changing, but consistent work should be here.”
Russian media have cited leaked images of the new menu, announcing that they will rename dishes like Pilot-O-Fish as’ Fish Burger ‘and dishes like Chicken McKennets’ simply’ Knuckets’. Reuters could not verify the changes.
The problem
Govor said it plans to expand the new brand to 1,000 locations across the country and reopen all chain restaurants within two months. But there may be some downsides.
Peter Gabrielson, a professor of international marketing at the University of Wasa in Finland, said it takes decades to create a brand, and that this new release is critical to the brand’s future success.
“Opening day is important because it’s the first time consumers have really felt and touched the brand and what it means,” he said. “It’s important what the reaction will be and people will compare it to McDonald’s.”
McDonald’s, the world’s largest burger chain, now owns 84% of its nearly 850 restaurants across Russia and has raised $ 1.4 billion following the sale of GiD LLC to Govor, which previously operated 25 restaurants.
McDonald’s Russia’s Oleg Paroev said other owners would have the option of working under the new brand, but that the traditional McDonald’s brand would leave the country. McDonald’s has said it will retain its trademarks.
McDonald’s earned about 9% or $ 2 billion of its revenues from Russia and Ukraine last year. McDonald’s has the right to repurchase its Russian restaurants within 15 years, but many terms of sale to Govor are unclear.
The TASS news agency on Wednesday said that McDonald’s airports and train stations in Moscow and St. Petersburg will remain open until 2023, citing sources close to Rosinter Restaurants. (ROST.MM)Another owner.
“Rosinter has a unique contract under which the US corporation can not be deprived of ownership. They can operate peacefully,” the TASS source was quoted as saying.
Rosinter declined to comment. McDonald’s did not respond immediately.
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Reported by Reuters editing by Matt Schaffham and Gareth Jones
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