One of the world’s leading food service brands, Mcdonald’s has found a new buyer for its Russian business after the war in Ukraine made it quit the country, stopping 30 years of operation.
McDonald’s said Alexander Govor, who currently operates 25 McDonald’s restaurants in Siberia, will take over the firm’s restaurants and staff, operating them under a new brand.
Although the sale price was not revealed, it warned investors it would take a more than $1bn hit from the exit.
Announcing plans for the sale earlier in the week, the chief executive officer of McDonald’s, Chris Kempczinski said the decision was “extremely difficult.
“However, we have a commitment to our global community and must remain steadfast in our values. And our commitment to our values means that we can no longer keep the arches shining there,” Kempczinski said.
Russia’s Industry and Trade Minister Denis Manturov said the deal was the result of a “long and difficult” negotiation process and the government would provide Mr Govor with all the necessary assistance to set up operations.
“The terms provide for McDonald’s 62,000 staff in Russia to be retained for at least two years, with their existing pay and Mr Govor will pay the salaries of corporate staff in Russia until the deal is completed.
Mr Govor has been a licensee of McDonald’s since 2015. He is also co-founder of a refining company, Neftekhim Service, and a board member of another firm that owns the Park Inn hotel and private clinics in Siberia.
McDonald’s suspended operations at the restaurants it owned in Russia in March, citing the “humanitarian crisis” and “unpredictable operating environment” caused by the Ukraine war.
The move led to an outrage among Russian politicians and prompted threats the business would be seized.
McDonald’s will retain its trademark in the country, it said, while the restaurants will be stripped of their menu, logo and other branding.
