McDonald’s is now closed in Russia, part of a wave of companies exiting the country after its invasion of Ukraine sparked sanctions from the West.
But a local alternative, Uncle Vanya, appears to be gearing up to take a bite of the Russian burger business — with familiar logo, the Washington Post has reported.
Last week, Vyacheslav Volodin, speaker of the lower house of parliament, the State Duma, had said Russian-branded restaurants should take over McDonald’s locations.
“They announced they are closing. Well, okay, close.
But tomorrow in those locations we should have not McDonald’s, but Uncle Vanya’s,” he said. “Jobs must be preserved and prices reduced.”
Officials have also said Russia can ignore patents owned by entities from countries that Moscow sees as hostile, while Russian President Vladimir Putin last week endorsed a plan to nationalize foreign-owned businesses that have left the country.
He said Russia must “introduce external management” on departing companies “and then transfer these enterprises to those who want to work.”
The moves pave the way for Uncle Vanya to fill the McDonald’s void in Russia.
The 1990 arrival of McDonald’s in the Soviet Union drew crowds as well as headlines, becoming a symbol of the West’s triumph over communism at the end of the Cold War. The Soviet Union collapsed in the following year. Since then, the American chain has gained popularity in Russia and Ukraine, both former members of the Soviet Union.
Nine percent of McDonald’s $23.2 billion in revenue last year came from the two countries.
The Chicago-headquartered company has said it will keep paying full salaries for employees in Ukraine, where McDonald’s had 108 stores before the war, as well as in Russia, where the company had nearly 850 stores and 62,000 workers.
When McDonald’s opened its doors in Moscow 32 years ago, executives expressed confidence they would stay in Soviet Russia, come what may, The Washington Post reported.
This time, McDonald’s leaders are less upbeat.
Chris Kempczinski, the chief executive of McDonald’s, told employees that it was impossible to predict when the company could reopen in Russia. “We are experiencing disruptions to our supply chain along with other operational impacts,” he said in an email to employees that was disclosed earlier this month.
-TheWashingtonpost