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McDonald’s to Exit from Russia

corporate.mcdonalds.com

61–70 of 394 posts

Re: McDonald’s to Exit from Russia

#61
post #29

Something that has been bugging me for some time (genuine question, please forgive me lack of geopolitics/economy understanding) is this: Supposing we want to hurt Russian economy - how are we hurting it by stopping selling them licenses/branding/machines to make and sell burgers and fries? Are we not ripping them off money if we sell to them? As in: we gain, they lose? I understand we don't want to sell advanced tec…

Well, McDonalds, Inc. is not necessarily doing this to hurt the Russian economy. They are doing it to save money.

The war and the Western sanctions have limited their ability to operate restaurants in Russia. Because of this, they have shut down their restaurants while continuing to pay staff, leases on their buildings, etc. This means they have a constant outflow of cash to Russia which they want to stop. Shutting down the business stops the bleeding.

Perhaps the question is: why would public policy makers in the West want to impose such broad sanctions? Why not continue to allow Western companies to profit in Russia (i.e., "rip them off")? The answer is primarily that voluntary economic business transactions like this are generally win-win for both sides. Yes, McDonalds earns money selling branding, etc., but the Russians on the other side of the transaction also earn money through the use of the branding and so on. By cutting off Western companies' financial access to the Russian market, it does hurt the Western companies, but it also hurts the Russians because it deprives them of whatever benefits they were obtaining from the Western companies.

Re: McDonald’s to Exit from Russia

#62
post #29

Something that has been bugging me for some time (genuine question, please forgive me lack of geopolitics/economy understanding) is this: Supposing we want to hurt Russian economy - how are we hurting it by stopping selling them licenses/branding/machines to make and sell burgers and fries? Are we not ripping them off money if we sell to them? As in: we gain, they lose? I understand we don't want to sell advanced tec…

Sanctions don't work. The goal of sanctions is not to hurt Russia. The only thing sanctions accomplish is to give a feeling of self-righteousness.

Re: McDonald’s to Exit from Russia

#64
post #56

Earlier quoted context omitted.

Quoted post unavailable.

> How is Russia going to not be belligerent if we are even thinking about letting Sweden and Finland in NATO? That's easy: by choosing to not be belligerent to countries exercising their sovereign autonomy. "You're making me hit you!" No.

Ask cubans about exercising sovereignity against the freest world, as said in my main message, we need to give up moral superiority and understand other countries needs

Re: McDonald’s to Exit from Russia

#66
post #40
post #29

Something that has been bugging me for some time (genuine question, please forgive me lack of geopolitics/economy understanding) is this: Supposing we want to hurt Russian economy - how are we hurting it by stopping selling them licenses/branding/machines to make and sell burgers and fries? Are we not ripping them off money if we sell to them? As in: we gain, they lose? I understand we don't want to sell advanced tec…

For a globally recognizable brand like McDonald's, the move to leave the country has a symbolic meaning. It sends a message to the Russian people that something is deeply wrong with the direction taken by their government. Of course, some Russians will interpret the move differently, but that cannot be avoided.

No post body was provided.

Re: McDonald’s to Exit from Russia

#68

> The Company intends to initiate the process of “de-Arching” those restaurants, which entails no longer using the McDonald’s name, logo, branding, and menu, though the Company will continue to retain its trademarks in Russia. Obviously they'd want to keep the trademark, otherwise they have no way to prevent those sold restaurants from "re-Arching" after the "de-Arching" :)

EDIT: This turned out to be fake - sorry. Leaving the rest of the comment here for posterity. A Russian restaurant chain "Uncle Vanya" has already filed for a trademark that looks very "inspired" by the McD arches. It is basically rotated 90 degrees and a line is added, so it looks like a "B" - which is like the letter "V" in Vanya in the cyrillic alphabet. Source: https://twitter.com/JoshGerben/status/15040821259680…

Afaik that's a one month old hoax. Isnt it?
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