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McDonald’s to Exit from Russia

corporate.mcdonalds.com

271–280 of 394 posts

Re: McDonald’s to Exit from Russia

#271

Earlier quoted context omitted.

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…

The cyrillic "Щ" (a W with a tail) is pronounced Shcha, I saw a shawarma restaurant in Russia using an upside-down McDonald's double arches, in the same yellow.

It's a common joke on countless shawarma/doner/gyros/etc. stands everywhere. Not original in the slightest.

https://i.pinimg.com/originals/bc/e1/9a/bce19a4e0ca810310c07...

Re: McDonald’s to Exit from Russia

#272

Can you sell the Russian business without violating the sanctions?

They won't be able to sell them at all. Putin has already said that any companies that leave Russian markets as a result of the current conflict will have all their assets nationalized. This is what happened to McDonalds in the Donbass -- they're still operating and called "DonMaks". The experience is extremely similar to a normal McDonalds. The only thing that is obviously different is the fries.

https://www.instagram.com/p/BLkrs5FBkct/ https://www.instagram.com/p/BSQzA_dhatu/ https://i.insider.com/58dd477677bb70f13a8b4c89?width=1190

Re: McDonald’s to Exit from Russia

#273

Can you sell the Russian business without violating the sanctions?

Russian social media are full of winking posts hinting that McDonald's will sell operations to a Russian company which it will still profit from "behind the scenes" (via offshore proxy or some other indirect way). They also hint that this will pave the way for other Western companies currently in limbo: split ownership between controllable proxy and Russian owner. And at the same time shout in Bloomberg how much you condemn Russian invasion to pacify Western public.

Can anyone confirm if it's possible? I hope it's Russian desinformation again, but I fear it's possible looking at how "well" Western "sanctions" work (Moscow feels great, ruble is much stronger than even pre-war).

Re: McDonald’s to Exit from Russia

#274

They never had an issue operating in Saudi Arabia despite the invasion of Yemen. They still maintain their Guantanamo Bay location. How is operating in Russia inconsistent with their values?

[flagged]

Not every comparison is pure whataboutism design to pull the discussion off-topic or complete off-track.

Perhaps the difference is so obvious to you that the question doesn't even need asking, but I think it is a valid question: what values does this invasion violate that the other situations do not, at least not to the extent that McD reacts by considering pulling out completely.

It would undeniably be whataboutism if it were McD being asked why they've done (or not done) something and they're point out something unrelated (or only tangentially related) that they have/not done or asking about what other bodies have/not done in that area of discussion. But as an outsider looking at McD, asking them to define their position more precisely, perhaps with reference to their position in what may be seen as similar circumstances, feels like a valid request rather than the fallacy of whataboutism.

Of course the question could be used purely to make McD look bad, particularly if the asker of the question as some axe to grind (against McD specifically, American corporates more generally, or big business even more globally), which flips the pendulum back in the direction of a logical error because the asker is not actually trying to gain perspective but is instead intending to impose that others take their perspective.

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FWIW I think I have a fairly solid idea of what the difference is. If you remove the moral aspect and just look at the circumstances from the robotic PoV of a business doing business: while the sanctions don't directly affect McD their impact does affect their ability to efficiently do business in Russia. Such sanctions don't exist in a manner that affects them in the same way in those other situations. Moving away from purely robotic business related points, this is happening in Eastern Europe not the East so it is both closer to home to those making decisions and is getting a lot more attention in Europe and the US (meaning that there is more push from their customer base in the west).

Re: McDonald’s to Exit from Russia

#275

Wow thatt's pretty rough. Just recently I saw some old footage of when Russia opened to the West and all those 90's kids in Russia going to the first Mc Donalds opening there. Then again McDonalds is a good example of a lot of things that are just plain wrong about western culture... so no loss for Russia I guess.

Regardless of what people think about McDonalds, this is a very symbolic move. People in the west remember those 90s scenes on TV of McDonalds opening in Russia, and it was symbolic of Russia opening up and a new prosperous relationship with the west. I would not be surprised if the US government nudged McDonalds to exit swiftly and publicly like this because the optics are very clear: Russia is going backwards.

Did McDonald's internationally do better over the last 20 years than it did in the US? Between 1990 and now, it seems to me that it lost a lot of cultural ground domestically, (and so did Pizza Hut, Gorbachev commercial and all). The few times I've gone into a McD's lately, every single time they've heavily pushed a "How did we do?" survey, as though they're a jilted lover wondering what went wrong. The optics in 1990 were as much for Americans as for Russians, but if it happened today, Americans wouldn't be impressed; they'd need something like opening a Chick-fil-A in Saudi Arabia.

Re: McDonald’s to Exit from Russia

#276
post #158
post #140

Can anybody explain why the rouble is at a five-year high? Or is there something in the intricacies of currency pairings that means this high isn't quite like other "highs"?

Because it's artificially held high by Russian central bank. That's why Russians are not allowed to buy USD or gold.

On the contrary, tax was dropped for metallic (physical) gold operations in order to provide an alternative to dollar for ordinary people (whatever that means). But, given the current prices and trade rules for metallic gold (keep the documents from purchase, don’t scratch ingot, sell to the same bank you bought it from, otherwise price will be lower), it’s not a great alternative.

Besides, price of 1g of gold was around 7500 RUB when tax was dropped, and around 4500 RUB now, so, well, happy investing.

Re: McDonald’s to Exit from Russia

#277
Renault did that last month. They sold their car factories and operations building and selling more than 500,000 cars a year in Russia at a very significant profit for one rouble. The Russian state company who bought it promised that it will sell back the company for the same price when the sanctions are lifted, BUT for the "enhancements" they could make until then...

Re: McDonald’s to Exit from Russia

#278
post #268

Earlier quoted context omitted.

The McDonald's on the Avenue des Champs-Élysées has triple cheeseburgers which aren't usually available even in the US, but it is certainly a bit "higher class" if you will, though that may be related to restaurants in general not being as frequented outside the US (only Italy comes close apparently). No free refills, though.

you guys must eat at McDonalds a real lot to be able to discern any difference, it's exactly the same food in slightly different shapes.

I disagree. McDonalds in the US is gross. I've had McDonalds in Europe 4-5 times and each of those were pretty OK.

(Why am I eating McDonalds in Europe? Sometimes when you get off a train and don't have your bearings yet in a place, something fast that's a known quantity is the way to go even if it pales to other options you'll find soon).

Re: McDonald’s to Exit from Russia

#280

Earlier quoted context omitted.

I'm not sure they really could easily continue to operate as normal. Their business units in Russia get paid by consumers in rubles, but due to the financial sanctions, they can no longer convert rubles to US dollars [1]. From the point of view of their non-Russian shareholders, this effectively means all that money is inaccessible. This would result in complications in reporting the revenue on their income statement…

Not sanctions, but Russian regulation. From your link: >The Bank of Russia more than doubled the benchmark interest rate to 20%, a 19-year high, on Feb. 28 and also imposed capital controls, including a ban on foreigners’ selling of securities. Nabiullina said decisions to suspend some regulatory requirements amounted to a capital boost for banks equivalent to 900 billion rubles ($8.7 billion). Putin banned all Russi…

Interest rate is already back to 14%[1]. Russian economy recovered super fast. Ruble is already stronger than before war (around 64 RUB for USD). Basically sanctions are a joke made for Biden to shout once before American public attention shifts to Amber Heard trial or some other spectacle of the day.

[1] https://www.reuters.com/business/finance/russian-central-ban...

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