Some restaurants formerly owned by the world’s largest fast-food chain McDonald’s in Russia has reopened on Sunday with new branding and ownership.
The iconic golden arches logo of McDonald’s has been taken down at restaurants across the country, and the sites have reopened as ‘Vkusno i Tochka’, which roughly translates as ‘Just Tasty’.
The reopening of more than a dozen of the former McDonald’s restaurants were accompanied by a marketing blitz aimed at convincing Russians that the new chain’s burgers are as good as the American version.
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A new logo has also been unveiled – a circle and two diagonal lines on a green background, resembling the letter ‘M’. According to the new owners, it represents a hamburger and two French fries.
Among the first to reopen will be the flagship site in Moscow’s Pushkin Square, where McDonald’s launched its first Soviet branch in January 1990, symbolically marking the end of the Cold War for many Russians. Early Sunday, the site included the slogan ‘The name changes, the love remains’.
“We will maintain the quality and level of service that guests have become accustomed to over the years,” said Alexander Govor, a Siberian businessman and the new owner, at a press conference ahead of the reopenings Sunday.
Moscow Mayor Sergei Sobyanin had previously said that the rebranded chain would keep the same menu, staff and standards. It will continue to use “our chickens, patties, bread, tomatoes and cucumbers,” he said, according to Russian state media. “We just need to add it all up the right way, package it, and sell it.”
McDonald’s holds symbolic importance in Russia. It was among the first Western brands to open its doors amid the crumbling of the Soviet Union, offering Russians their first taste of Western consumerism. In 1990, about 30,000 people lined up for the opening at Pushkin Square. Thirty-two years later, the company is now a trailblazer again in Russia, as one of the first Western brands to transfer its operations to local ownership.
According to the new owners, the restaurants will fully reopen across the country within two months, and the total number of locations will be expanded from the current 850 to 1,000.
McDonald’s Corp. and other Western companies have pulled out of Russia in the wake of Moscow’s invasion of Ukraine. They have cited a number of reasons for doing so, including the difficulty of doing business in Russia amid the sanctions.
McDonald’s has the right to buy back its restaurants in Russia within 15 years. Also, media reports say that a small number of McDonald’s restaurants will be able to continue working in Russia in their original form, as one of the company’s licensees, Rosinter Restaurants, has a an agreement with the company that allows it to retain the franchise until 2023.
McDonald’s Corp. and other Western companies have pulled out of Russia in the wake of Moscow’s invasion of Ukraine. They have cited a number of reasons for doing so, including the difficulty of doing business in Russia amid the sanctions.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur
