Withdrawal from Russia: McDonald’s finds buyers for 850 branches

He already runs two dozen McDonald’s branches in Siberia: A Russian businessman is buying all 850 branches in Russia from the US company. Because of the war in Ukraine, the group is withdrawing.

The US quick-service restaurant chain McDonald’s has found a buyer for its restaurants in Russia. The Chicago-based company said Alexander Gowor, who operates 25 restaurants in Siberia as a licensee, has agreed to buy the 850 McDonald’s outlets and continue operating under a different name. The company did not disclose the sale price.

“Not in line with McDonald’s values”

McDonald’s said on Monday it would leave Russia after the attack on Ukraine. “The humanitarian crisis triggered by the war in Ukraine and the unpredictable business environment have led McDonald’s to conclude that continued ownership of the Russia business is no longer tenable.” It is also not in line with “McDonald’s values”.

The sales agreement still has to be approved by the authorities. A deal is expected within a few weeks, McDonald’s said.

To date, McDonald’s has operated more than 80 percent of fast-food restaurants bearing its name in Russia itself. Business in Russia has contributed nine percent of group sales to date.

Employees should initially continue to be employed

Gowor has been a licensee since 2015 and has also agreed to continue employing the 62,000 Russian employees for at least two years under the same conditions as McDonald’s. He also agreed to continue paying the salaries of McDonald’s employees until the sale is complete.

McDonald’s opened its first fast food restaurant in Moscow during Soviet times, sending a strong signal that Cold War tensions between the United States and the Soviet Union were easing.

In March, the company said it was closing its stores in Russia for the time being. Other US food companies such as Starbucks, Pepsi and Coca-Cola have already suspended or closed their stores in Russia due to Western sanctions.