Factbox-What’s in a name? Rebranded McDonald’s outlets open in Russia
(Reuters) -McDonald’s eating places opened their doorways in Moscow as soon as once more on Sunday underneath new Russian possession and a brand new identify, “Vkusno & tochka”, which interprets as “Tasty and that is it”.
This is what we all know:
LOGO:
The well-known Golden Arches have been taken down and changed with a brand new emblem, resembling a letter “M”, comprising two fries and a hamburger patty in opposition to a inexperienced background.
Chief govt Oleg Paroev stated the brand new firm had settled on the brand new identify – a carefully guarded secret – solely the day earlier than the launch.
There was some hypothesis on social media about how finest to translate the brand new identify into English. “Tasty and that is it” was broadly adopted, though one other suggestion was: ‘Tasty. Full cease.’
BRANCHES:
“Vkusno & tochka” reopened on Sunday in Pushkin Sq. in what was McDonald’s first restaurant in Soviet Moscow in 1990, when it offered as many as 30,000 burgers, however the queue exterior the restaurant was a lot smaller than three many years in the past.
The chain will maintain its outdated McDonald’s inside however will take away any hint of its former identify.
Initially 15 rebranded eating places will open in and across the capital and one other 200 eating places by end-June and all 850 by the tip of summer time, executives stated on Sunday.
The brand new proprietor stated as much as 7 billion roubles ($126 million) shall be invested this yr within the enterprise, which employs greater than 50,000 folks.
MENU:
McDonald’s flagship Large Mac and different burgers and desserts reminiscent of McFlurry are lacking, however different fashionable objects are on a smaller menu promoting at barely decrease costs.
A double cheeseburger was going for 129 roubles ($2.31) in contrast with roughly 160 underneath McDonald’s and a fish burger for 169 roubles, in contrast with about 190 beforehand.
Paroev stated the chain would maintain costs “inexpensive”. They might seemingly rise as a result of inflation, however not larger than its rivals, he stated.
Most elements come from inside Russia, however some objects weren’t instantly obtainable as a result of logistical difficulties and since some suppliers have left Russia. As an illustration, it must discover a new mushy drinks provider after Coca Cola suspended enterprise there.
OWNERSHIP:
Siberian businessman Alexander Govor has taken over the franchise operation by his agency GiD LLC. He has been a McDonald’s licensee since 2015 and had helped the chain broaden into distant Siberia, the place he operated 25 eating places.
McDonald’s may have an possibility to purchase its eating places in Russia again inside 15 years, Russian authorities have stated.
Govor informed reporters on Sunday the worth he paid was “far decrease than market worth” and had been a “symbolic” determine. The U.S. chain booked a $1.4 billion cost for the deal. McDonald’s didn’t reply to a request for touch upon the worth.
Russia and Ukraine accounted for about 9%, or $2 billion, of McDonald’s income final yr.
MANAGEMENT/STAFF:
McDonald’s former Russian head Paroev is operating the enterprise. Till the takeover, he had labored for McDonald’s for seven years, together with as chief monetary officer of the Russian enterprise for 6-1/2 years till November 2021, in line with his LinkedIn profile.
He was appointed Russia McDonald’s CEO in February, weeks earlier than Moscow despatched tens of 1000’s of troops into Ukraine on Feb. 24.
Govor will retain the chain’s tens of 1000’s of staff for no less than two years, the U.S. firm stated.
($1 = 55.7500 roubles)
(Reporting by ReutersCompiled by Josephine MasonEditing by Pravin Char and Frances Kerry)
