McDonald’s to expand into remote regions of Siberia
22 Aug 2015
Despite western sanctions and the fact that last year, 62 per cent of Russians voted to shut down all McDonald's locations, McDonald's had entered into a franchise deal to expand into remote regions of Siberia.
In the wake of the annexation of Crimea by Russia and McDonald's subsequent decision to close all its locations in the region, McDonald's became the target of anti-US sentiment, which led to the surprise stringent inspection of at least half McDonald's locations in the country by a federal watchdog organisation.
Russia was also reported to be working on its own national answer to McDonald's, while in the meantime, Russians were asked to get in the habit of eating at home.
A Russian franchisee, GiD LLC, will open around 20 new McDonald's locations in the Novosibirsk, Tomsk, Kemerovo, and Altai regions in the next several years.
McDonald's currently operates over 500 locations in Russia, according to the latest data.
The 500 locations employ over 40,000 people. So far in the country, McDonald's had been developing its own restaurants with only one franchise agreement for a restaurant in St Petersburg's Pulkovo airport.
Russia's economy is in recession due to western sanctions over Ukraine as also an plunge the price of Russia's main export, oil.
Consumer spending had been falling, with the ruble plunging against the dollar, fueling double-digit inflation.
