American fast-food giant McDonalds will sell its Russian business and exit the market completely, The New York Times reported Monday, citing an internal corporate message it obtained.The company aims to sell its business to a Russia-based buyer but the restaurants will no longer be able to use the McDonalds arch logo or brand name.This was not an easy decision, nor will it be simple to execute given the size of our business and the current challenges of operating in Russia.
But the end state is clear, McDonalds CEO Chris Kempczinski wrote in the message.Alongside other major food chains such as Starbucks and KFC, McDonalds temporarily closed all 847 restaurants and suspended business operations in Russia in the wake of Moscows invasion of Ukraine.
Most Western food retailers have thus far been hesitant to exit Russia completely, citing difficulties of re-entering the market and concerns for the welfare of local employees.McDonalds vowed to pay salaries to its 65,000 Russian employees until after the sale, and to ensure their employment continues with the business future owner.The rebranded chain could resume its work across the country as early as June of this year, according to information published by the state-run TASS news agency.McDonalds opened its first Russian restaurant in Moscow in January 1990, symbolizing the Soviet Unions liberalization and integration into the global capitalist market.In his message, Kempczinski called that moment one of the companys proudest and most exciting milestones.It is impossible to ignore the humanitarian crisis caused by the war in Ukraine.
And it is impossible to imagine the Golden Arches representing the same hope and promise that led us to enter the Russian market 32 years ago, said Kempczinski.