McDonald鈥檚 has begun the sale of its restaurants in Russia 30 years after the burger chain became a powerful symbol of easing of Cold War tensions between the United States and Soviet Union.
The Chicago burger giant said its existing licensee Alexander Govor, who operates 25 restaurants in Siberia, has agreed to buy McDonald鈥檚 850 Russian restaurants and operate them under a new name. McDonald鈥檚 did not disclose the terms of the sale.
McDonald's was among the first Western consumer brands to enter Russia in 1990. Its large, gleaming store near Pushkin Square in Moscow signaled a new era of optimism in the wake of the Cold War shortly after the fall of the Berlin Wall.
The company shuttered its Russian locations in March because of Russia's invasion of Ukraine, a decision the company said cost it $55 million per month. On Monday, McDonald's announced it would sell those stores and leave Russia.
It鈥檚 the first time the company has 鈥渄e-arched,鈥� or exited a major market. It plans to start removing golden arches and other symbols and signs with the company鈥檚 name. McDonald鈥檚 said it will also will keep its trademarks in Russia and take steps to enforce them if necessary.
The sale announced Thursday is subject to regulatory approval and is expected to close within a few weeks, McDonald鈥檚 said.
Govor, a licensee since 2015, has also agreed to retain McDonald鈥檚 62,000 Russian employees for at least two years on equivalent terms. Govor also agreed to pay the salaries of McDonald鈥檚 corporate employees until the sale closes.
McDonald's left open the possibility that it could one day return to Russia.
鈥淚t鈥檚 impossible to predict what the future may hold, but I choose to end my message with the same spirit that brought McDonald鈥檚 to Russia in the first place: hope,鈥� CEO Chris Kempczinski wrote Monday in a letter to employees. 鈥淭hus, let us not end by saying, 鈥榞oodbye.鈥� Instead, let us say as they do in Russian: Until we meet again.鈥�
Dee-ann Durbin, The Associated Press
