That's so McDuck
11 March 2022 0 comments
Expert: McDonald's with closed doors will not last more than three months
While the closure is definitely temporary.
The situation is unclear. On the one hand, the agency "Moscow" publishes photos of some closed points in the city. On the other hand, the contact center of the Russian McDonald's says that Russian restaurants have not received an order to close and continue to work today, contrary to yesterday's statement by Chief executive Officer Chris Kempczynski. No one can name the dates. According to Business FM, the flagship restaurant on Pushkinskaya Street, which has recently been completely renovated, also continues to operate in the usual mode.
If the application still remains in force and the restaurants are closed, then in this mode McDonald's is unlikely to last more than three months, according to the ombudsman in the field of the Moscow restaurant business Sergey Mironov. Otherwise it will be unprofitable.
"McDonald's says that it will close the doors, Inditex did something similar (Zara, Massimo Dutti, Bershka, Pull & Bear, etc.). Most Western brands have notified shopping centers of technical closure: lease agreements have not been terminated, employees have not been fired. But this is a big expense for companies, because in addition to rent, you will have to pay heavy fines for unopened doors. If companies incur such expenses, then they mean that they will remain," RIA Novosti quotes Mironov.
McDonald's visitors will probably go to other fast food chains (but not to restaurants) — the same Burger King or KFC. The owner of the latter, Yum! Brands, yesterday announced that it was stopping investments and development in Russia, but nothing has been heard about the closure of outlets.
Mironov claims that both Burger King and KFC, most likely, will not close. "Most of KFC is a franchise. No franchise agreement provides for closure after the top team. With all the desire it will be impossible. Burger King has not announced anything yet, and I very much doubt that he will leave too. Our Russian Burger King has Russian roots, it's not McDonald's, which has Western roots. It was bought by Russians. If a decision is made to close, then, most likely, it will cause resistance from operators," the expert says.
By the way, there are reports from the regions that McDonald's restaurants are not closing, because it is also a franchise. The official website of the company says that the franchise in Russia is really managed by three firms: LLC "Razvitie ROST", LLC "GUIDE" and LLC SPP. However, they have about a hundred restaurants on their account — in the regions and Moscow airports. Most of the outlets, including almost all Moscow ones, are operated by a company controlled by the international corporation McDonald's. So technically nothing can prevent their closure.
While the closure is definitely temporary.
The situation is unclear. On the one hand, the agency "Moscow" publishes photos of some closed points in the city. On the other hand, the contact center of the Russian McDonald's says that Russian restaurants have not received an order to close and continue to work today, contrary to yesterday's statement by Chief executive Officer Chris Kempczynski. No one can name the dates. According to Business FM, the flagship restaurant on Pushkinskaya Street, which has recently been completely renovated, also continues to operate in the usual mode.
If the application still remains in force and the restaurants are closed, then in this mode McDonald's is unlikely to last more than three months, according to the ombudsman in the field of the Moscow restaurant business Sergey Mironov. Otherwise it will be unprofitable.
"McDonald's says that it will close the doors, Inditex did something similar (Zara, Massimo Dutti, Bershka, Pull & Bear, etc.). Most Western brands have notified shopping centers of technical closure: lease agreements have not been terminated, employees have not been fired. But this is a big expense for companies, because in addition to rent, you will have to pay heavy fines for unopened doors. If companies incur such expenses, then they mean that they will remain," RIA Novosti quotes Mironov.
McDonald's visitors will probably go to other fast food chains (but not to restaurants) — the same Burger King or KFC. The owner of the latter, Yum! Brands, yesterday announced that it was stopping investments and development in Russia, but nothing has been heard about the closure of outlets.
Mironov claims that both Burger King and KFC, most likely, will not close. "Most of KFC is a franchise. No franchise agreement provides for closure after the top team. With all the desire it will be impossible. Burger King has not announced anything yet, and I very much doubt that he will leave too. Our Russian Burger King has Russian roots, it's not McDonald's, which has Western roots. It was bought by Russians. If a decision is made to close, then, most likely, it will cause resistance from operators," the expert says.
By the way, there are reports from the regions that McDonald's restaurants are not closing, because it is also a franchise. The official website of the company says that the franchise in Russia is really managed by three firms: LLC "Razvitie ROST", LLC "GUIDE" and LLC SPP. However, they have about a hundred restaurants on their account — in the regions and Moscow airports. Most of the outlets, including almost all Moscow ones, are operated by a company controlled by the international corporation McDonald's. So technically nothing can prevent their closure.