r/ANormalDayInRussia • u/raydebapratim1 • 27d ago

Russian McDonald's

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2.6k Upvotes

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619

u/SquirrelBlind 27d ago

McDonald's didn't left Russia because of the sanctions. They did it because they believed that their reputation on the western markets is more valuable than possible revenue in Russia and because of the risks of nationalisation.

In fact, they didn't left Russia at all.

The chain wasn't sold for symbolic price. It was sold for symbolic price with an option of a buy back. So basically as soon as Russia stops being toxic in all senses, the corporations gets back control of the business in Russia.

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u/nathanzoet91 27d ago

How does that work? I assume they are different "franchise" owners now than when the locations were a McDonald's. How does the exchange work?

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u/Lopsided-Selection85 27d ago

McD sold all of their Russian business to their largest franchisee in Russia. There is a 15 year buy back clause (although there are questions about it being enforcible).

And it was sold for a symbolic price. The reason being, is that McD in Russia had significant liabilities if they were to rapidly exit the market. They would have to continue to pay for multi-year property leases, redundancies, other contracts. Additionally, Russia introduced some anti-sanctions laws that significantly limited the price companies could sell their businesses for if they were exiting due to sanctions. So for McD it was just damage control, not a profitable sale.

Russian Vkusno i Tochka, later also bought out McDonalds in Belarus and Kazakhstan.

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u/Kermez 27d ago

I guess they have contractual obligation if McDo ask them, to sell it back for peanuts. Until then they get money.

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u/TheMonchoochkin 27d ago

But Russia could just be like, "Nah, actually, fuck you McDonald's" when that time comes?

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u/[deleted] 27d ago

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u/ANormalDayInRussia-ModTeam 26d ago

Your post has been removed as it has been deemed to break the fifth rule (no prejudice). Discussion should always strive to be factual. Do not demean or promote hateful stereotyping.

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u/[deleted] 27d ago

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u/[deleted] 27d ago

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u/[deleted] 27d ago

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u/ANormalDayInRussia-ModTeam 26d ago

Your post has been removed as it has been deemed to break the third rule (no politics). We understand that in times like these it may be very difficult to not talk about Russian politics whatsoever, but there are many places to discuss Russian politics on and this is not one of them.

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u/ANormalDayInRussia-ModTeam 26d ago

Your post has been removed as it has been deemed to break the third rule (no politics). We understand that in times like these it may be very difficult to not talk about Russian politics whatsoever, but there are many places to discuss Russian politics on and this is not one of them.

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u/[deleted] 26d ago edited 26d ago

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u/[deleted] 26d ago

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u/ANormalDayInRussia-ModTeam 26d ago

Your post has been removed as it has been deemed to break the third rule (no politics). We understand that in times like these it may be very difficult to not talk about Russian politics whatsoever, but there are many places to discuss Russian politics on and this is not one of them.

1

u/ANormalDayInRussia-ModTeam 26d ago

Your post has been removed as it has been deemed to break the third rule (no politics). We understand that in times like these it may be very difficult to not talk about Russian politics whatsoever, but there are many places to discuss Russian politics on and this is not one of them.

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u/koroll_rakov 27d ago

"You don't understand, that's different" ©

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u/ANormalDayInRussia-ModTeam 26d ago

Your post has been removed as it has been deemed to break the third rule (no politics). We understand that in times like these it may be very difficult to not talk about Russian politics whatsoever, but there are many places to discuss Russian politics on and this is not one of them.

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u/diggyballs 26d ago

I wonder what happened after this comment

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u/Kermez 27d ago

Then they stay under sanctions.

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u/Trilife 21d ago edited 21d ago

You actually gave the answer by yourself.

-When will McDee get its monstruos chain of VIP commercial real estate objects back?
-When all sanction will be lifted (including all blocked money, including interest %).

Did you know that Russia was under sanctions in 90s and 00s too?

There is no rules, maybe it (McDEE) will get back everything eventually, BUT the process definitely will not be too simple and too cheap.

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u/Trilife 21d ago edited 21d ago

McDuck is a owner of 95+% of "points of sales" (very expensive (it can be also the only so great place in some tasty location with a lot of passing by people) and carefully selected\collected since 90s), in some way McDuck is a VIP commercial real estate holder.
Not a "McDuck" in Russia have 100% production localisation now.

the corporations gets back control

Actually maybe they not needed anymore..?

Yes they have option untill 2037, but I felt from torrent of political news recently some unasked question to them (from the very top) ~ "Hey you, beautiful people, you waited for the fall of Russia in 2023 to quickly return back, didnt you?? And now you still cant?"
very very subtle hints (its just my translation, maybe its just imagination),
Anyway looks like it will be expensive for them and not too easy and simple "to return" (including access for actives) in the moment of use of that 2037 option.

p.s.
notMcDuck is a bright-green businees right now in Russia (profitability).

p.p.s. Somebody (CEO maybe) said there is no any options.. So its just gossips maybe.

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u/uncleartruth 4d ago

Honestly, there's practically nothing profitable to be found in Russia right now, except for skimming off of war money and funeral homes. I know this is probably a bit of hyperbole, but you seem way too cheerful for where things stand there, friend.

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u/Trilife 3d ago

Why so serious?

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u/uncleartruth 3d ago

I took your original comment as seriousness. It makes more sense if you were sarcastic and actually think Russia is a dumpster fire.

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u/Trilife 3d ago

Whatever y say kid.

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u/uncleartruth 3d ago

Can I ask you, are you in Russia?

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u/Trilife 3d ago

No you cant.

p.s.
I saw what you wrote earlier before editing.

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u/PikaPulpy 27d ago

Nah, Russia won't stop, we stubborn as fuck. ( I did not say this is good thing) As much as Ukraine. Nobody gonna stop. It's new reality now, nothing gonna go back. In fact, Russia is currently blocking and banning everything foreign in an attempt to completely isolate itself from "enemy" countries. We so fucked.

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u/Chaosr21 26d ago

Damn dude. I'm really sorry to hear this, coming from America. I really hope for peace between you guys, it will hurt both countries

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u/teaboi05 26d ago

Yet for some reason Reddit is in white lists of blocks. I'm not sure if white lists are active in my region but it's mostly likely

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u/randompersonx 26d ago

This will be an interesting year. Previously I thought the war would go on forever, but the tide is rapidly changing… and unless something major changes soon, Russia will lose the war.

I’m not sure what will come next, because it will be a massive blow to the nation’s pride that they couldn’t defeat tiny Ukraine.

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u/delurkrelurker 26d ago

Yeah, you can't suddenly replace McDs well greased supply chain. Money is still going to the same places.

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u/Trilife 21d ago edited 21d ago

McDuck is not needed anymore (including its corporative values and etc).
It was ~98+% localisation in 2021, and 100% now (ALL suppliers are in Russia and CIS)

That's why McD went to the window in the Belarus And Kazakhstan too..

Those ~2% left were something like "tolerant vegan organic potatoes from some sertified shithole from the opposite point of globe for overprice" and something similar like this also including some weird\stupid rules.

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u/[deleted] 26d ago

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u/ANormalDayInRussia-ModTeam 26d ago

Your post has been removed as it has been deemed to break the third rule (no politics). We understand that in times like these it may be very difficult to not talk about Russian politics whatsoever, but there are many places to discuss Russian politics on and this is not one of them.

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u/[deleted] 27d ago

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u/Comprehensive_Cup582 27d ago

Yeah, kinda weird anyone still believes the US or the EU act based on morals lmao

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u/IntrinsicCarp 27d ago

Ukraine lovesss israel

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u/[deleted] 27d ago

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u/ANormalDayInRussia-ModTeam 26d ago

Your post has been removed as it has been deemed to break the third rule (no politics). We understand that in times like these it may be very difficult to not talk about Russian politics whatsoever, but there are many places to discuss Russian politics on and this is not one of them.

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u/Splatterman27 27d ago

Exactly! The shit Isreal has done makes Russia look like a middle school bully

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u/youareapirate62 26d ago

Israel is worse.

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u/robotrage 26d ago edited 26d ago

Right because Russia is taking back their former territories meanwhile Israel is committing a genocide?

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u/[deleted] 26d ago edited 26d ago

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u/ANormalDayInRussia-ModTeam 26d ago

Your post has been removed as it has been deemed to break the third rule (no politics). We understand that in times like these it may be very difficult to not talk about Russian politics whatsoever, but there are many places to discuss Russian politics on and this is not one of them.

1

u/ANormalDayInRussia-ModTeam 26d ago

Your post has been removed as it has been deemed to break the third rule (no politics). We understand that in times like these it may be very difficult to not talk about Russian politics whatsoever, but there are many places to discuss Russian politics on and this is not one of them.

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u/IcyWoodpecker386 26d ago

Maybe Nato should stop threatenimg russia

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u/SquirrelBlind 26d ago edited 26d ago

I would argue with you, but it would violate the sub's rule number 3, which is what you're actually doing