It’s official: The golden arches are going dark in Russia, BBC reported.
McDonald’s is permanently exiting Russia after more than three decades of business in the country.
It makes the company one of the largest global brands to exit Russia.
In March, McDonald’s temporarily closed its 850 locations. Now, it has begun selling its restaurants.
McDonald’s said that the decision is due to the humanitarian crisis and “unpredictable operating environment” that has been created by the Russian war in Ukraine.
The first McDonald’s restaurant in Russia was opened in Moscow in 1990. It symbolized a thaw in Cold War tensions. One year later, the Soviet Union collapsed, and Russia opened up its economy to businesses in the West.
More than 30 years later, however, it is one of a growing number of businesses that are pulling out of the country due to Russia invading Ukraine.
McDonald’s chief executive Chris Kempczinski said in a message to staff and suppliers that this is a “complicated issue that’s without precedent and with profound consequences.”
But he said that it is impossible to ignore the humanitarian crisis that the war has caused. He also said that it has become “impossible to imagine the Golden Arches representing the same hope and promise that led us to enter the Russian market 32 years ago.”
All sites will be sold to a local buyer, and the company will begin “de-arching” the restaurants across the country. This will include physically removing its name, branding, and menus. The company however will continue to keep its trademarks in Russia.
McDonald’s said that its priorities include seeking to ensure that the 62,000 people employed by the company in Russia continue to be paid until a sale is completed and that they have future employment with any potential buyer of the chain.
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