McDonald’s restaurants reopened in Moscow on Sunday under new Russian ownership and a new name, “Vkusno & tochka,” which translates to “Tasty and that’s it.”
Here’s what we know: LOGO:
The famous Golden Arches have been removed and replaced with a new logo, resembling an “M” letter, consisting of two fries and a burger patty on a green background. Chief Executive Oleg Paroev said the new company only decided on the new name – a closely guarded secret – the day before the launch.
There has been speculation on social media about how best to translate the new name into English. “Tasty and that’s it” was widely adopted, although another suggestion was: “Tasty”. Complete stop.’ BRANCHES:
‘Vkusno & tochka’ reopened on Sunday in Pushkin Square in what was the first McDonald’s restaurant in Soviet Moscow in 1990, when it sold up to 30,000 burgers, but the queue outside the restaurant was much longer smaller than three decades ago. The chain will keep its old McDonald’s interior but remove all traces of its old name.
Initially, 15 renowned restaurants will open in and around the capital and another 200 restaurants by the end of June and 850 by the end of the summer, the leaders announced on Sunday. The new owner said up to 7 billion rubles ($126 million) would be invested this year in the company, which employs more than 50,000 people.
MENU: Missing McDonald’s flagship Big Mac and other burgers and desserts such as McFlurry, but other popular items are on a smaller menu sold at slightly lower prices.
A double cheeseburger cost 129 rubles ($2.31) compared to around 160 under McDonald’s and a fish burger for 169 rubles, compared to around 190 previously. Paroev said the chain would maintain “affordable” prices. They would likely rise due to inflation, but no more than its competitors, he said.
Most of the ingredients are sourced from Russia, but some items were not immediately available due to logistical difficulties and because some suppliers moved out of Russia. For example, he needs to find a new supplier of soft drinks after Coca Cola has suspended operations there. OWNERSHIP:
Siberian businessman Alexander Govor took over the franchise operation through his company GiD LLC. He has held a McDonald’s license since 2015 and helped the chain expand into remote Siberia, where he operated 25 restaurants. McDonald’s will have an option to buy its restaurants in Russia within 15 years, Russian authorities have announced.
Govor told reporters on Sunday that the price he paid was “well below market price” and had been a “token” figure. The American chain registered a charge of 1.4 billion dollars for the agreement. McDonald’s did not respond to a request for comment on the price. Russia and Ukraine accounted for about 9%, or $2 billion, of McDonald’s revenue last year.
MANAGEMENT/STAFF: Former McDonald’s Russian boss Paroev runs the business. Until the takeover, he had worked for McDonald’s for seven years, including as the Russian company’s chief financial officer for 6½ years until November 2021, according to his LinkedIn profile.
He was named CEO of McDonald’s in Russia in February, weeks before Moscow sent tens of thousands of troops to Ukraine on February 24. Govor will retain the chain’s tens of thousands of employees for at least two years, the US company said.
($1 = 55.7500 rubles)
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