Big Macs and McFlurrys have been shut down in Russia after the chain pulled out of the country over its actions in Ukraine – but the new company Vkusno & tochka, or “Tasty and that’s it” is said to have broken the record
Photo: MAXIM SHIPENKOV/EPA-EFE/REX/Shutterstock)
McDonald’s, renamed in Russia, sold 120,000 burgers on its opening day after the chain pulled out of the country due to its Ukraine business.
The iconic Golden Arches have been pulled from storefronts across multiple locations in and around Moscow after more than three decades of operation in Russia.
The arrival of the fast food chain to Russia in the early 1990s when the Soviet Union collapsed came to embody Cold War tensions and was a way for millions of Russians to savor American food and culture.
But now, Big Macs and McFlurrys are off the list entirely — with the reopening of new company Vkusno & tochka, or “Tasty and that’s it” in its place.
The new chain is said to have seen a record day after 50 restaurants opened in and around Moscow as crowds were photographed queuing to sample its first offerings.
CEO Oleg Paroev is keen to add locations, but acknowledged the challenge of replacing some components and
suppliers, as well as dealing with other franchisees who still use the McDonald’s brand.
The saga of McDonald’s exit shows how difficult it is for Western consumer companies that decided to leave due to Moscow’s actions in Ukraine to sever all ties with Russia, as well as for domestic operators to replace famous brands.
Thousands who attended the main opening of Vkosno and Toshka on Pushkin Square in Moscow were greeted with a new logo and color
The scheme and packaging of all McDonald’s trademarks were cut short, as the new company lost the right to the trademarks and intellectual property of the American group.
“On the first day we sold nearly 120,000 burgers,” Baroev said. “We’ve never seen such a daily turn around all the time
McDonald’s has worked in Russia. ”
MAXIM SHIPENKOV / EPA-EFE / REX / Shutterstock)
While Baruev does not expect this demand to continue, he aims to exceed the growth target of new owner Alexander Goffor and achieve it ahead of schedule. Govor’s goal is to reach 1,000 stores in four to five years, up from about 850 under the McDonald’s brand.
Employment continues, Baroev said, who also wants to expand cooperation with strategic partner Sberbank, although the role of shareholder in Russia’s largest lender is excluded.
Gofor, who previously ran 25 restaurants, said at the launch event that he paid a “symbolic” sum for McDonald’s Russia and that
A US company has made it clear that it will not exercise the buyback option for 15 years.
Baroev, expressing his personal opinion, said that McDonald’s could return to Russia if Vkusno & tochka again became the franchisee,
But he stressed that there were no discussions in this regard.
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In an emailed statement, McDonald’s said it had “finished the sale of its Russia business and is exiting the market.”
Some of the former McDonald’s franchisees kept their brand on e-packages and menus and sold their Big Mac under a different name, which caused a headache for Vkusno & tochka.
“Of course we are not happy with that,” Baroev said.
He said that while continued use of the McDonald’s trademark is a violation of Russian law, the company cannot take legal action because it does not have rights to the trademark.
Rosinter Restaurants, a former franchisor that still operates at St Petersburg’s train stations and Pulkovo Airport, did not respond to a request for comment.
Baroev said that Vkusno & tochka had proposed to previous franchisees to join the new brand, and one of them had already agreed.
Baruev said Gofor has bought about 700 restaurants, leaving about 100 restaurants missing, while Fkosno and Tuchka still have
Reach out to old suppliers, while previous franchisees don’t.
“It’s a mystery to me what products are sold there,” he said of restaurants at train stations and airports.
Friday. “But I can say for sure that it is not at all the same as the products or ingredients that were sold before
Baroev said Vkusno & tochka is determined to maintain product quality, but maintaining a familiar taste is a challenge.
Although 99% of the products come from Russian suppliers, Baroev said a “large percentage” of the ingredients are sourced from Russia.
Offshore, a complex process due to sanctions and supply chain disruptions.
MAXIM SHIPENKOV / EPA-EFE / REX / Shutterstock)
Baruev said Vkusno & tochka is looking for a new beverage supplier, as Coca Cola is depleting its stock in Russia. The coffee blend, he said, would remain, he said, now offered by an Indian investor who bought the Russian operations of Finnish Poleg.
As agreed with McDonald’s, recipes will change and work is underway to replace the Big Mac, Baroev said.
“This is a huge loss,” he said. “The fact that he has now disappeared from the list does not help us.”
The creation of the new brand will take some time, but Baruev was optimistic.
“Our guests will get used to the new name and understand that they are no longer in ‘Mac’, but in ‘tochka’.”