McDonald's will reopen some branches in Ukraine to support 'important sense of normalcy'

McDonald’s will reopen some branches in Ukraine to support ‘important sense of normalcy’

Aug 11, 2022

McDonald’s will reopen some branches in Ukraine, in a show of support after the US fast-food chain pulled out of Russia.

Following Vladimir Putin’s invasion in February, McDonald’s closed its restaurants in Ukraine, but has continued to pay more than 10,000 staff employed in the country, while it closed and sold branches in Russia.

It said on Thursday that it will slowly start to reopen some of its branches in the capital Kyiv and western Ukraine.

Other major Western companies have also reopened their businesses in Ukraine recently, including Nike, KFC and Mango.

“We’ve spoken extensively to our employees who have expressed a strong desire to return to work and see our restaurants in Ukraine reopen,” Paul Pomroy, corporate senior vice president of international operated markets, said in a message to employees.

“In recent months, the belief that this would support a small, but important sense of normalcy has grown stronger.”

Ukraine’s economy has been severely impacted by the war, with the International Monetary Fund expecting its economy to shrink by 35% in 2022, in part due to businesses halting operations because of the war.

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McDonald’s has 109 restaurants in Ukraine, but Mr Pomroy didn’t say how many would reopen, when it would happen or the locations.

The company said it would start working with vendors to get supplies into branches, prepare stores, bring employees back and launch safety procedures due to ongoing fighting in the east.

McDonald’s has sold its 850 restaurants in Russia to local franchise owner Alexander Govor, who held a licence for 25 branches in Siberia and who has begun reopening former McDonald’s locations under the name Vkusno-i Tochka or Tasty-period.

McDonald’s opened its first Russian location in Moscow three decades ago. Selling its Russian business was the first time the fast-food giant has “de-arched” or left a major market.

McDonald’s closed hundreds of locations throughout Russia in March, costing the company $55m (£45m) a month.

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