Fast-food giant McDonald’s withdrew from Russia in May amid the country’s ongoing invasion of Ukraine, shutting shop at 850 locations. As it exited Russia, it sold its outlets in the country to a local licence holder – Alexander Grovor. In no time, the stores were re-branded with a new name – Vkusno i Tochka, and a slogan that said: “The name changes, love stays”. The logo replaced McDonald’s iconic golden arches with one consisting of two fries and a hamburger patty against a green background. The name ‘Vkusno i Tochka’ translates to “Tasty, that’s it”.
McDonald’s in Russia
McDonald’s first entered Russia in 1990, with its first location opening on January 31 that year in Moscow’s Pushkin Square. The opening was a grand success with about 38,000 customers queuing up outside the store breaking the company’s all time record.
In the next seven years, the company opened 21 locations across Russia. By the time it decided to fold operations in May this year, it had about 62,000 employees across the country.
The Russian makeover
‘Vkusno i Tochka’ opened their first stores in and around Moscow’s Pushkin square, selling about 120,000 burgers on the first day, breaking records set by McDonald’s before leaving the country. The new chain has completely done away with McDonald’s packaging and colours, even changing the staff uniforms. However, most items on the menu remain similar to those served at McDonald’s, although with changed names. The menu, while lacking McDonald’s signature Big Mac and McFlurry, has other similar items. Some of the store’s burgers are — Grand De Luxe, Double Grand, Grandee, Chicken Premier, single or double fish burger. The store also serves wraps, desserts, fries, muffins, buns along with a wide variety of breakfasts, beverages and sauces.
While the menu is smaller when compared to McDonald’s, Grovor hopes to launch items similar to the Big Mac. He said: “The Big Mac is the story of McDonald’s. We will definitely do something similar…We will try to do something even better so that our visitors and guests like this dish.”
People lineup to visit a newly opened fast food restaurant in a former McDonald’s outlet in Bolshaya Bronnaya Street in Moscow, Russia, Sunday, June 12, 2022. The sign reads ‘The Name Changes, Love Remains’. (AP Photo/Dmitry Serebryakov)
Can McDonald’s return?
While Russian authorities have stated that McDonald’s can buy back its business within 15 years, Grovor disagrees, claiming that the fast-food giant has no intention to do the same.
The rebranded firm aims to open about a 1000 locations across Russia in the four to five years, expanding from the 850 under McDonald’s.
The biggest challenge ‘Vkusno i Tochka’ faces is maintaining a steady flow of customers and matching the quality and experience of McDonald’s, with CEO Oleg Paroev stating: “Our goal is that our guests do not notice a difference either in quality or ambiance.”
Others who left Russia
McDonalds isn’t the only company that has stopped selling its goods in the country. Starbucks, Coca Cola, Mothercare, Heineken have stopped supplying to Russia and shut their stores in the country after the Ukraine invasion. Imperial Brands, which include companies like Davidoff Cigarettes and JPS, have also stopped production at their factories in the country, with British American Tobacco halting investment as well. Netflix and Levi’s too have stopped sales in the country.
FAQs
In no time, the stores were re-branded with a new name – Vkusno i Tochka, and a slogan that said: “The name changes, love stays”. The logo replaced McDonald's iconic golden arches with one consisting of two fries and a hamburger patty against a green background.
Why did McDonald's rebrand in Russia? ›
McDonald's pulled out of Russia amid the war with Ukraine, and sold its restaurants. The first rebranded location just opened under a new name, with new logos and uniforms. The menus and restaurants are mostly the same, with slightly different branding.
Why did McDonald's rebrand? ›
The new name, McDonald's, reflected a more focused brand identity, paving the way for its future as a global fast-food giant. This rebranding was a key step in the company's evolution, aligning its identity more closely with the efficient and speedy service that McDonald's would become known for.
What does Russia have instead of Mcdonalds? ›
Vkusno I Tochka, the fast food chain established following the exit of McDonald's from the Russian market, is already outperforming the American chain after just a year of operations, the company has revealed.
How McDonald's won big in Russia and then lost it all? ›
How McDonald's Won Russia—and Then Lost It All. For 30 years the fast-food icon turned meat, bread and potatoes into a display of capitalism that changed the way the country did business. Then Putin invaded Ukraine. Not long ago, McDonald's flagship restaurant in Moscow completed a truly ill-timed remodeling.
What is Starbucks called in Russia now? ›
On Thursday, one of Russia's most popular rappers, Timur Yunusov—more commonly known as Timati—alongside restaurateur Anton Pinskiy, unveiled “Stars Coffee” as the replacement for Starbucks in Russia. In May, Starbucks announced that it was exiting Russia after 15 years in the country.
Is KFC still in Russia? ›
Brands Exit from Russia Complete. April 17, 2023 – Yum! Brands has completed its exit from the Russian market by selling its KFC business in Russia to Smart Service Ltd., a local operator led by Konstantin Yurievich Kotov and Audrey Eduardovich Oskolkov.
What happened to the original McDonald's? ›
The original hexagonal McDonald's hamburger stand located at 1398 North E Street in San Bernardino was demolished in 1953 and replaced by a building in the now familiar Golden Arches style.
Did China buy McDonald's? ›
McDonald's increases its minority stake in China business with Carlyle deal. McDonald's is increasing its minority stake in its China business from 20% to 48%. In 2017, the fast-food giant sold control of its restaurants in mainland China, Hong Kong and Macao to Carlyle and Citic.
What is McDonald's new name? ›
McDonald's unveiled its new spinoff brand known as CosMc's this week, announcing that the new brand's first location will open in Bolingbrook, Illinois. CosMc's drive-thru focused menu features brand new lemonades and teas, blended beverages, and cold coffee, as well as a small lineup of food.
But there is more to this case. Russia continues to lose brands that historically were with the country for the longest periods of time.
Is Burger King still in Russia? ›
Burger King's roughly 800 Russian restaurants remain open. Its parent company said in March 2022 it had started the process to dispose of its ownership stake.
Is Coca-Cola in Russia? ›
Coca-Cola announced it was leaving the Russian market back in March 2022 as part of the global response to the invasion of Ukraine. Coca-Cola HBC, the Greek-owned company that bottled and sold co*ke in Russia, switched to a new brand, Dobry Cola.
What is McDonald's called in Russia now? ›
Due to the Russian invasion of Ukraine, McDonald's temporarily suspended all operations in the country on 8 March. In May, the company announced that it would sell all of its restaurants in Russia, which were rebranded as Vkusno i tochka.
Does Ukraine have McDonald's? ›
Over 25 years of operation, McDonald's has become a landmark company for Ukraine, its return to the market in the fall of 2022 was awaited by a large number of Ukrainian consumers. The first McDonald's restaurant in Ukraine was opened on May 24, 1997 in Kyiv near the Lukyanivka metro station.
How much did McDonald's lose from pulling out of Russia? ›
The company's overall revenue dipped 3% to $5.8 billion in the second quarter largely because McDonald's closed its company-owned eateries in Russia and Ukraine after the war broke out. Profits fell by nearly half due to a $1.2 billion charge related to the sale of the Russian business, the company said Tuesday.
Why is McDonald's now called WcDonald's? ›
McDonald's has decided to cosplay as its animated alter ego. Starting Feb. 26, the fast-food chain launched a manga-inspired makeover, embracing the upside-down golden arches featured in some of anime's most iconic movies and shows, where it is cheekily known as “WcDonald's.”
How did McDonald's pull out of Russia? ›
The burger chain will now sell its business, which included some 847 restaurants, saying that the “humanitarian crisis caused by the war in Ukraine, and the precipitating unpredictable operating environment, have led McDonald's to conclude that continued ownership of the business in Russia is no longer tenable, nor is ...
Did Coca-Cola leave Russia? ›
Two weeks after the invasion of Ukraine, the U.S. Coca-Cola Company announced that it was ceasing operations in Russia, abandoning its investments and halting its promotional activities. That meant that officially, Coca-Cola, Sprite, Fanta and other brands would no longer be on sale.
People lineup to visit a newly opened fast food restaurant in a former McDonald’s outlet in Bolshaya Bronnaya Street in Moscow, Russia, Sunday, June 12, 2022. The sign reads ‘The Name Changes, Love Remains’. (AP Photo/Dmitry Serebryakov)