Factbox: What's in a name? Rebranded McDonald's outlets open in Russia

June 12 (Reuters) – McDonald’s (MCD.N) eating places opened their doorways in Moscow as soon as once more on Sunday below new Russian possession and a brand new title, “Vkusno & tochka”, which interprets as “Tasty and that is it”. learn extra

Here is what we all know:

LOGO:

Register now for FREE limitless entry to Reuters.com

The well-known Golden Arches have been taken down and changed with a brand new emblem, resembling a letter “M”, comprising two fries and a hamburger patty towards a inexperienced background. learn extra

Chief government Oleg Paroev mentioned the brand new firm had settled on the brand new title – a intently guarded secret – solely the day earlier than the launch.

There was some hypothesis on social media about how finest to translate the brand new title into English. “Tasty and that is it” was broadly adopted, though one other suggestion was: ‘Tasty. Full cease.’

BRANCHES:

“Vkusno & tochka” reopened on Sunday in Pushkin Sq. in what was McDonald’s first restaurant in Soviet Moscow in 1990, when it offered as many as 30,000 burgers, however the queue exterior the restaurant was a lot smaller than three many years in the past.

The chain will preserve its outdated McDonald’s inside however will take away any hint of its former title.

Initially 15 rebranded eating places will open in and across the capital and one other 200 eating places by end-June and all 850 by the top of summer time, executives mentioned on Sunday.

The brand new proprietor mentioned as much as 7 billion roubles ($126 million) can be invested this 12 months within the enterprise, which employs greater than 50,000 individuals.

MENU:

McDonald’s flagship Large Mac and different burgers and desserts comparable to McFlurry are lacking, however different common objects are on a smaller menu promoting at barely decrease costs.

A double cheeseburger was going for 129 roubles ($2.31) in contrast with roughly 160 below McDonald’s and a fish burger for 169 roubles, in contrast with about 190 beforehand.

Paroev mentioned the chain would preserve costs “inexpensive”. They’d seemingly rise as a result of inflation, however not greater than its opponents, he mentioned.

Most components come from inside Russia, however some objects weren’t instantly obtainable as a result of logistical difficulties and since some suppliers have left Russia. As an illustration, it must discover a new gentle drinks provider after Coca Cola suspended enterprise there.

OWNERSHIP:

Siberian businessman Alexander Govor has taken over the franchise operation via his agency GiD LLC. He has been a McDonald’s licensee since 2015 and had helped the chain develop into distant Siberia, the place he operated 25 eating places.

McDonald’s could have an choice to purchase its eating places in Russia again inside 15 years, Russian authorities have mentioned. learn extra

Govor advised reporters on Sunday the worth he paid was “far decrease than market worth” and had been a “symbolic” determine. The U.S. chain booked a $1.4 billion cost for the deal. McDonald’s didn’t reply to a request for touch upon the worth.

Russia and Ukraine accounted for about 9%, or $2 billion, of McDonald’s income final 12 months.

MANAGEMENT/STAFF:

McDonald’s former Russian head Paroev is operating the enterprise. Till the takeover, he had labored for McDonald’s for seven years, together with as chief monetary officer of the Russian enterprise for 6-1/2 years till November 2021, based on his LinkedIn profile.

He was appointed Russia McDonald’s CEO in February, weeks earlier than Moscow despatched tens of 1000’s of troops into Ukraine on Feb. 24.

Govor will retain the chain’s tens of 1000’s of staff for not less than two years, the U.S. firm mentioned. learn extra

($1 = 55.7500 roubles)