News / Europe

McDonald's Still Thriving in Russia After 20 Years

McDonald's crew and founder at the opening in Pushkin Square, 31 Jan 1990
McDonald's crew and founder at the opening in Pushkin Square, 31 Jan 1990

McDonald's, the U.S. based food service giant, has marked 20 years of business in Russia. The Pushkin Square McDonald's, the first outlet in the country, is still the busiest in the world. 

It took 14 intense years of negotiations for McDonald's to get entry into the Soviet Union. 

And as the company marked the 20th anniversary of the opening of the first landmark restaurant under Soviet rule in 1990, CEO James Skinner said McDonald's will expand by 45 outlets in Russia by the end of this year.

George Cohon founded McDonald's in Russia and Canada. He says discussions were very slow, not to mention painful.

"We took our time; we had to explain what McDonald's is. There were many levels of pessimism. First level was you will never make the deal. Well it took us 14 years, but we made it," said Cohon.  "Next level, was well, you won't get good employees. And my answer to that one always was who wins the Olympics? Who gets the most medals in the Olympics? The former Soviet Union. And then the one that really made me laugh. It won't last. You're gonna open and you're going to go away."

In 1990, the Soviet Union was in shambles, the economy was collapsing and political turmoil was rife.

Khamzat Khasbulatov started out as manager of the country's flagship store at Pushkin Square and is now president of McDonald's Russia.

He says the political system was entirely different, the economy was different, the country was named differently. It was virtually impossible to predict what the future held. Even the currency was not convertible because there was hyperinflation.

Despite the odds patrons lined up, some for nearly 10 hours in sub-freezing temperatures, to get a glimpse of the American fast-food icon.

Natalya Kolesknikova told Russian State Television, that McDonald's offered her the first taste of freedom, in a closed country.

She says it was like going to a major event and that people from all over Moscow, and even outside of the city, drove for the opening. She says McDonald's played a very important role in Russia and that when guests came to visit, she showed them two things,  the Kremlin and McDonald's.

Kolesnikova's attitude towards the restaurant is shared by many Russians. The location at Pushkin Square is the most popular McDonald's in the entire world.  Over the past 20 years, it has served more than 130 million customers.

So what makes the fast-food chain so popular in the former Soviet Union?  Cohon says McDonald's did something that Communist officials had consistently failed to do.

"I think that we delivered what we promised," he said.  "We said we could bring quality food and clean surroundings at a price people could afford and we did that."

When Cohon was asked whether the burger giant ever had to adapt or compromise its tastes to sell its products, he replied.

"A Big Mac is a Big Mac is a Big Mac anywhere around the world. The taste is the taste," he said.  "One or two products maybe different, but it should be the same taste around the world."

And apparently Russians like the Big Mac. McDonald's serves nearly one million customers daily.   As a result, the company has big plans for the future.

"We will invest in 2010 more than we ever have in the past," said Denis Hennequin, president of McDonald's Europe.  "2009 record year but we will grow investment by 20 percent. Russia will be leading with a record number of openings."

Cohon says he's not surprised by McDonald's success and he expects that it will continue.

"Once they tasted it I always thought that they'd love it," he said.  "They vote with their feet and they walk in here more than anywhere else."

The company now runs restaurants in 60 Russian cities and plans to spend $135 million on its expansion there this year.
 

You May Like

US Investors Eye IPO for China's Alibaba

E-commerce giant handled 80 percent of China's online business last year, logging more Internet transactions than US-based Amazon.com and eBay combined More

Video Uneasy Calm Settles Over Israel, Gaza Strip

As cease-fire begins, Palestinians celebrate in streets; Israelis remain wary More

Video Chinese Doctors Use 3-D Spinal Implant

In treatment of a 12-year-old boy Chinese doctors used a 3-D printer and special software to create an exact replica of vertebra More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Chinese Doctors Use 3-D Spinal Implanti
X
August 27, 2014 4:53 PM
A Chinese boy suffering from a debilitating bone disease has become the first patient with a part of his spine created in a three-dimensional printer. Doctors say he will soon regain normal mobility. VOA’s George Putic reports.
Video

Video Chinese Doctors Use 3-D Spinal Implant

A Chinese boy suffering from a debilitating bone disease has become the first patient with a part of his spine created in a three-dimensional printer. Doctors say he will soon regain normal mobility. VOA’s George Putic reports.
Video

Video Uneasy Calm Settles Over Israel, Gaza Strip

Israel and the Gaza Strip have been calm since a cease-fire set in Tuesday evening, ending seven weeks of hostilities. Hamas, which controls Gaza, declared victory. Israelis were more wart. VOA’s Scott Bobb reports from Jerusalem.
Video

Video India’s Leprosy Battle Stymied by Continuing Stigma

Medical advancements in the treatment of leprosy have greatly diminished its impact around the world, largely eliminating the disease from most countries. India made great strides in combating leprosy, but still accounts for a majority of the world’s new cases each year, and the number of newly infected Indians is rising - more than 130,000 recorded last year. Doctors there say the problem has more to do with society than science. VOA News reports from Kolkata.
Video

Video Northern California Quake: No Way to Know When Next One Will Hit

A magnitude 6.0 earthquake rocked northern California’s Napa Valley on Sunday. Roads twisted and water mains burst. It was the wine country’s most severe quake in 15 years, and while hospitals treated many people, no one was killed. Arash Arabasadi has more from Washington on what the future may hold for those residents living on a fault line.
Video

Video Scientists Unlock Mystery of Bird Flocks

How can flocks of birds, schools of fish or herds of antelope suddenly change direction -- all the individuals adjusting their movement in concert, at seemingly the same time? British researchers now have some insights into this behavior, which has puzzled scientists for a long time. VOA's George Putic has more.
Video

Video Ukraine: Captured Troops Proof of Russian Role in Separatist Fight

Ukrainian officials say they have captured Russian soldiers on Ukrainian territory -- the latest accusation of Moscow's involvement in the conflict in eastern Ukraine. VOA's Gabe Joselow reports from the Ukrainian side of the battle, where soldiers are convinced of Russia's role.
Video

Video Rubber May Soon Come From Dandelions

Synthetic rubber has been around for more than a century, but quality tires for cars, trucks and aircraft still need up to 40 percent or more natural rubber content. As the source of natural rubber, the rubber tree, is prone to disease and can be affected by bad weather. So scientists are looking for replacements. And as VOA’s George Putic reports, they may have found one in a ubiquitous weed.
Video

Video Jewish Life in Argentina Reflected in Yiddish Tango

Jewish people from across Europe and Russia have been immigrating to Argentina for hundreds of years. They brought with them dance music that were eventually mixed with Argentine tango. The result is Yiddish tango -- a fusion of melodies and cultural experiences that is still evolving today. Elizabeth Lee reports from the Skirball Cultural Center in Los Angeles, where one band is bringing Yiddish tango to an American audience.

AppleAndroid