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

    Native Americans Ask: What About Our Water Supply?

    They say they have been facing a dangerous water contaminant for decades - uranium – but the problem has received far less attention than water contamination by lead in Flint, Michigan

    Pakistan's President Urges Nation Not to Celebrate Valentine's Day

    Mamnoon Hussain criticizes Valentine's Day, which falls on Sunday this year, as a Western import that threatens to undermine the Islamic values of Pakistan

    Mother of IS Supporter: Son Was Peaceful, 'Role Model'

    Somali-American Abdirizak Mohamed Warsame pleaded guilty Thursday to charges of conspiring to provide material support to Islamic State militants

    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.
    Two-thirds of World Faces Water Shortagei
    X
    February 12, 2016 7:31 PM
    Four billion people — or two out of every three on the planet — do not have enough water to meet their basic needs. That is far greater than previously thought, according to a new study that presents a more accurate picture of the problem. As VOA's Rosanne Skirble reports, the findings will help policymakers and the public craft solutions to address the threat.
    Video

    Video Two-thirds of World Faces Water Shortage

    Four billion people — or two out of every three on the planet — do not have enough water to meet their basic needs. That is far greater than previously thought, according to a new study that presents a more accurate picture of the problem. As VOA's Rosanne Skirble reports, the findings will help policymakers and the public craft solutions to address the threat.
    Video

    Video Gateway to Mecca: Historical Old Jeddah

    Local leader Sami Nawar's family has been in the Old City of Jeddah for hundreds of years and takes us on a tour of this ancient route to Mecca, also believed to be the final resting place of Adam's wife, Eve.
    Video

    Video New Technology Aims to Bring Election Transparency to Uganda

    A team of recent graduates from Uganda’s Makerere University has created a mobile application designed to help monitor elections and expose possible rigging. The developers say the app, called E-Poll, will make Uganda's democratic process fairer. From Kampala, VOA's Serginho Roosblad reports.
    Video

    Video As Refugees Perish, Greek Graveyards Fill

    Aid workers on the Greek island of Lesbos say they are struggling to bury the increasing number of bodies of refugees that have been recovered or washed up ashore in recent months.  The graveyards are all full, they say, yet as tens of thousands of people clamor to get out of Syria, it is clear refugees will still be coming in record numbers. For VOA, Hamada Elrasam reports from Lesbos, Greece.
    Video

    Video Russia Bristles at NATO Expansion in E. Europe

    Russian Foreign Minister Sergei Lavrov is meeting Friday with the head of NATO after the Western military alliance and the United States announced plans for the biggest military build-up in Europe since the Cold War. Russia has called NATO's moves a threat to stability in Europe. But NATO says the troop rotations and equipment are aimed at reassuring allies concerned about Russia as VOA's Daniel Schearf reports from Moscow.
    Video

    Video To Fight Zika, Scientists Target Mosquitoes

    Mosquitoes strike again. The Zika virus outbreak is just the latest headline-grabbing epidemic carried by these biting pests, but researchers are fighting back with new ways to control them. VOA's Steve Baragona takes a look.
    Video

    Video Mosul Refugees Talk About Life Under IS

    A top U.S. intelligence official told Congress this week that a planned Iraqi-led operation to re-take the city of Mosul from Islamic State militants is unlikely to take place this year. IS took over the city in June 2014, and for the past year and a half, Mosul residents have been held captive under its rule. VOA's Zana Omar talked to some families who managed to escape. Bronwyn Benito narrates his report.
    Video

    Video Scientists Make Progress Toward Better Diabetes Treatment, Cure

    Scientists at two of the top U.S. universities say they have made significant advances in their quest to find a more efficient treatment for diabetes and eventually a cure. According to the International Diabetes Federation, the disease affects more than 370 million people worldwide. VOA’s George Putic reports.
    Video

    Video NATO to Target Migrant Smugglers

    NATO has announced plans to send warships to the Aegean Sea to target migrant smugglers in the alliance's most direct intervention so far since a wave of people began trying to reach European shores.
    Video

    Video Russia's Catholics, Orthodox Hopeful on Historic Pope-Patriarch Meeting

    Russia's Catholic minority has welcomed an historic first meeting Friday in Cuba between the Pope and the Patriarch of Russia's dominant Orthodox Church. The Orthodox Church split with Rome in 1054 and analysts say politics, both church and state, have been driving the relationship in the centuries since. VOA's Daniel Schearf reports from Moscow.
    Video

    Video Used Books Get a New Life on the Streets of Lagos

    Used booksellers are importing books from abroad and selling them on the streets of Africa's largest city. What‘s popular with readers may surprise you. Chris Stein reports from Lagos.
    Video

    Video After NH Primaries All Eyes on South Carolina

    After Tuesday's primary in New Hampshire, US presidential candidates swiftly turned to the next election coming up in South Carolina. The so-called “first-in-the-South” poll may help further narrow down the field of candidates. Zlatica Hoke reports.
    Video

    Video Smartphone Helps Grow Vegetables

    One day, you may be using your smartphone to grow your vegetables. A Taipei-based company has developed a farm cube — a small, enclosed ecosystem designed to grow plants indoors. The environment inside is automatically adjusted by the cube, but it can also be controlled through an app. VOA's Deborah Block has more on the gardening system.
    Video

    Video Exhibit Turns da Vinci’s Drawings Into Real Objects

    In addition to being a successful artist, Renaissance genius Leonardo da Vinci designed many practical machines, some of which are still in use today, although in different forms. But a number of his projects were never realized — until today. VOA’s George Putic reports.