Sector News

McDonald’s move to reopen in western Ukraine signals restored business confidence

August 14, 2022
Consumer Packaged Goods

After half a year without the golden arches serving its classic Big Macs, McDonald’s has decided to reopen its business in war-torn Ukraine, where it had over 100 restaurants and 10,000 employees before the war started.

The company has kept paying the salaries of its Ukraine employees since it initially stopped operations in February.

“After extensive consultation and discussion with Ukrainian officials, suppliers and security specialists, and in consideration of our employees’ request to return to work, we have decided to institute a phased plan to reopen some restaurants in Kyiv and western Ukraine, where other businesses have safely reopened,” says Paul Pomroy senior VP at McDonald’s.

“Over the next few months, we will begin working with suppliers to get product to restaurants, making the physical properties ready to serve customers, bringing restaurant teams and employees back on site, and implementing enhanced procedures and protocols to support the safety of our people and customers,” he continues.

The five questions
McDonald’s executives asked themselves five questions when considering to reopen or not its business in Ukraine: “Are we legally allowed to operate in the country? Do we have the freedom to operate the business and meet the needs of our customers and crew unimpeded? Is our presence in the market brand-enhancing to our global operations? Does it make good business sense? Does it align with our values?”

In a similar manner, McDonald’s closed its operations in Russia after its CEO, Chris Kempczinski, announced that the answers to all the same questions for its business in Russia were “currently no.”

The conflict situation in Ukraine led the US-based fast food chain to sell its Russian restaurants, after a 32-year stay that began as a symbol of the end of the Cold War.

Normal business
McDonald’s, which has over 39,000 restaurants worldwide, wants to try to restore business confidence in the country.

“In recent months, the belief that this would support a small but important sense of normalcy has grown stronger. And Ukrainian officials have advised that businesses resuming operations will support the local economy and the Ukrainian people,” highlights Pomroy.

The National Bank of Ukraine expects the country’s economy to shrink by a third this year, according to its latest July estimate.

With this latest move to restore some sense of normalcy, McDonald’s will join KFC, which remains open in Kyiv.

By Marc Cervera

Source: foodingredientsfirst.com

comments closed

Related News

April 26, 2024

Haleon names new Finance Chief and new CHRO

Consumer Packaged Goods

Consumer healthcare firm Haleon has appointed Tate & Lyle executive Dawn Allen as its new chief financial officer, effective 1 November 2024. Allen will succeed Tobias Hestler, who has decided to step down from the role, citing a long-term health condition, the company said.

April 26, 2024

Campari to double Aperol production capacity with €75m investment

Consumer Packaged Goods

The group said that the bottling line, which adds 6,500 square metres to the existing 60,700-square-metre site, is the next necessary stage in the company’s international development. The leading brand in Campari Group’s global sales, demand for the Italian bitter apéritif has grown by 500% in the last decade.

April 26, 2024

Coca-Cola enters $1.1bn strategic partnership with Microsoft

Consumer Packaged Goods

The partnership will see Coca-Cola adopt new technology to foster innovation and productivity globally. Through the deal, Coca-Cola has made a $1.1 billion commitment to the Microsoft Cloud and its generative AI capabilities.

How can we help you?

We're easy to reach