After About 6 Months Since Store Closures in Ukraine in Early March
Gradual Reopening Planned in Kyiv and Western Regions
The representative American fast-food chain McDonald's is reopening in Ukraine. It has been six months since it temporarily closed following Russia's invasion of Ukraine. [Image source=Yonhap News]
[Asia Economy Culture Young Intern Reporter] The American representative fast-food chain 'McDonald's' plans to reopen its stores in Ukraine, which were temporarily closed after Russia invaded Ukraine. McDonald's closed 109 stores in Ukraine in early March, two weeks after Russia's invasion. However, salaries for about 10,000 employees at those stores have continued to be paid.
According to foreign media including CNN Business, on the 11th (local time), Paul Pomroy, McDonald's Chief Global Markets Officer, announced on the website, "We have decided to gradually reopen some stores in Kyiv, the capital of Ukraine, and the western region." He added, "This decision was made after discussions with Ukrainian government officials, security experts, and suppliers."
He also said in an internal notice, "We had extensive conversations with employees at the local stores who strongly expressed their willingness to return to work and their desire to reopen the Ukrainian stores," adding, "We have come to believe that reopening the stores can contribute, even in a small way, to the normalization of Ukraine."
The British daily The Guardian expressed hope that McDonald's plan would "be a sign that war-torn Ukraine is gradually returning to normal."
The Chicago Tribune reported that McDonald's plans to sequentially resume operations starting with stores in Kyiv and the western region. However, McDonald's has not yet disclosed specific details such as how many of the 109 stores in Ukraine will reopen or which stores will open first and when. McDonald's stated that it will take some time to cooperate with suppliers to supply goods to each store, prepare employees, and establish protocols related to the war.
Meanwhile, McDonald's also closed 850 stores in Russia following the Ukraine crisis. At that time, McDonald's stated, "Due to the humanitarian crisis caused by the Ukraine war and the unpredictable business environment, we concluded that it is not advisable to continue operations in Russia." They also said, "It does not align with McDonald's values, and we have no plans to maintain or re-enter the business." Salaries for about 62,000 employees at Russian stores have also been continuously paid.
McDonald's opened its first store in Moscow in 1990, which was called a symbol of the 'end of the Cold War.' However, after 32 years in the Russian market, McDonald's decided to withdraw in May and sold the business to a local company. The acquiring company, Vkusno i Tochka, is known to be operating McDonald's locations under the name 'Tasty.'
Headquartered in Chicago, McDonald's operates about 40,000 stores in 120 countries. According to the Chicago Tribune, the sale of the Russian business is the first case of McDonald's withdrawing from a major market.
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