Hide Article Text (OCR)
McDonald’s serving up 9 new Russian locationsCanadian George Cohon, senior chairman of McDonald's in Russia, prepares to cut the cake celebrating a decade of selling Big Macs at the world's busiest McDonald’s in Moscow. Bloomberg NewsBloomberg News_________MOSCOW — McDonald’s Corp., the world’s largest restaurant company, will open nine new restaurants in Russia this year as it marks a decade of serving Big Macs at its busiest outlet worldwide on Moscow’s Pushkin Square.McDonald’s was among the earliest foreign investors in Russia, eager to tap a new market of 150 million people. When the first restaurant opened in 1990 on Pushkin, thousands of Muscovites and tourists from across Russia waited for hours in lines snaking down central Moscow’s Gorky Street, now known as Tverskaya. The restaurant still serves an average of 20,000 customers daily, making it the world’s busiest McDonald’s.McDonald’s has kept them coming through wars and coups d’etat, bank failures and ruble devaluations, with a combination of price cutting and local sourcing. A Big Mac in Moscow now costs $1.38, down from $2.10 in 1990. In London, a Big Mac is $3.23, while in Prague it’s $1.54.In the latest crisis, the ruble’s fallen 78 percent against the dollar in the past 16 months.“We saw a drop in sales of about 25- percent, but now we are reaching pre-crisis levels again,” said Glen Steeves, managing director of McDonald’s Russia. “We’re goingslowly, but with such a huge market the possibilities are unlimited.”The company, which has invested$140 million in Russia so far, keeps prices low by buying 75 percent of its food locally. It buys supplies from Russian companies such as Belaya Dacha, which grows lettuce and produces pickles, and Russian slaughterhouses, as well as U.S. companies Coca-Cola Corp. and Cargill Inc.Luba Zorieva, a 39-year-old social worker, can afford to take her sonVanya, 9, to the flagship McDonald’s store for a Happy Meal, which includes a toy and costs $2.20, once a month.“Everything is tasty and my son loves the toys,” Zorieva said, while Vanya was entertained by clowns in Russian costumes. “This is a way to do something nice for thekids.*George Cohon, senior chairmanof McDonald’s in Russia, was named “Capitalist Hero of Labor” by Moscow’s Pravda newspaper in 1990 after he was finally allowed toopen the first McDonald’s after knocking on bureaucrats’ doors since 1975.The company employs 5,000 in Russia. Students employed part-time earn a starting salary of about 70 cents per hour.
Newspaper Details
Arlington Heights Daily Herald Suburban Chicago
Arlington Heights, Illinois, US
Sun, Feb 06, 2000
Page 181
Full Page
Clipped by
Anonymous
USA 04 Nov 2019
Other Publications Near Arlington Heights, Illinois
Arlington Heights Daily Herald Suburban Chicago
Arlington Heights Herald
Daily Herald
Arlington Heights Day
Arlington Heights Sunday Herald
