by Hilary Russ
NEW YORK (Reuters) – McDonald’s announced on Tuesday the temporary closure of its 847 restaurants in Russia, adding to the list of Western companies that have decided to suspend operations in the country due to the invasion launched by Moscow in Ukraine.
The move by the fast-food giant could prompt other multinationals to follow suit, as many, including Pepsi, are being urged to halt operations in Russia.
It is a strong symbol, the first McDonald’s restaurant opened in Russia, in central Moscow in 1990, having become a banner of flourishing American capitalism after the fall of the Soviet Union.
The group said it would continue to pay salaries to its 62,000 employees in Russia.
In a note emailed to all McDonald’s employees worldwide and posted on the group’s website, the chief executive said it was “impossible to predict” a potential reopening date for Russian restaurants.
“We are facing disruptions in our supply chain as well as other operational impacts,” said Chris Kempczinski. “We will also closely monitor the humanitarian situation.”
McDonald’s owns 84% of its restaurants in Russia, with the rest mostly franchises controlled by Moscow-based Rosinter Restaurants Holding.
(Reporting Hilary Russ in New York, Uday Sampath in Bangalore; French version Jean Terzian)
Copyright © 2022 Thomson Reuters