MOSCOW, June 21 (Reuters) – Big Macs and McFlurrys are no longer on the menu at former McDonald’s restaurants in Russia, but its successor, ‘Vkusno & tochka’, has set ambitious growth targets after selling a number hamburger record on the day it opened, its chief executive told Reuters.
McDonald’s pulled out of Russia entirely, selling all of its restaurants to one of its local franchisees in May. Under the new name of “Vkusno & tochka”, or “Savoureux et c’est tout” (“Tasty & that’s it”), 50 restaurants in Moscow and around the Russian capital reopened on June 12 and 13 .
General manager Oleg Paroev wants to open new locations, but recognizes that replacing ingredients and suppliers is a real challenge, as well as dealing with other franchisees still using the McDonald’s brand.
The saga of McDonald’s departure is indicative of the difficulties faced by Western companies that severed all ties with Russia after the invasion of Ukraine and also faced by local operators to replace popular brands.
Thousands of people who turned out for the opening of “Vkusno & tochka” in Pushkin Square in Moscow were greeted by a new logo, a new color scheme and packaging devoid of any reference to McDonald’s, the new company having lost the right to the trademarks and intellectual property of the American group.
“On the first day we sold almost 120,000 hamburgers,” said Oleg Paroev. “We have never seen such daily turnover since McDonald’s started working in Russia.”
While Oleg Paroev doesn’t expect such demand to last, he intends to exceed the growth target set by new owner Alexander Govor, ahead of schedule. The latter expects to reach 1,000 restaurants within four to five years, against approximately 850 previously opened under the McDonald’s brand.
Recruitment continues, added Oleg Paroev, who also wants to extend cooperation with its strategic partner, Sberbank, while excluding a role as a shareholder for the first Russian bank.
Alexander Govor, who previously ran 25 restaurants, said at the launch that he had paid a “token” sum for McDonald’s Russia and that the American company had made it clear that it did not want to exercise a buyout option which it has for a period of time. 15 years old.
Oleg Paroev, however, believes that McDonald’s could return to Russia if “Vkusno & tochka” becomes a franchise again, but stressed that there have been no discussions to this effect.
McDonald’s, for its part, said in a press release that it had “completed the sale of its activities in Russia and has withdrawn from the market”.
Some former McDonald’s franchisees in Russia have retained the brand on packaging and offer Big Macs under another name, thus causing difficulties for “Vkusno & tochka”.
Although the use of the McDonald’s trademark is a violation of Russian law, “Vkusno & tochka” cannot take any legal action for lack of trademark rights, Oleg Paroev explained.
“Vkusno & tochka” also offered former franchisees to join the new brand, said Oleg Paroev, adding that one of them had already accepted.
The new brand is keen to maintain the quality of its products, he added, but he acknowledges that maintaining a familiar taste remains a challenge.
Even though 99% of its products come from Russian suppliers, a “significant amount” of ingredients is imported from abroad, Oleg Paroev said, a process complicated by sanctions and disruptions in supply chains.
The brand is also looking for a new drinks supplier, as Coca Cola is about to run out of stock in Russia, Oleg Paroev said.
He added that the recipes will also be changed, as agreed with McDonald’s. (Reuters report; French version Dagmarah Mackos, editing by Matthieu Protard)