McDonald’s opened its first location in the then Soviet Union on Pushkin Square in Moscow in January 1990. Tens of thousands of people lined up for hours to try the West for the first time. Thus, many say that the Golden Arches have become a kind of proxy for America and globalization.
Some predicted that McDonald’s could fall victim to anti-American sentiment even before Russian President Vladimir Putin invaded Ukraine more than two weeks ago. The Chicago-based company closed its 108 stores in Ukraine shortly after the start of the war, but kept its stores in Russia even under mounting pressure.
Sales at these locations in both countries account for about 9% of the company’s total revenue, so their closure was a blow to the company’s revenue. McDonald’s continues to pay salaries to its employees in Ukraine and 62,000 Russian employees. Since then, executives have said the company will lose $50 million every month that Russian stores are closed.
Experts wondered how long it might take McDonald’s to restore the confidence of Russian consumers one day – and if – it reopens its establishments in the country, 84% of which are owned by the company. If Russia removes restrictions on trademarks, this issue will become even more complicated.