News
McDonald's celebrates 20th anniversary in Russia
January 31, 2010
As Burger King celebrates its first store opening in Russia, McDonald's is honoring its 20th anniversary in the country, one that has become the chain's fastest growing market in Europe.
McDonald's Russia's first store opened in Moscow's Pushkin Square in 1990.
The opening on Jan. 31, 1990, made news around the world when Moscovites gathered to experience McDonald's for the first time in their home country. More than 30,000 customers were served — breaking the record for first-day sales in McDonald's history. That store remains one of the busiest McDonald's restaurants in the world, having welcomed more than 137 million customers since opening.
Since 1990, McDonald's Russia has since become the fastest growing market for McDonald's in Europe, serving more than 950,000 customers a day.
Instrumental in bringing McDonald's to Russia was George Cohon, founder of McDonald's Canada and Russia who worked for more than 14 years to bring the Golden Arches to the former Soviet Union. A chance meeting between Cohon and a Soviet delegation at the 1976 Olympic Games in Montreal started the long and difficult process to be the first restaurant in Pushkin Square. The story outlining the journey is chronicled in Cohon's book, "To Russia with Fries."
"What started as a casual conversation led to years of negotiations and culminated in the opening of the first McDonald's in Russia," Cohon said in a news release. "Initially people were skeptical about whether McDonald's would work in Russia; I'm very proud to say that since opening 20 years ago, we have served more than 2 billion customers, which is a testament to the great work and dedication of our Russian employees."
Impact on Russia
McDonald's Russia now has 245 restaurants in more than 60 cities across the country with plans to open 40-45 new stores in 2010, said Khamzat Khasbulatov, president of McDonald's Russia, who started out as a restaurant manager at the Pushkin Square location.
Since opening in 1990, when the majority of raw materials had to be imported, McDonald's has made significant contributions to the development of Russia's foodservice and processing industries as well as the country's agriculture and business practices. Currently, over 80 percent of raw ingredients needed for McDonald's Russia restaurants are purchased from independent Russian suppliers, all of whom adhere to McDonald's strictly controlled quality standards.
McDonald's Russia employs more than 25,000 people and creates on average 100 new jobs for local people with each new restaurant opening. In 2010, with plans to accelerate the pace of growth by 20 percent, McDonald's Russia is expected to add a total of 4,000-4,500 new job opportunities for local citizens.
In 2004 McDonald's contributed to the foundation of Ronald McDonald House Charities in Russia. Since then, RMHC Russia has donated more than 330 million rubles to local charities. RMHC's main legacy is the Ronald McDonald Center — a sports and health facility for children with disabilities which is attended weekly by more than 400 children. RMHC opened 10 Family Rooms in medical institutions in different cities across Russia to offer comfort and support for families of children undergoing long term medical treatment. More than 34,000 children with their families stayed there, benefiting from the home-away-from-home atmosphere.
International growth plans
McDonald's Russia was among the company's top performing European markets for the company in its recent fourth quarter earnings. For the most recent fiscal year, global comps were up 3.8 percent: U.S. comps were up 2.6 percent, Europe up 5.2 percent, and Asia/Pacific, Middle East and Africa (APMEA) up 3.4 percent.
The 40-45 news stores planned for Russia in 2010 are part of the company's $2.4 billion investment in capital expenditures, including 1,000 new restaurants around the world — roughly 500 in Asia Pacific, 250 in Europe and 150 in the United States. The remaining portion will go toward reimaging more than 2,000 existing locations, with most in Europe.
The company also is gearing up to celebrating its 20th anniversary in Shenzhen, China, with a new brand concept called "Make Room for Happiness," according to Reuters. McDonald's plans to focus on expanding its drive-thrus in China as well as build its franchise numbers in China in the coming years.
This year, McDonald's plans to open about 150-175 stores in China.
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