News

McDonald's launches franchising in Russia, smoothies in Canada

March 28, 2012

McDonald's is planning to expand into Siberia, and is searching for Russian franchisees for the first time in its 20-year presence there, according to the Moscow Times.

Target cities for growth include Novosibirsk, Tomsk and Barnaul. Up until now, franchising has not been part of McDonald's system in Russia.

According to RBK, the plan comes after both Burger King and Wendy's signed franchise agreements to expand in the country.

Wendy's Russian debut came in June 2011 in Moscow.

Burger King opened its first Russian unit in January 2010, shortly before McDonald's celebrated its 20th anniversary in the country.

A McDonald's spokesperson said it was too early to comment.

The chain has more than 33,000 branches in 119 countries, including 314 in Russia, all of which are owned and operated by McDonald's Russia.

Canadian units now selling McCafe smoothies

Meanwhile, McDonald's Canada is building on its McCafe success with the national launch of Real Fruit Smoothies. The company's goal is to establish a leadership position in one of the country's fastest growing beverage categories. The smoothie market in Canada is estimated to bring in $212 million annually.

The new Real Fruit Smoothies are made with real fruit puree, low-fat yogurt and blended ice. They come in three flavors: strawberry-banana, mango-pineapple and blueberry-pomegranate.

"From Real Fruit Smoothies, to authentic espresso-based beverages, Canadians are truly embracing our McCafe brand and telling us they're lovin' it," said John Betts, president and CEO of McDonald's Canada. "Our continued focus is on building strong beverage credentials and on gaining a greater share of the very sizeable Canadian beverage market."

McCafe Real Fruit Smoothies start at $1.99 for a snack size, including yogurt. Snack size servings are all under 150 calories and a small size includes one full serving of fruit.

As of today, more than 925 McDonald's restaurant locations across the country carry McCafe Real Fruit Smoothies and the company's remaining restaurants are expected to carry them by the end of 2012.

"We're aggressively expanding our premium beverage portfolio, while still keeping an eye on our core business – still a critical part of our enduring success," Betts said. "McCafe is where great food and great beverages intersect - truly the best of both worlds."

The launch of McCafe Real Fruit Smoothies is supported by a large multi-channel advertising campaign, including TV, radio, digital and in-store merchandising.

They were launched in the U.S. in July 2010.

Read more about franchising and growth or food and beverage launches.