Forbidden burger: what McDonald's problems in Russia are associated with

Mass examinations led to the closure of the oldest chain restaurants in Moscow and other regions. What is behind this, sanctions or competition?
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Frosty December day in 2010 around the McDonald's restaurant at Pushkin Square lined pickets of local residents. Activists of the "Coalition for Moscow" blocked the supply of products and garbage to make the restaurant is closed. By prescription Rospotrebnadzor on its premises could be no more than 50 seats, and it was 12 times more - 600. The company appealed the injunction and won all courts.

In August 2014 Rospotrebnadzor could suspend for 90 days the work of several restaurants McDonald's, including the oldest in the Bolshaya Bronnaya. One of the claims, except for improper storage of products, has become the same mismatch area power companies. And this time the courts upheld hygienists. What is the difference between the two cases?

McDonald's has always been famous for its cleanliness and attention to the requirements of sanitary inspectors.

However, since August 20, sealed doors were twelve restaurants across the country. Now six of them - in Stavropol, Krasnodar and Sochi - reopened. At the same time on Thursday, September 4, Yekaterinburg suspended work of the second restowound McDonald's.

By closing the restaurants began to grow again.

Olga Golodets, Deputy Prime Minister for Social Affairs, assured that the total of checks will not, however, from the regions began to receive news that is already checked half the restaurants (there are more than 450 in Russia). Is McDonald's came under an undeclared part of the sanctions? Whether it was the initiative of Rospotrebnadzor, which is increasingly used in international conflicts Russia to put pressure on companies from rival countries? Perhaps a campaign launched against American fast-food competitors?

The permanent CEO of McDonald's in Russia Khamzat Khasbulatov declined to comment for this article.

And one of the biggest players in the market of fast food sent its franchisees requirement "in connection with the aggravated situation regarding our company McDonald's direct competitor, and increased media attention to the closure of restaurants of this network ... to refrain from commenting."

Hamburger Olympics

The founder of the Canadian network of McDonald's George Cohon began negotiating a sponsorship Moscow Olimpiady-80 four years prior to its discovery, but because of the Afghan war and the international boycott of the Games, talks broke down. The agreement with Moscow on the establishment of the Moscow "daughter" and the opening of the restaurant was only signed in 1988. Canadians got in the joint venture "Moscow-McDonald's" 49% and committed at their own expense to repair and equip the premises.

Two years later, January 31, to the doors of the first restaurant lined up all the thirty. People did not stop nor cold, nor biting rates: Big Mac cost 1.5 rubles, with an average salary in the country, about 150 rubles.

In 90 years, Moscow has not held on to its stake in the company, properly nourished its inhabitants and visitors. Relations with the West are on the rise, and will go in 1996 offer Canadians increased their share to 80% of the metropolitan government decided favorably. Moreover, the Russian party to the joint venture company "Mosrestoranservis" allowed to add to the charter capital of the right to lease buildings in Moscow for $ 1.2 million At the same time Moscow authorities have written to the Resolution of the Monetary Fund replenishment of the city's intention to sell the remaining stake in the joint venture, which was estimated at $ 29 million.. <br />
The former president of the Bank of Moscow Andrey Borodin told in an interview to "Kommersant" that it was his assessment and he led the negotiations.

Canadians want to buy a bag for $ 3 million, but "we have to work a little, and ultimately the cost of the transaction amounted to almost $ 30 million," said the banker. The transaction was completed by 2005. By this time it was McDonald's 125 restaurants, 60 of them in Moscow. Regional development was engaged in company "McDonald's", "daughter" of the Dutch Golden Arches European Holdings BV

Race Leader

"Mosrestoranservis" (MRS) was created not only to participate in a joint venture with the Canadians. Through him, the Moscow authorities have invested in other networks and restaurants - Pizza Hut (51%), Baskin the Robbins (50%), "Pyongyang" restaurants (50%), "Hanoi" (50%), "Manila" (10%) . However, since 1995 the main task of the MPC was the creation of a purely domestic competitor McDonald's - network "Russian Bistro".

Obschepitovskie points is clearly not enough, and the rapid growth and extraordinary popularity of American brand started to annoy the mayor Yuri Luzhkov.

In its Russian network forhe and a few other officials have patented several recipes pie, pies, and fruit drinks, $ 15.6 million was invested in the first two years. MRS allowed to fund "Russian Bistro" from dividends received from joint ventures.

The first bistro with fanfare opened not far from City Hall and, respectively, near the McDonald's. However, neither the unprecedented money for such a project, nor the support of the authorities did not help. Having opened 40 restaurants, after the crisis of 1998 the network began to stagnate, and the inclusion of rapidly transformed "bistro" in Wineries in spirits menu.

Pizza Hut, a joint project with the US PepsiCo (now the Yum! Brands), too, was not successful. Two restaurants, the first of which appeared in 1992, closed after the crisis, referring to "the expiry of the lease." Less than a year later he returned with a brand partner of Singapore Talisfood and began to develop in St. Petersburg, Moscow and Kazan, but after 2011, remained only in St. Petersburg. The fate of another network PepsiCo / Yum! Brands - KFC - was similar. After opening the first point in 1993 in GUM, by 2005 it had 11 restaurants in St. Petersburg and four in Moske.

Better things went in those who ride out the economic storm of the 1990s. American Subway opened on the Neva in St. Petersburg in 2004, and Burger King and all Russia sold the first franchise operator of coffee shops "Chocolate", a group which is headed by owners Alexander Kolobov, in 2010. But two years later found a Burger King in Russia noble investor - "VTB Capital." Kolobov and "VTB Capital" refused to be called Forbes share and the amount invested in fast food, but in the IFRS group wrote reports that over 47.22% in the joint venture it had paid $ 50 million, and one of the managers reported that they are willing to invest "to $ 100 million over three years. "

In August, the owners of "Chocolate machines" bought network "Coffee House", part of which is planned to be converted into Burger King.

The market is talking about the fact that the youngest player can get around on the number of McDonald's restaurants (currently about 200). At 320 KFC restaurants, 113 of them in Moscow (of 30 franchisees). Subway overtook all the more in 2011, and now she in Russia about 700 points (about 260 franchisees), but, as requested anonymity said one of the top managers of the company, "we have a McDonald's different ayDitore and a different strategy. "

Political gigienistika

This year's competition has intensified among the fast-food leader. Rostislav Ordovsky-Tanayevsky Blanco, founder of "Rosinter Retorants Holding" (own brands "of IL Patio" and "Planet Sushi", licensed TGI Friday's and Costa Coffee, and in 2013 - the only Russian franchise McDonald's in transport hubs), said that the times of crisis "elite restaurants inferior position of the family, and the family - a fast food restaurant."

The conflict with Ukraine, the Crimea, Western sanctions and the Russian economy slowed down responses, thrashed food prices and inflation dispersed. As in the crisis of 1998 and 2008 in fast food, obviously, will start the influx of visitors. For these roads every day. And here began all-out inspection and closing in McDonald's. By September 1, closed twelve restaurants: three in Moscow and one in four in Krasnodar, Sochi, two, one - in Yekaterinburg and Stavropol. September 5 Tver Court of Moscow is not allowed to resume work at the flagship McDonald'sand Pushkin Square.

According to Mikhail Burmistrov, General Director of «Infoline-analysts" from closing only Moscow restaurants the company could lose sales to 1 billion rubles.

According to SPARC, the joint revenue of the "Moscow-McDonald's" and OOO "McDonald's" was in 2013, 63.4 billion rubles. He suffered not only McDonald's American brands. Under bans Rospotrebnadzor got whiskey Jack Daniel's Tennessee bourbon and Jim Beam.

But McDonald's fast food was the only one among.

Managing Director of consulting company "Restkon" Andrei Petrakov believes that, given the wave of Russian sanctions on Western food in the suspension of the restaurants of McDonald's "too much of a coincidence," in bans Rospotrebnadzor has a political component. On the market suspected head of Rospotrebnadzor, chief state sanitary doctor of Russia Anna Popova he said to "Interfax", that McDonald's test is not related to political events.

Still, McDonald's behaved, by Russian standards, careless.

In April, itemAfter the annexation of Crimea company launched three of its restaurants in Simferopol, Sevastopol and Yalta, offering employees work at other points in the Ukraine. But an American company - and McDonald's the only one of all the fast food chains in Russia, which is wholly owned by Americans - could hardly do otherwise under sanctions imposed by the United States a month earlier.
On the contrary, the general director of "Russian Burger King" company Dmitry Honey immediately told Itar-Tass that Burger King is going to come to Crimea. Now co-owner Kolobov said Forbes, that such a statement was not.

the market supply is not ruled out that special attention Rospotrebnadzor to McDonald's «could be caused by the interests of the Burger King». "Neither we nor our partners are not satisfied with this, - said Kolobov. - We check [McDonald's] not comment and do not have to do with them. I even do not keep track of our test. "

Burmistrov from «Infoline-analytics" said Burger King version of interest and, accordingly, "VTB Capital", "brute force". "The overall reputational damage for the whole indstriae above fast food - he says - the potential winnings of any player on the temporary closure of several restaurants competitor. " Tanayevsky-Ordovsky Blanco of "Rosinter Restaurants Holding Retorants" does not believe. How does not believe in the political component of the closure of restaurants. "I prefer to be naive - he said - and I think that this coincided with the confrontation between Russia and the West."