Dhe Kremlin has come an enormous step nearer to its dream of a Russified model of McDonald’s: The American fast-food group introduced that it had discovered a purchaser for its roughly 850 branches in Russia, specifically the Siberian entrepreneur Alexander Govor. He joined McDonald’s as a franchisee in 2014; most just lately, his firm managed 25 branches in Siberian cities. Gowor will now have to rename the shops and design a brand new menu. The American group had stipulated that the model and brand might not be used in Russia after a sale, however desires to maintain its logos in the nation.
It’s nonetheless unclear which title will exchange the golden M in the long run. In March, the pinnacle of the Duma, the decrease home of the Russian parliament, Vyacheslav Volodin, proposed renaming the fast-food chain “Uncle Vanya’s”. An organization then utilized for a patent on the title and a brand consisting of the Cyrillic letter W as in Vanya, however which seemed just like the gold M rotated ninety levels on a pink background, carefully resembling the McDonald’s brand.
The appliance was withdrawn in early April. The patent workplace defined that model names and logos which might be very comparable to the originals are fairly often registered, akin to “Thought” as a substitute of “Ikea”. However such requests had been despatched once more. Apparently, Russia doesn’t need to threat authorized disputes over trademark rights.
“KFC” and “Burger King” are nonetheless in Russia
McDonald’s, which has been highly regarded in Russia since 1990, introduced in early March that it could quickly shut its branches. Nonetheless, Russian media just lately reported that each sixth retailer, round 130 out of 850, remains to be open as a result of it’s run by franchisees. The eating places of the rivals “KFC” and “Burger King” are additionally nonetheless in operation.
The brand new McDonald’s proprietor, 61-year-old Govor, started his profession as a easy coal miner and shortly labored his approach up to the administration of the state-owned coal firm Kuznyezkugol. Within the mid-2000s, Gowor had to promote his shares in the group after severe accidents in the mines. He invested the cash in an oil and chemical firm, inns and personal clinics. Govor’s son, who’s a deputy for the Kremlin’s United Russia occasion in the household’s residence area of Kemerovo Oblast, posted a video supporting Russia’s warfare on Ukraine on Instagram in early March. His father additionally has connections to the facility occasion.
The settlement that has now been reached with McDonald’s, which nonetheless has to be transformed into last buy agreements, stipulates that Gowor will take over the staff of the branches and won’t change the circumstances of the employment contracts for a minimum of two years. As well as, Gowor should pay the salaries of the staff of the McDonald’s headquarters in Russia till they’re liquidated. McDonald’s just lately paid round $55 million a month for lease and salaries for its roughly 62,000 workers in Russia.