E-commerce
The Saga of McDonalds and Its Replacement in Russia
The Saga of McDonald's and Its Replacement in Russia
Are there McDonald’s in Russia?
Unfortunately, the iconic fast-food giant McDonald's no longer operates in Russia. Due to severe sanctions, McDonald's was forced to sell its business to its former local partner, leading to a fascinating transformation.
McDonald's Exit and the Birth of MakDak
The Russian brand that now bears the mantle of McDonald's is called “Вкусно - и точка / Vkusno i tochka” (Tasty full stop). It is a playful play on words that evokes nostalgia for many. Interestingly, these restaurants are often referred to by the name “MakDak” – a reference to Scrooge McDuck from the classic animated series, DuckTales. Interestingly, “McDak” sounds very similar to the original brand, but with a twist of local flavor.
Although the new establishment is changing its menu to some extent, opting out of offering Big Macs due to the copyright on the recipe, they still keep the tradition alive by serving picture books in their combos instead of toys. This is a nice gesture that preserves some of McDonald's nostalgic appeal for children.
Presentation of a Vkusno i tochka Restaurant: The following image shows a typical Vkusno i tochka restaurant. Notice how it maintains a similar yet distinct aesthetic to the former McDonald's branches.
Historical Perspective of McDonald's in Russia
McDonald's first entered the Russian market in 1990, setting up shop in a bustling area in Moscow where people would line up for hours to taste the Western fast food. The brand quickly became a cultural phenomenon, attracting legions of devoted fans.
Market Success and Growth
The First Year: From its humble beginnings in 1990, McDonald's grew to become a prominent fast-food chain in Russia. Just two years later, in 1992, the first Moscow restaurant was established, drawing impressive crowds. By the end of 2018, McDonald's had 660 restaurants in Russia, with 126 located in Moscow, serving approximately 1.5 million people daily.
The chain's success was reflected in its market share, which was estimated at around 25%. Currently, plans were in place for an additional 60 restaurants to open in 2019, making McDonald's a significant player in the Russian market.
McDonald's Evolves in Russia
According to Mark Karen, the head of McDonald's in Russia, changes are on the horizon. Shifting towards digitalization, McDonald's plans to introduce digital menus where customers can place orders, and then have their food delivered to the table by waitstaff in green shirts. This service will be rolled out to most McDonald's restaurants in Russia by the end of 2019. Currently, the digital service has been implemented in 210 out of 650 points, and the company is increasing its investment in the Russian market by 40%, adding to the 60 new restaurants that will be opened.
Other Fast Food Chains in Russia: In addition to McDonald's, other fast-food chains like KFC and Subway have also made their mark in the Russian market. However, how many McDonald's equivalents there are in other cities can remains uncertain, as many smaller urban centers may not have established franchises yet.
McDonald's Beyond the Restaurants
McDonald's has also ventured into digital payment options. In December 2017, Burger King in Russia started accepting QR-code payments via WebMoney in 600 establishments of its network, indicating the changing landscape of fast-food consumption in modern Russia.