McDonald\’s Russia Strives for Success While Big Mac Stumbles Under Price Pressure

McDonald\’s Russia Strives for Success While Big Mac Stumbles Under Price Pressure

What Happens When the Big Mac Gets a Russian Make‑over

When McDonald’s decided to pack up its Russian empire in May, the result was a brand shuffle that turned the golden arches into a new garnish called Vkusno & tochka – literally “Tasty and that’s it.” With a fresh logo, a pop‑of‑color menu, and the disappearance of any trace of McDonald’s trademarks, freshfangy local operators were ready to roll out their own fast‑food destiny.

One Day, One Bite, 120,000 Burgers

On the fateful opening days of June 12th and 13th, 50 shops around Moscow opened their doors. The flagship pop‑up in Pushkin Square welcomed thousands of hungry crowds, and the receipts were nothing short of astonishing: just one day, the new chain sold nearly 120,000 burgers. A record that even the original McDonald’s had never hit during its decades in Russia.

CEO Oleg Paroev Looks Ahead

  • Paroev is excited to expand the menu beyond the iconic Big Mac and McFlurry – the brand is now shaping its own ramen, tacos, and maybe even a vegan burger. However, he’s been honest that switching suppliers and ingredients is no small feat.
  • He’s also juggling the challenge that other franchises are still using the McDonald’s name and logo, a sticky leftover from a complex exit process.

Meeting the Growth Target

The next big push? Ramping up the store count to 1,000 venues within four to five years – a leap from the 850 that McDonald’s had back in its tail‑wind. Paroev says the first‑day surge is not sustainable, but he’s determined to push the new brand past the target before the “roadmap” says it should.

Big Brother? No, Just a Partner

Sberbank has already entered the partnership fold—to help finance expansion and keep the local economy thriving. Though Paroev is clear, Sberbank won’t be a shareholder; it’s more of a strategic ally than a company‑owner.

In short, the Big Mac’s Russian chapter might be closing, but the flavor of local fast‑food is just getting started. With a record start and ambitious plans, Vkusno & tochka is cooking up a new chapter in how we’re served—a tasty, fast, and decidedly new way to grab a quick bite.

McDonald’s return?

<img alt="" data-caption="People visit the new restaurant "Vkusno & tochka", which opens following McDonald's Corp company's exit from the Russian market, in Moscow, Russia, on June 12, 2022.
PHOTO: Reuters” data-entity-type=”file” data-entity-uuid=”25f32788-ac45-447b-b048-43e26a0f51bc” src=”/sites/default/files/inline-images/220622_russia_reuters.jpg”/>

McDonald’s Takes a Leap Out of Russia

What the Deal Actually Was

Govor, the guy who once ran 25 restaurants, kicked off the launch with a chuckle and stressed that the price he paid for McDonald’s Russia was nothing more than a “symbolic” sum. He also mentioned that the U.S. parent company was crystal‑clear: no one was about to hit the 15‑year buyback button.

During the same event, Paroev let it drop an opinion: if Vkusno & Tochka ever became a franchisee again, McDonald’s could stroll back into Russia. He didn’t want anyone else to read that as an upcoming partnership—he kept it very much as a personal two‑person thought.

McDonald’s Official Stance

  • In a terse email, the corporation announced that it has finalised the sale of its Russian business and has effectively exited the market.
  • No further discussions have been announced concerning a possible return, at least for now.

Bottom Line

In short, McDonald’s is parking once again in Russia’s kitchen—no charcoal, no fries, just a clean sweep. And the future? Well, anybody who thinks the chain will be back might want to wait until all the paperwork is signed and the new franchise agreement is inked.

Franchise conundrum

When Big Macs Go Rogue: The Franchise Fiasco

Picture this: you stroll into a fast‑food joint, the familiar scent of fries humming in the air, and there’s a sleek digital menu proclaiming the arrival of the Big Mac. Only, this one is being sold under a different name—yet every graphic, font, and mouth‑watering picture still screams McDonald’s. It’s like the boring uniform of a schoolboy wearing a halo’s halo.

What’s the Big Deal?

Some former McDonald’s franchise owners have kept the old branding on everything from packaging to the neck of the counter’s electronic display. Instead of saying “Big Mac,” they’re now calling it something like “Big Mac‑Prime” or “Mega Big.” The result? A tangled legal web that’s pushing a budding Russian gourmet chain, Vkusno & tochka, into a sticky mess.

A Whisper from the Front Lines

“Of course, we’re not happy about this,” Paroev sighed, as the brand embroiled itself in a maze of trademark confusion. She and her team are practically staring at posters that read “McDonald’s” while serving up rival products with a brand name that feels like a thin wrapper around a truth.

Key Points to Remember

  • Front‑line franchisees keep McDonald’s branding on all menu elements.
  • They rebrand the hamburger but cannot shake the original logo.
  • The move has stirred legal and brand identity headaches for Vkusno & tochka.
  • Paroev’s team is grappling with how to protect their own brand’s clarity.

In a world where consumers are always willing to chase the next meat‑delicious mystery, brand confusion can be as perilous as a skittled outline on a cash register. The Big Mac saga reminds us that when you mix up names, you’re not just mixing people’s taste buds—you’re entangling legal standing too.

<img alt="" data-caption="The McDonald's logo is covered by fabric at a restaurant run by a franchisee at Finlandskiy railway station in Saint Petersburg, Russia, on June 15, 2022. 
PHOTO: Reuters” data-entity-type=”file” data-entity-uuid=”12314137-6f3e-46c3-8fb7-10f7359ebb13″ src=”/sites/default/files/inline-images/220622_mcd_russia.jpg”/>

McDonald’s in Russia: Legal Fumbles and Lost Menu Mysteries

Picture this: a bunch of restaurants out in train stations and at a busy airport in St Petersburg still serving food under the McDonald’s name. Fun at first, but then… turns out the giant chain doesn’t actually own the rights to the brand in Russia.

Who’s Got the Legal Power?

It turns out that even if a place hires the McDonald’s brand, the original company has no legal claim over it in the Russian market. That means the fast‑food giant can’t really go after the places using its name.

Rosinter Restaurants: The Silent Players

Rosinter Restaurants, a former franchiseie, keeps sailing. They’re still alive in the backrooms of train stations and at the Pulkovo airport. When we asked them for a comment, they stayed quiet.

Enter Vkusno & tochka

Vkusno & tochka, a new venture, quietly nudged ex‑franchisees to join their brand. One even shook hands with them.

Numbers That Bother

Paroev claimed that bestial Govor sold about 700 restaurants. That leaves roughly a hundred hanging without a clear fate. While Vkusno & tochka still has its old supplier connections, the other former franchisees—well, they’re left without that golden ticket.

What’s on the Menu?

“It’s a mystery to me what products are sold there,” Paroev mused on Friday, describing the train station and airport spots. “But I can say with certainty that it is absolutely not the same products or ingredients that were previously sold at McDonald’s.”

So, while the fast‑food giant may think it’s covering its own, in Russia the branding game is a lot more complicated—clearly, a lot of those chicken nuggets and fries might not even be the real thing.

Supplier headache

Vkusno & Tochka Faces Flavor Challenges Amid Sanctions

Rivera Paroev, the mastermind behind “Vkusno & tochka,” is on a culinary mission: keep the same mouth‑watering taste while juggling a dash of global ingredients that can feel more like a logistical circus than a pantry.

Cracking the Ingredient Puzzle

  • Local vs. Global: A whopping 99% of the goodies come from Russian suppliers, but that “significant percentage” of extras still travels overseas.
  • Sanctions Saga: Trade restrictions add a twist to the usual supply‑chain puzzle—think of it as trying to bake a cake while your oven keeps misbehaving.
  • Supply Chain Shuffle: Disruptions make it feel like a game of whack‑a‑mole, but the team’s staying on their toes.

Cash‑Cows and New Drink Partners

Vkusno & tochka is looking for a new beverage supplier now that Coca‑Cola’s Russian stash is drying up. A splash of India comes in as a coffee mix‑designer, courtesy of an investor riding the horse of Finland’s Paulig roll‑over. Talk about international flavor mash‑up!

Big Macs Are on the Menu—But Not So Soon

With Mcdonalds in the mix, the classic recipes don’t get to stay the same. A Big Mac replacement is cooking behind the scenes, but Paroev warns it’s a big loss for the brand that many patrons will feel acutely.

“The fact it’s now gone from the menu does not help us.” – Rivera Paroev

Warning: Adapting to the New Name

Yes, establishing a fresh brand vibe takes time. But Paroev’s upbeat mantra: “Guests will gradually get used to the new name, and we’ll explain that they’re not at a ‘Mac’ anymore but at a ‘tochka’.” A gentle guide to keep loyalty on track, one delicious bite at a time.