McDonald’s replacement restaurants are unveiled in Russia

McDonald’s replacement restaurants are unveiled in Russia



CNN
 — 

The golden arches and Big Mac may have gone, but Russians saw 15 McDonald’s restaurants reopen on Sunday under new branding and ownership, according to its owner Alexander Nikolaevich Govor.

The American fast-food giant has been renamed “Vkusno & Tochka,” which translates to “Tasty and that’s it.”

The company, which has Oleg Paroev serving as director general, plans to open 200 branches by the end of June and all branches by the end of the summer, according to a press release.

“If you recall, in May, McDonald’s announced they were removing their businesses from Russia. I am very proud that they chose me to continue developing this business. That means the company views me as someone who fully shares all the principles of business and values of McDonald’s,” Govor said at a press conference.

“I won’t hide the fact that I am an ambitious man, and so I am not just going to simply open up all 850 restaurants but I am going to develop new ones as well,” he said.

According to a press release, 62,000 former McDonald’s employees were also retained.

A McDonald's restaurant is shown closed following the military invasion of Ukraine on April 14, 2022 in Belaya Dacha, outside of Moscow.

The rebranding coincided with Russia Day, a holiday marking the country’s independence. It took place at the same location in Moscow’s Pushkinskaya Square, where McDonald’s opened its first Russian restaurant on January 31, 1990.

On the first day, 30,000 people were served – a McDonald’s record for an opening day, the CBC reported at the time. The location even had to stay open for hours later than planned because of the crowds.

About 630 employees were chosen out of 27,000 applicants, according to a 1990 Washington Post article.

“Approximately 32 years ago…there were a lot of people on Pushkinskaya Square, when the first McDonald’s franchise opened here in Russia. It caused quite the craze. I think the craze will be just as big with this new chain of restaurants, with a new owner, a real entrepreneur,” Alexei Alexeevich, the Head of the Department of Commerce of Moscow, said during a press conference on Sunday.

An employee cleans a self-ordering machine at the Russian version of a former McDonald's restaurant before the opening ceremony, in Moscow.

McDonald’s subsequently expanded its reach within the country and as of early March, there were about 850 locations operating in Russia.

However, the chain decided to leave the country and sell its Russia business, in line with many other Western businesses following Russia’s invasion of Ukraine, which began in February.

McDonald’s accepted a charge of almost $1.4 billion after the sale to Govor, Reuters reported. Paroev has said other franchises could work under the new brand, but the traditional McDonald’s brand will leave the country.

Russia’s anti-monopoly service said the chain could elect to buy its restaurants in Russia back within 15 years, although many terms of the sale to Govor are still unclear, Reuters also reported.

An employee prepares fries in the Russian version of a former McDonald's restaurant.

“If the opening of McDonald’s in 1990 symbolized the beginning of a new era in Soviet life, one with greater freedoms, then the company’s current exit represents not just a closing down of business, but of society as a whole,” Darra Goldstein, Willcox B. and Harriet M. Adsit professor of Russian, emerita, at Williams College, noted at the time.

The company’s new logo shared with CNN has “the main symbols of the restaurant” depicted on it — what is supposed to be two sticks of yellow fries and an orange burger. The green background, the press office told CNN, symbolizes “the quality of products and service that guests are accustomed to.”

The company's new logo shared with CNN has

Consumers flocked outside what used to be McDonald’s flagship store in central Moscow on Sunday, Reuters reported.

Although “Vkusno & Tochka” does not offer some of the most recognizable items on the McDonald’s menu – including a Big Mac – customers could still purchase a double cheeseburger for 129 roubles (about $2.30), compared with roughly 160 under McDonald’s, and a fish burger for 169 roubles, instead of about 190 rubles previously.

Despite the some of the menu changes, the composition of the burgers and the McDonald’s equipment remains the same, said Alexander Merkulov, quality manager at the new company.

An employee gives a customer his food order at a Vkusno & Tochka restaurant in Moscow, after the opening ceremony.

CNN’s Fred Pleitgen was at the opening and spoke to Sergey Vlasov, a 19-year-old patron who was donning a “Z” hat – a reference to a symbol used by Russian troops amid the war in Ukraine.

Vlasov told CNN he didn’t think it was a contradiction to be showing his support for Russian forces in Ukraine, while eating American-style fast food.

“Food and politics have nothing in common,” he said.

Vlasov said he believes McDonald’s withdrawal from Russia is “an economic measure holding us back.”

“I see it as clear as day and I know what has to be done and I don’t mind it, I know it is just how this has to be because the rest of the world sees us as aggressors which we are, we invaded a sovereign state by law,” he added. “But also by law we protected a nation who is fighting for their own sovereignty, so there is a lot of issues right now…I am just here to enjoy some good old McDonald’s, man.”

Sergey Vlasov tucks into a double cheeseburger and fries at the Russian replacement for McDonald's in Moscow.

Artem Kirienko, another customer, told CNN that his double cheeseburger from Vkusno & Tochka was “almost the same” as the ones served in McDonald’s.

“That’s not what I was expecting,” he said, adding that he plans on coming to the restaurant at least once a week.

When asked if he thinks the rebranded chain will satisfy Russian customers, he said: “It’s ok … for these challenging times.”

Kirienko’s wife, Yekatarina, said that even though she’s not a fan of McDonald’s, she was keen to try a hamburger from Vkusno & Tochka because of the novelty surrounding the rebranded chain.

“It is nice to have it, just to go and eat sometimes,” Yekatarina told CNN.

However, she said she’s skeptical of whether or not the new restaurant will live up to the expectations of its customers.

“I think we should take a look how it would be, how it will work, will people like it or not, I think it is not a good idea because Mcdonald’s is a history, it’s a brand,” she said.

An earlier version of this story incorrectly stated how many McDonald’s restaurants reopened on Sunday. It was 15.

Ikea’s restaurants were failing. Then it turned to Swedish meatballs

Ikea’s restaurants were failing. Then it turned to Swedish meatballs


New York
CNN Business
 — 

Ikea is regarded for sprawling showrooms, inexpensive flat-pack home furnishings and, of course, Swedish meatballs.

The retail huge sells additional than a billion of its trademark Swedish meatballs at cafeterias in shops every calendar year. The meatballs have develop into a symbol of Ikea’s welcoming Scandinavian model picture and central to the retailer’s approach of maintaining consumers browsing inside of shops for several hours — and finding them to decide on up a new mattress or couch just after they finish ingesting.

Meatballs are “the greatest sofa-vendor,” Gerd Diewald, who led Ikea’s US foods functions at the time, mentioned in a 2017 interview.

But meatballs weren’t on the menu when Ikea opened its first in-retail outlet cafe in 1953 in Älmhult, Sweden. There was just coffee and cake. As Ikea grew, it started off featuring regular Swedish dishes these as potato mash and sausage. Still no meatballs for a while, nevertheless.

Ikea sells more than 1 billion meatballs annually.

Ikea at last debuted its meatballs in 1985, adhering to an overhaul of its menu and cafe operations.

But the masterminds of Ikea’s meatballs by no means expected them to turn out to be a sensation.

“I would hardly ever have imagined 40 a long time later on people today would be contacting me about it,” stated Sören Hullberg, who led Ikea’s foodstuff revamp at the time.

In actuality, suppliers Ikea approached to produce its meatballs ended up skeptical of its system, Hullberg said: “Why must a home furnishings vendor abruptly acquire meatballs and send out them throughout the world?”

Ikea turned to meatballs right after it confronted struggles offering food.

Company founder Ingvar Kamprad, who began Ikea as a mail-order business (Ikea’s identify will come from his initials and the farm and village wherever he grew up in Sweden), felt that the company’s dining places have been a “mess,” Hullberg claimed. “He was not satisfied with the high-quality and the graphic.”

At the time, Ikea experienced all-around 50 merchants all over the world. Kamprad nervous that Ikea was getting rid of consumers who were finding hungry when they wandered all-around Ikea’s maze-like suppliers and leaving to get a chunk to eat.

Kamprad, who died in 2018, envisioned dining establishments in outlets as a put where by customers could sit down, try to eat and approach how to embellish their residing rooms with Ikea wares.

Hullberg, then an Ikea keep manager, experienced gotten shut to Kamprad and was tapped to generate a new idea for all of Ikea’s dining establishments — everything from kitchen strains to the menu to instruction staff. He and a group of 4, together with a chef recruited from a substantial-end cafe in Stockholm, went to do the job on building a restaurant that would be an extension of Ikea’s Swedish brand id and thrifty name.

The meatballs were not Ikea founder Ingvar Kamprad's idea.

“Our mission was to make positive that no one remaining an Ikea keep because of currently being thirsty or hungry,” he claimed.

At the time, a standard Ikea shop was serving up to 5,000 customers a day. To simplify functions and retain expenses down, the menu would have to be minimal. And due to the fact the menu would be comparable at suppliers in distinctive nations around the world, Hullberg’s group appeared for food items that were well known throughout distinct cultures.

Meatballs, a mainstay of Swedish eating plans, in shape the monthly bill.

“We were hooked on that 1,” he stated. “Even if it’s not seriously a Swedish innovation, meatballs exist in each culture you arrive to.”

Meatballs ended up also productive to freeze, transport and immediately get ready at Ikea’s kitchens.

Even though in Sweden “there are as lots of recipes of meatballs as there are people eating them,” Ikea required to land on just one recipe since it was outsourcing manufacturing. Earning them in-residence would have been too complex for the volumes Ikea essential.

Ikea’s chef came up with a recipe that was two-thirds beef and a person-3rd pork, but Kamprad, the founder, preferred the meatball to be mainly from pigs.

“We gained that struggle simply because it was simpler to export meatballs containing a vast majority of beef than pig,” Hullberg mentioned.

In addition to meatballs, the new menu also showcased Swedish staples this sort of as salmon and roast beef, and more compact plates like salads and sandwiches.

Hullberg, 71, still left Ikea in 1992. But he however stores there and stops by the cafe to examine out his brainchild.

Nowadays, Ikea has various meatballs — the unique 1, rooster, salmon, vegetarian and a more recent plant-based mostly meatball. They’re served with mashed potatoes, product sauce, lingonberry jam and vegetables. Ikea also sells frozen meatballs shoppers can just take dwelling.

The meatballs survived a damaging remember in 2013 after traces of horse meat have been identified in a batch in Europe. In the course of the Covid-19 pandemic, Ikea shut down its eating places and introduced the recipe for clients to cook them at property.

The cafeterias exactly where meatballs are usually served are positioned around the middle of the store — not far too close to the entrance or the exit.

There’s a method involved right here, according Alison Jing Xu, an affiliate professor of advertising at the College of Minnesota’s Carlson School of Management who scientific studies client conduct and the impression hunger has on getting conclusions.

Ikea doesn’t want to feed you right absent, in its place preferring that you function up an urge for food whilst you store and then check out the cafe to take a split, Xu mentioned.

When you are hungry, your mind is centered on obtaining meals. This can spill about into buying other products and solutions, she claimed. Xu’s research has identified that hungry mall customers spent 64{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} much more money than consumers who had been now whole.

When Tiare Sol, an Ikea shopper in Sacramento, California, and her family members visit the retail store, “almost anyone ends up purchasing the meatballs.”

“They’re mouth watering,” she stated. “They have a plant-dependent one which is awesome simply because I’ve been making an attempt to reduce down on taking in meat and dairy.”

For Sol, taking in Swedish meatballs at Ikea is portion of the practical experience: “The meatballs are kind of iconic for Ikea. It is just what you do.”

UK Covid: London bars and restaurants shut down as Omicron rips through the nation

Dining establishments and other venues are in its place determining they have no option but to near early for Xmas thanks to a flood of canceled reservations and worries about the overall health of staffers.

Ferhat Dirik, the co-operator of east London’s Mangal 2 restaurant, stated he resolved to shut a 7 days previously than prepared because of misplaced bookings and the “common uncertainty in the air.”

“It is really impacting staff morale, and it is impacting us projecting any sensible profits that could justify this,” Dirik explained to CNN Organization.

The closures are a new menace to the economy and a headache for federal government, approximately two years into the pandemic. They indicate that when instances are significant ample, men and women are nevertheless eager to steer clear of heading out, in spite of common pandemic exhaustion. When the federal government has stopped brief of restricting social activity, England’s Chief Healthcare Officer Chris Whitty has recommended men and women not to combine with others unless absolutely needed.

But contrary to during past Covid waves, state assist for enterprises has dwindled, leaving the hospitality field in the lurch around a essential period of time. The foyer group UKHospitality estimates that its users make a quarter of their annual income in excess of Christmas.

“So substantially rested on this December period of time for firms already staggering under a burden of personal debt incurred from the pandemic and going through growing fees across the board,” Kate Nicholls, the head of UKHospitality, reported in a assertion. “If operators are not able to trade profitably in excess of the next thirty day period, quite a few will only not endure.”

‘Lockdown by stealth’

British isles finance minister Rishi Sunak on Thursday slice quick a excursion to the United States since of the deteriorating condition back again residence.

“I realize the fears of organizations at the second specified almost everything that’s heading on. That is why I’ve been in contact with hospitality sector leaders these days, my crew internet hosting roundtables and talking to them,” he instructed CNN’s Richard Quest. But Sunak offered no trace of guidance for the hospitality field past existing actions these as reduced costs of profits and local organization taxes.

“I believe it is really vital to identify, as the primary minister mentioned before today, that the predicament is extremely unique to what we have carried out and encountered just before. The federal government is not telling men and women to cancel issues. It really is not closing down corporations,” Sunak additional.

The timing is building matters worse for everyone. Men and women who experienced prepared dinners or drinks out are now bailing due to the fact they don’t want to hazard paying Christmas sick or in isolation, as a substitute of with their households.

According to reservation details from OpenTable, Uk bookings plunged 24{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} on Tuesday and 22{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} on Wednesday as opposed to 2019. Globally, bookings fell 18{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} and 15{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, respectively.

Employees who perform in hospitality are likewise involved about mounting concentrations of bacterial infections amongst colleagues.

“The key reason was the group. We did not want anybody else to get ill,” mentioned Bash Redford, the co-owner of south London’s Forza Wine.

He mentioned that on Sunday evening, two men and women had coronavirus on his workforce of 31. By Wednesday early morning, 8 experienced contracted it — and Redford made a decision it was needed to limit threats for the relaxation of the team. Forza Wine introduced it would near from Wednesday by Xmas.

Britain's nightmare economy of the 1970s may be making a comeback

Restaurants usually are not the only types struggling with a crunch. In a assertion Thursday, the Modern society of London Theatre warned of a “demanding predicament” across the region.

“Whilst ticket income remain strong for the Christmas time period, present cancellations thanks to cast and crew health issues — compounded by Covid-associated audience refund and exchange requests — is making an more and more bleak outlook for venues more than the up coming few important months,” the marketplace group said.

The United Kingdom claimed an all-time large of 88,376 coronavirus instances on Thursday, as public well being officials alert that cases of the Delta variant are “remaining rather secure in quantity” even though Omicron “is expanding very swiftly.” In London, it is previously the dominant pressure.

So significantly, Primary Minister Boris Johnson has avoided rolling out more critical limitations, in its place encouraging people to operate from household when possible, mandating masks and requiring evidence of vaccination or a negative Covid-19 take a look at to enter golf equipment and significant sporting functions.

Johnson, whose bash has just experienced a shock midterm election defeat, explained Thursday that instead than “locking things down” the Uk govt is inquiring individuals to “be cautious” and “feel about their functions in the run up to Xmas.”
But he faces criticism from the hospitality market that this tactic quantities to imposing a “lockdown by stealth” — this time without having any financial assist.

“It’s an additional large hit on the field by sending these blended alerts — by telling men and women not to dine out but also presenting no assurances for enterprises,” Mangal 2’s Dirik reported.

An additional financial strike

Paul Donovan, main economist at UBS Worldwide Prosperity Management, claimed this “voluntary collapse in leisure and services” forward of Christmas could have a big result on the financial restoration, which was already stalling as inflation surges. The United Kingdom’s gross domestic products grew by just .1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} in October, with output nonetheless .5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} beneath its pre-pandemic level.

“There is no federal government assistance this time, so there is an affect,” Donovan reported.

A person large issue in the close to phrase is regardless of whether restaurants that make a decision to shut earlier than prepared will continue to pay back employees. If not, staff will “instantly get an earnings fall,” Donovan stated.

Mangal 2 is continue to “hunting at the selections” as it weighs “what’s morally suitable as nicely as fiscally viable.” Redford explained Forza Wine’s staff will be paid out this month, and there’s sufficient hard cash on hand to guarantee they are going to also be compensated in January and February. After that, although, the outlook receives murky.

Ultimately, the magnitude of the economic hit will count in substantial portion on how lengthy people concentrate their spending at residence in its place of on actions this kind of as dining out, Donovan mentioned. That will rely both of those on the measures the governing administration normally takes and the training course of the virus.

The excellent news, he claimed, is that businesses have gone via this prior to, and have procedures for selling food stuff to-go and delivering food kits. If they need to go this route all over again, eating places and pubs will have reduce set-up costs.

But for now — with coronavirus scenarios skyrocketing, and a different holiday break time spoiled by the pandemic — the mood is grim.

“People today are definitely terrified,” explained Redford, who had been arranging to open up two new places in 2022. “Like truly, actually frightened.”

— Walé Azeez contributed reporting.