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McDonald’s Set for Russia Expansion

McDonald’s has just signed a major franchising deal in Russia, the first of its kind in its 25 year history in the country.

Beginning in September, McDonald’s will open a store in the city of Novokuznetsk. This will the first of 20 to be opened in the Siberia region over the next 18 months.

All of the restaurants will be opened as franchises, that account for 81% of McDonald’s outlets globally.

The news comes as a positive step for relations with Russia and Western business, which has taken a hit in the past year down to sanctions imposed between each other.

McDonald’s flagship store in Moscow was shut down last year by Rospotrebnadzor, the Russian Food Safety Authority, only to reopen within a matter of weeks. The reason was widely believed to be in response to Western sanctions placed on Russia over the annexation of Crimea. The restaurant, on Ruskin Square in the country’s capital, was also the first McDonald’s restaurant in Russia opening in 1990.

Since then, McDonald’s has opened a new store in the country every 18 days on average.

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