McDonalds Puts Operations On a Break, In Russia.
Mc Donald’s has, shut down in Russia after facing a global backlash, which is big news for the Russian consumers.
On Friday, the chief of New York’s State Pensions fund wrote to Mc Donalds, along with other global brands insisting upon the shutting down of its branches in Russia. On March 8 Mc McDonald’s made a statement that all 847 of its restaurants would temporarily be closed in Russia. The step was taken to put pressure on different brands to stop operating in Russia, following the invasion of Ukraine. McDonald’s made a statement that they would continue to pay a wage to their 62,000 employees in Russia, the reason is the following of other brands as Mc Donald’s is a global brand and consequently all brands follow its decisions.
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“If they decide to do something, then probably others will follow,” said international franchise consultant William Edwards.
Brands like Pepsi Co Inc and Mc Donald’s were being pressured by consumers and investors to withdraw from Russia as a result of which the soda supplies have been halted, but milk products of course for survival are being supplied.
“It’s impossible to predict when we might be able to reopen our restaurants in Russia,” McDonald’s CEO, Chris Kempczinski.
Following the invasion of Ukraine, the pressure was upon all on these brands and social media trends began urging such as the following:
#Boycott Mc Donald
#Boycott Pepsi
The reason is to make sure this forces Russia, into giving in to external pressure and to corner the nation completely if that is refused. Especially if the media starts criticizing the brands, who are doing businesses with the country that is slaughtering people, that would be a great setback for the business overall so to save their brand image, reputation, and sales they have temporarily halted all operations. Let’s see how it all unfolds over time, and whether or not these brands will find themselves operating in Russia.