Hotline: 1800 102 2007
X
Search Business Opportunities
Aug, 24 2015

McDonald\'s expands operations in Russia, to compete with Subway

The agreement will also help the burger chain compete with Subway which already has over 78 franchises in the region and is dominating McDonald\'s in the number of global restaurants.

McDonald's has announced a license agreement to open restaurants in Siberia, extending the status of US corporate dominance, between Russia and the US.

The fast food company released a statement confirming that the deal would see Russian company GID LLC open around 20 fast-food restaurants in the Novosibirsk, Tomsk, Kemerovo, and Altai regions in the nearest future.

Earlier only one franchise agreement has been made in Russia with a restaurant in St. Petersburg's Pulkovo airport.

McDonald's has more than 500 restaurants in 125 cities in Russia however franchise agreement could pave the way for more Russian business to take up the opportunity.

The agreement will also help the burger chain compete with Subway which already has over 78 franchises in the region and is dominating McDonald's in the number of global restaurants.

Khamzat Khasbulatov, President of McDonald’s Russia said that the “agreement with GiD will help enhance the McDonald’s brand in Russia, build the business over the long term and further strengthen the relationship with our customers”.

McDonald’s, last summer faced regulatory pressure when Russian authorities carried out unannounced inspections and enforced temporary closures at 200 McDonald’s restaurants for what it claimed were sanitary violations.

The checks coincided with an increase in tensions with the US over Ukraine and so McDonald's hopes that the franchise deal will help the company to expand in the region while preventing further trouble given that they will be Russian owned franchises.

Comment
Related opportunities
  • Healthcare Products
    MICROSIDD India Private Limited is registered under Ministry of Commerce,..
    Locations looking for expansion Karnataka
    Establishment year 1999
    Franchising Launch Date 2016
    Investment size Rs. 10lac - 20lac
    Space required 200
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Bangalore Urban District Karnataka
  • E-Commerce & Related
    About Us:   India's First e-Commerce platform to take MOM &POP stores..
    Locations looking for expansion Maharashtra
    Establishment year 2017
    Franchising Launch Date 2018
    Investment size Rs. 50lac - 1 Cr.
    Space required 500
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Pune Maharashtra
  • Professional Education coaching
    About: ICA was founded in 1999, and began its journey with..
    Locations looking for expansion Delhi
    Establishment year 1999
    Franchising Launch Date 2018
    Investment size Rs. 10lac - 20lac
    Space required -NA-
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New delhi Delhi
  • Men's clothing
    T-Store is a wing of Relion Industries in the field..
    Locations looking for expansion Gujarat
    Establishment year 2010
    Franchising Launch Date 2018
    Investment size Rs. 10lac - 20lac
    Space required 50
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Ahmedabad Gujarat
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities

Free Advice - Ask Our Experts