McDonald’s Suspends Operations at Crimean Restaurants

Image source: Wikimedia Commons

McDonald’s has decided to suspend operations at its three Crimean restaurants following ongoing diplomatic tensions in the region.

The company said that it would try to support staff, and hopes to re-open its restaurants in Simferopol, Sevastopol and Yalta as soon as possible.

McDonald’s is the second in the Crimea to alter its operations after heightened tensions between Russia and the west.

Deutsche Post said on Thursday that it was no longer accepting letters for Crimea.

“Due to operational reasons beyond our control, McDonald’s has taken the decision to temporarily close our three restaurants in Simferopol, Sevastopol and Yalta,” McDonald’s said.

A Reuters report said that the company had offered to relocate staff who wished to move to Ukraine.

According to a Kiev-based restaurant consulting group, losing the three restaurants would only result in a 5 percent loss for McDonald’s Ukraine Ltd, where the average daily revenue for each restaurant is about $8,800 (100,000 UAH).

“Calculating net income at about 30 percent of revenue, with the Crimean restaurants remaining closed the American corporation will lose $240,000 [UAH 2.7 million] in profits each month,” Olga Nasonova, director of Restaurant Consulting, told Russia Forbes.

According to Olga Nasonova, McDonald’s has invested about $10 million in the three sites.

A McDonald’s restaurant was first opened on May 24, 1997 in Kiev, and the company now has 79 restaurants in 23 cities across Ukraine.

McDonald’s is the fifth most popular restaurant for Ukrainians, according to Olga Nasonova. There are more than 300 restaurant locations in Russia.

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Clyde K. Valle

Clyde is a business graduate interested in writing about latest news in politics and business. He enjoys writing and is about to publish his first book. He’s a pet lover and likes to spend time with family. When the time allows he likes to go fishing waiting for the muse to come.