Mixed emotions as McDonald's leaves Kazakhstan
06/01/2023 14:27
ALMATY, Jan 6 (Reuters) - Workers removed the branding
from McDonald's outlets in Kazakhstan's biggest city, Almaty on
Friday after the fast food giant's local business appeared to
fall victim to collateral damage from the Russia-Ukraine war.
The brand's exit from the Central Asian nation of 20 million
divided opinion on social media and among onlookers near one of
the Almaty restaurants where workers were taking down the large
white letters from the top of the building.
"It was one of the nicest places where I used to spend time
with my friends," said local resident Karina, who only gave her
first name.
"I doubt any other company will be able to compete with
McDonald's in Kazakhstan at the moment as no other fast food
chain can replicate the menu that McDonald's had for the same
price."
Others described the brand's departure as a minor
inconvenience or said they would check out other fast food
joints.
Chains such KFC YUM.N , Burger King QSR.TO , and Hardee's
have restaurants in Kazakhstan and Popeyes said last month it
would open dozens of restaurants in the former Soviet republic
in partnership with local firm Centras Group.
Many Kazakhs, proud of their meat-focused cuisine, expressed
incredulity that McDonald's Kazakh licensee, Food Solutions KZ,
could not source its beef patties locally and imported them from
Russia until the war forced it to stop and ultimately shut down.
Industry insiders, however, say certificates and audits
required by the U.S. brand were expensive and lengthy, and local
meat producers did not want to bother with them.
Mcdonald's and Food Solutions did not immediately respond to
emails requesting comment.
The Kazakh company said on Thursday it would soon reopen its
restaurants under a new brand due to "supply issues".
Many Kazakh businesses have faced supply problems in the
wake of Russia's invasion of Ukraine and the Western sanctions
against Moscow that followed. Neighbouring Russia is
Kazakhstan's main trading partner.
(Reporting by Pavel Mikheyev; writing by Olzhas Auyezov;
editing by Philippa Fletcher)
((olzhas.auyezov@thomsonreuters.com; +7 727 2508 500; Reuters
Messaging: olzhas.auyezov.thomsonreuters.com@reuters.net))