NewsBite

Frenzy for McDonald’s as Russia mulls reopening loophole

Russians have been reselling McDonald’s for upwards of $1000 – but it could be set for a comeback as officials consider a sneaky loophole.

Putin may re-open McDonald's as Russia lifts trademark laws

Russians have been stocking up on McDonald’s after the food giant announced it would be shuttering all 850 restaurants in response to the unfolding crisis in Ukraine.

But it could be set to make a comeback of sorts after the Russian government revealed it was considering voiding the trademarks of companies from “unfriendly” companies.

On Tuesday McDonald’s joined major US companies Starbucks and Coca-Cola in announcing it would be ceasing operations in Russia.

The shuttering of all 850 Russian restaurants, which employ 62,000 people, sparked long queues with Macca’s lovers desperate to get their last Big Mac fix.

Many took to Russian classifieds website Avito to sell McDonald’s meals and condiments at inflated prices, with one meal listed for sale at a whopping $1137, Daily Mail reported.

Want a streaming service dedicated to news? Flash lets you stream 25+ news channels in 1 place. New to Flash? Try 1 month free. Offer ends 31 October, 2022 >

The photo reportedly shows one Russian's stockpile attempts after McDonald's announced it was closing all stores there. Picture: Reddit/
The photo reportedly shows one Russian's stockpile attempts after McDonald's announced it was closing all stores there. Picture: Reddit/

On Reddit, one user shared a photo of a fridge stuffed full of Macca’s burgers, claiming their friend in Russia had stocked up when the fast food giant announced it was closing.

The post got thousands of comments, with some joking it was the “hoarder pounder” burger and was a sound investment if the friend wanted to resell the burgers given their long shelf life.

But others said it was an indication of just how bleak life had become for ordinary Russians who had no say in President Vladimir Putin’s decision to invade Ukraine.

On Twitter, many said the closure of McDonald’s would be a blow to Russians as the company’s first restaurant opening in 1990 was seen by many as having marked the beginning of the end of the USSR.

“As trivial as it is, McDonald’s closing down in Russia is very symbolic,” Varia Bortsova shared in a now-viral tweet.

“When the first restaurant opened in Moscow in 1990, my parents joined a line of 30,000 people to get in. For most Russians it was the first glimpse of what eating out could be like over the Iron Curtain.”

The closure of McDonald’s in Russia comes after the fast food giant was one of the first US companies to set up in the USSR as communism collapsed in 1990. Picture: AFP
The closure of McDonald’s in Russia comes after the fast food giant was one of the first US companies to set up in the USSR as communism collapsed in 1990. Picture: AFP

Loophole that means McDonald’s could reopen

Russia this week issued a decree ending patent protections for companies based in countries that were “unfriendly” towards Russia, The Washington Post reported.

The country is also considering lifting restrictions on intellectual property “contained in certain goods whose supply to Russia is restricted” which could include company trademarks.

Intellectual property solicitor Josh Gerban told the Post getting rid of trademark protections means Russia could “take those McDonald’s that got shut down and … just let local operators operate the restaurants and call them McDonald’s”.

McDonald’s had previously designated Russia a ‘high-growth market.’ Picture: Kovalev Peter/Zuma Press
McDonald’s had previously designated Russia a ‘high-growth market.’ Picture: Kovalev Peter/Zuma Press

‘Unspeakable suffering’ forces Macca’s closure

In an email to staff on Tuesday, McDonald’s CEO Chris Kempczinski said the food giant would cease operations in Russia.

The decision came after days of increasing pressure over their decision to stay open in Russia.

There had been “unspeakable suffering to innocent people” and McDonald’s joined “the world in condemning aggression and violence”, he said.

While McDonald’s was continuing to pay full salaries to its Ukrainian staff, it had made the decision to stop operating “temporarily” in Russia.

“We understand the impact this will have on our Russian colleagues and partners, which is why we are prepared to support all three legs of the stool in Ukraine and Russia,” Mr Kempczinski said.

“This includes salary continuation for all McDonald’s employees in Russia.”

Original URL: https://www.news.com.au/lifestyle/food/restaurants-bars/frenzy-for-mcdonalds-as-russia-mulls-reopening-loophole/news-story/f493619a708b35acb495f58e53a7ae41