Subscribe Login
Restaurant

McDonald's Kazakh Licensee Gives Up Franchise

By Dave Simpson

The Kazakh licensee of McDonald's Corp will no longer operate under the US corporation's brand "due to supply issues", the company, Food Solutions KZ, said on Thursday 5 January.

Details

Food Solutions KZ was forced to temporarily close its restaurants in November after cutting ties with Russian companies and running out of supplies, three sources with knowledge of situation had told Reuters.

The Kazakh company said in a statement on Thursday 5 January it would soon reopen its restaurants to serve the public in the Central Asian nation of 20 million under a new brand.

Get a FREE Digital Subscription!

Enjoy full access to Hospitality Ireland, our weekly email news digest, all website and app content, and every digital issue.

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our Terms & Conditions and Privacy Policy

The exit highlights the supply issues faced by many Kazakh businesses in the wake of Russia's invasion of Ukraine and the western sanctions against Moscow that followed. Neighboring Russia is Kazakhstan's main trading partner.

Asked earlier this week to comment on a media report saying it would exit the Kazakh market, McDonald’s declined to comment.

McDonald's Set To Exit Kazakhstan On Russian War Spillover - Bloomberg News

The above news followed news that McDonald's Corp is set to abandon Kazakhstan as disruptions triggered by the Ukraine crisis have left the nation without a substitute for Russian meat supplies, Bloomberg News reported on Wednesday 4 January, citing people familiar with the matter.

The fast-food giant, which exited Russia in May, banned its local franchisee from procuring meat patties from Russian suppliers, the report said.

McDonald's declined to comment on the report.

The company's licensee in Kazakhstan was forced to temporarily close its restaurants in November after cutting ties with Russian companies and running out of supplies, three sources with knowledge of situation had told Reuters.

The exit highlights the supply issues faced by many Kazakh businesses 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.

News by Reuters, edited by Hospitality Ireland. Click subscribe to sign up for the Hospitality Ireland print edition.

Enjoy a FREE Digital Subscription
Enjoy full access to Hospitality Ireland, our weekly email news digest, all website and app content, and every digital issue.
Enjoy a FREE Digital Subscription
Enjoy a FREE Digital Subscription
Enjoy full access to Hospitality Ireland, our weekly email news digest, all website and app content, and every digital issue.
Enjoy a FREE Digital Subscription