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.
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.
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