McDonald's opens more outlets in Ukraine amidst war against Russia. Here's how American fast-food chain making profits in wartime economy
McDonald's had finally reached Ukraine's remote, alpine region of Transcarpathia, and the locals could not be happier. The much-acclaimed arrival of McDonald's in Transcarpathia signals an unexpected trend for the iconic American fast-food chain: In wartime Ukraine, business is booming. McDonald's stated it plans to open about 10 new outposts in Ukraine this year, pushing its total of operational restaurants to nearly 120, more than before Russia's invasion over three years ago. Across the country, city councils are vying to secure a McDonald's restaurant, knowing the chain will bring jobs and increase local tax revenues, as per a report.
McDonald's in Ukraine
It is also a testament to Ukraine's rebounding wartime economy. Having secured dozens of billions in financial aid from allies and having avoided runaway inflation, Ukraine is now drawing back Western companies that fled early in the war, including Swedish furniture giant Ikea and Spanish fashion brand Zara. Ukraine's economy is projected to grow by 2 per cent to 3 per cent this year, the third consecutive year of growth, although economic output remains below prewar levels, NYT News Service reported.
This success builds on a long-running love affair between a post-Soviet country and an American brand, a reflection of Ukraine's growing embrace of Western lifestyle, as per the NYT News Service report.
McDonald's in Kyiv
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McDonald's opened its first restaurant in Ukraine's capital, Kyiv, in 1997. The company's arrival was a major attraction in a country that had gained independence from the Soviet Union just six years earlier and was only beginning to open to the West. Crowds lined up for days to get a taste of the chain's storied burgers.
As the company expanded its footprint, Ukrainians' enthusiasm only grew. In 2011, the McDonald's restaurant at Kyiv's central train station ranked as the second-busiest in the world. Ukrainian children love celebrating their birthdays at McDonald's, while students often grab Big Macs after late-night parties.
McDonald's during Russia-Ukraine
After Russian tanks rolled into Ukraine in early 2022, McDonald's closed all of its restaurants. Some establishments, in cities such as Kherson and Melitopol, were destroyed or fell under Russian occupation. Meanwhile, the brand exited the Russian market, joining a wave of departing Western companies.
As Russia's initial invasion foundered and its troops pulled back to eastern Ukraine, life cautiously returned to Kyiv. Kuleba urged Blinken to encourage McDonald's to resume operations. "Life is coming back," he recalled telling him during a call. "I think it would send a powerful message if McDonald's came back, too."
When the chain reopened in Kyiv in September 2022, people lined for hours -- a scene reminiscent of its post-Soviet debut. The reopenings have not come without risk. The same Kyiv outpost that first opened in 1997 has been damaged several times in Russian attacks, most recently during a January drone and missile strike that shattered its storefront, blowing out its windows. It has since reopened.
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Rishika Singh is a Senior sub-editor at the Explained Desk of The Indian Express. She enjoys writing on issues related to international relations, and in particular, likes to follow analyses of news from China. Additionally, she writes on developments related to politics and culture in India. ... Read More
