By - vancouver_reader
Not being McDonalds is costing me billions a month, but I'm not complaining about it.
This is a drop in the bucket for them, hardly news.
For real. They make over 19 billion dollars a year.
Don’t get me wrong. It’s great that they are closing them, but don’t act like it’s hitting their wallet. It’s not.
It’s because they chose to keep paying their employees. So maybe it just costs them 50million a month to pay them all.
What do Russian labor laws say about whether it's actually a "choice"?
From what I see, you need to give 3 months notice for a mass layoff, so they'd have to pay their workers for at least that.
That's actually a good point. I'd assumed this was them keeping staff on payroll because they were looking to reopen as soon as the invasion was done and things were back to (relative) normal, but that's a possibility.
Yeah, but a Russian court probably wouldn't recognize it as Force Majeure.
"Papa Putin says there's no war, so fuck you".
> I'd assumed this was them keeping staff on payroll because they were looking to reopen as soon as the invasion was done and things were back to (relative) normal, but that's a possibility.
I think your original reasoning is more accurate.
Corporate doesn't want Russia to nationalise their restaurants and take the assets so they just say they're closing the stores as lip service to sanctions to please the West. Whereas on the ground, they're still paying the staff so that hopefully they don't get everything taken away.
They're trying to have their cake and eat it.
This probably applies to all of the other corporations as well that have said they've pulled out but in reality they've just temporarily closed to try and keep their assets.
"At will employment" is totally illegal just about everywhere outside of the U.S.
They probably not doing that forever.
With ruble collapsing, it gets cheaper every day.
They're likely being paid out of McDonald's Russian bank accounts.
I'm lovin' it!
“I’m not lovin’ it” … says Ronald on a remote Russian hillside. Rain pouring down, he takes one last puff of a french fry before extinguishing it, then grips his sniper rifle.
Edit: TY for the awards and for the absolutely brilliant McDonald’s themed war movie titles. Great surprise to wake up to.
Saving Private Fryan
The Steer Hunter
A Fridge too Far
The fat red line
Bridge over the river Fry
Born on the 4th of some fries.
All quiet on the Russian Store Front.
The Big Mac One
Two all beef Pattons.....
[Courage Under Fryer](https://en.wikipedia.org/wiki/Courage_Under_Fire)
McPocalypse Now Deluxe
Band of Burgers
Bridge Over the River Fry.
Full McDouble Jacket
We Were Burgers
Ice cream harbor
Ice Cream Machine Down
Judgement At Nuremburger
Enemy at the Arches
The Thin Pink Line meets The Buns of Navarone.
Don’t take two. That’s just rude and leaves one less for the next punmaster... etiquette...
The Dirty Dozen Piece
Meat Gear Solid.
“Ruble ruble” he muttered.
I love u. Thank u for doing gods work. Enjoy not the gold I cannot afford but the warmth you get from knowing I pissed a little.
the best kind of gold
Bro best comment I've read all month
“Robble robble muthafuka”
Alls Fryin' on the Western Front
I’d watch the shit out of this.
A burger clown taking out putin, to save the world. This has straight to.. wait what medium are we on nowadays? Blu-ray?
*in movie guy voice* One clown, one bullet, one kill.
STARRING ROB SCHNEIDER AS THE HAMBURGLER.
Liam Neeson as Ronald Mc’Donald.
Seth Rogan as Grimace.
Danny DeVito as Putin
Sean Bean would be better.
One does not simply walk into Ukraine.
Yes. Guaranteed death
"sigh, I'll grab my top hat"
Mark Wahlberg as Mayor McCheese
Jonah Hill as Birdie
In a world....where MickieD's is no longer open in Russia....one clown with a gun will change the world with one shot. I present to you, a rootin tootin putin shootin! With his red afro be enough camo to hide among the kremlin draperies or will his shoes stick out to far from beneath the curtains. Lavrov "hey is that......?" PEW PEW PEW.
I need the guy who does Honest Trailers to say this.
Someone get Pablo Francisco on this STAT
Straight to the Roku channel
Roku Channel surprisingly has some good shit. Plenty of trash and ancient movies nobody cares about, but they do get the odd good movie or show.
Coming to theaters this July 4th. An action picture like you’ve never seen before. (Cuts to image of Ronald McDonald Slavic squatting with a bottle of vodka in Moscow)
“Tell Ole Vlady Boy I gave him an extra toy in his happy meal” (cuts to special forces Ronald McDonald’s walking away from an explosion. But it shows Ronald had already gotten to Putin. With a McFlurry straw sticking from his neck) and that’s the trailer
Я не говорю по-Русски, товарищ
Staright to streaming
Imagine if it was a show about Ronald executing the competition. "The king is down, I repeat, Burger King is down!"
"Now for that bitch Wendy."
Especially the scene with the flashback to executing Hamburglar for spying for the enemy
[Here's something similar](https://youtu.be/NiP3ZDApOsA)
Still hard to believe it’s been years since Ronald was officially retired. Those rampant clowns in the news didn’t help Mickie D’s image.
When was he officially retired? There was a guy dressed as ol' Ronald at a McDonald's truck at a convention I went to in 2019
I wish the whole clown thing could have gone longer but people were quick to shoot an unarmed entertainer on site.
Imagine losing $50 million per month and being just fine. Even better than that.
And on top of that still paying the employees to not work.
I honestly find that part kind of surprising. I believe not wanting to lay off employees kept them from immediately closing in Russia, then they bit the bullet and closed but continued to pay the employees.
1) The money is stuck in Russia anyway (and otherwise worthless atm). 2) This is a PR win in both Russia and the West.
Still surprising. Are all of the other businesses ceasing operation in Russia also continuing to pay their lay offs?
Some are. And they make a point to phrase it like they're suspending their operations, not ceasing them. Makes sense - because if they start firing people, they're going to make it harder for themselves to restart. And then the government can step in too.
The company I work for has about 1,000 engineers in Moscow, the company is still paying them.
And the staff.
Cholesterol is the real loser in all of this
It's great public relations for their restaurants in nearly every country. In the grand scheme of things, it cost them next to nothing for that kind of PR. Their reputation hasn't been the greatest lately. It really hasn't changed my mind on how shitty of a company they are, but definitely a solid business move.
Their PR in other countries is often better than in America. In America we know it as cheap available garbage, and their PR reflects that. However in other countries it can be seen as the face of America and Capitalism, and their PR works much better in that type of environment.
I never have fast food in the States but when I’m in China my wife orders the crap out of it. Definitely doesn’t have the same association there as there as it does here.
The food quality outside the states just seems higher. Like i only remember having their nuggies in airport in eastern Asia (was either SK,bangkok, or some thai airport) but they were significantly better than states ones.
They try harder abroad for sure. Similar to Holiday Inn and other hotels. Holiday Inn on the States is pretty mediocre in Asia it’s baller.
There’s no way to out “budget” 10 USD/night hotels and 0.75 USD noodles so they have to make an effort.
Every articles written regarding McD in Russia noted that their quality is noticeably better than state side. I have only had their stuff in Malta abroad, and it was certainly better.
Dude so glad to see this comment. I stayed at a Holiday Inn in Thailand and oh. my. god. one of the best hotels I've ever stayed at. Property right on the beach, five star rooms, incredible food, swim up to our room porch from this awesome man made river thing, all kinds of hotel packages and amenities and whatnot. And most importantly it *felt* exclusive and luxurious and subtly elegant.
Blew me away the whole time. Like, *are you sure* that this is a Holiday Inn??
It’s trying harder for sure but also other countries have stricter rules on food, how it’s processed and where it comes from that the US just doesn’t have.
I actually found Holiday Inn here in the states pretty decent. Surprisingly not cheap too
They don't "try harder" we have regulations.
Absolutely true. Quality levels in Asia are higher for certain product.
In Europe their McCafes are ran by baristas and they have local pastries - well in Germany anyways.
Other places have way better laws about what can be in food.
For one thing, you don't have broken ice cream machines and have crisp apple pies
From the Philippines. Their ice cream (with extra chocolate fudge) is my comfort food before going home after a tiring day at work.
From Malaysia and, yeah...we don't really have broken ice cream machines in McDonald's here, normally if it's not available it's just being cleaned and you can have it by the time you finish your burger.
Our kids wanted some American food on our recent trip to Mexico and there was a McDonald's close to our hotel in Orizaba so we stopped there. Food was definitely fresher, hotter, and the staff friendlier. You could tell the oil they used was clean and fresh. Now if we could just bring those standards to the States this place might not be such a shithole
Same way in Asia in my experience. But when you're paying $8 for a burger over there, that's similar pricing to dinner at a nice local restaurant, so they have to step up their game on all levels.
Different countries source their meat and ingredients from different producers. There is a massive difference between Canadian chicken nuggets (which are legally required to be all white meat, no filler) and American ones, where the composition is a little more... murky, legally speaking.
And like, Japanese Mcdonalds is some fancy shit. They look just like the product pictures even when freshly made.
Well you guys are allowed to consume things that are deems not safe for human consumption in other parts of the world. Gotta love lobbying.
Macdonald's in South Africa is incredible. I read about how it's seen in the states and it blows my mind. Here it's always clean, fresh and genuinely tastes good. Same for BK and KFC.
Same in the UK. All their beef, poultry and fish have certifications and they even tell you the exact cut of beef they use (flank) and that it's only ever from Ireland or Britain. For something like four years in a row they were in the top 5 best companies to work for. You could even request that they train you toward a college qualification in Business and Hospitality management. I knew someone that does this and he's now the store manager of my local Aldi.
I worked in the kitchen for a franchise way back when I was in university and I honestly don't have a bad word against their day to day operations.
Then I visited a friend in the States and we just _needed_ food on a long road trip and the McDonlads we stopped at... Sure, they say it's "100% beef" over there but beef shouldn't squish like room temperature butter.
In America they are generally considered clean. Usually if someone needs to stop for a bathroom break on a road trip. A McDonalds is a much better option than a gas station.
I think McDonald’s has the bad reputation specifically over the healthiness, or lack there of, of the food. I feel like the final nail was the “Super Size Me” movie. Where the guy buys nothing but McDonald’s and gets sick. In America it seems like everyone loves to hate McDonald’s yet almost everyone finds them selves eating there at some point. A lot of times on road trips, because they are damn near everywhere.
I just want to point out that Morgan Spurlock had to upgrade his meal every time he was asked. It’s the soda and fries that’s bad. There was a guy in the movie who only ever ate Big Macs every day and he was fine. If you drink that much soda every day, no matter where it’s from, you’re going to have a bad time.
Yeah, that was a large part of point it was making, hence the title "Super Size Me". Nowhere else had a wide policy to upsell the larger size when you didn't ask for it.
Although, that's kind of a factor in all fast food still as they price things that way anyway, caus once they've covered overheads the cost of larger sizes can be small.
Also, the presence of the camera absolute increases the frequency in which he's asked to supersize.
I hate that soda is seen as a normal everyday drink, especially for children.
Nobody I know would add 9 sugar packets to a cup of coffee, but that’s what in a single serving can of regular cola.
More developed countries have many more regulations on what you can put in food.
Hence their meat has to be good. Bread is not filled with sugar etc.
That's why McDonald's isn't terrible overseas.
Chicken McNuggets in Canada are significantly more expensive than in the US because the McNuggets in Canada are all white chicken breast while in the US it's random chicken meat.
McD's (and other establishements) suffer from everyone calling it a dead end job, or lowest rung on the ladder kind of deal.
No one wants to put in any effort into something everyone else calls shit. I got fooled into thinking the industry was worth working in by probably one of the best run restaurants the brand I worked for has probably ever seen.
Every place I've worked for since then has been a depressive shithole where it's hard find even a motivated manager.
McDonalds is predictable and safe. they take food safety VERY seriously compared to most companies out there. I'd take it over a lot of other options on a road trip in an unfamiliar area. Starbucks is kinda the same way.
McDonalds is, for the most part, fairly consistent in taste. It's about the only place I can almost guarantee its gonna taste the same in Seattle as it does in Atlanta.
My US friend when came to visit Ukraine was shocked by our McDonald’s. As my understanding goes, in US there are a lot of franchises, but here it’s a single entity across entire country, and they’ve been ranked as the best employer for multiple years, plus it’s always clean & tasty (as it gets with Mac).
Just an anecdote
In the US they're a minimum wage employer, so the people who work they can't afford to live and can't afford healthcare. They exploit their workers and in return their workers generally (and understandably) don't care about their job or take any pride in their workplace. "Working at McDonald's" or "flipping burgers" or "making fries" is often used as shorthand for being a failure by people against worker's rights, and they cite McDonald's specifically when arguing why workers don't deserve a living wage, which is fucked up.
It's easy to see how in countries with universal health care and a livable minimum wage McDonald's could easily have a completely different reputation. But in America they're a legitimately awful corporation.
They don’t pay much (it’s still >x2 of minimum, but you just don’t survive on minimal wage at all, it’s like ~250$ a month), and there’s a stigma around working in Mac, but everyone who’s been through it say they have very high work standards and ethics, and it’s a pretty good working experience.
The workers are paid in rubles, the bank transfer and admin fees will cost more then the cash to pay the people.
I don't think that's 'on top of it' - they're probably including that in the cost calculation.
They will release a blue and yellow McFlurry to support Ukraine and come out even.
Will the ice cream machines work or will it just be on the menu?
Definitely only at participating locations, but on the menu everywhere else.
I just started blasting
Whoops, I dropped my monster condom, that I use for my magnum dong
Anyway... on to important things. 2022 is so fucking bizarre that I think the Leafs will win the cup. Granted I am very drunk, been bonging all day, banged my head real hard on the toilet seat and was raised in a leaded gas environment but I still feel this is their year.
You know…OK I get it. Corporations suck. Russia sucks. Pick a side though. You’d probably be lambasting McDonalds if they didn’t leave Russia. Good for them for giving up anything, no matter how small, to take the right side. And frankly if they want to make the exact number known, good for them.
I’m so sick of Reddit trying to play
both ways on every issue that involves wealthy people, corporations, politics, etc. Yeah it’s probably not a totally altruistic move but hey, business isn’t about altruism. You’d probably quit your job if they stopped paying you. Same thing. So take this win and shit up.
This is just so very true. Redditors don’t even realize the degree to which simply participating in this echo chamber affects their thinking. It’s much subtler than outright propaganda, of course, but it still leads to some wacky bullshit. “All corporations are evil 100% of the time” is just as useless a cognitive shortcut as any other.
Days before McDonalds and Coca-Cola pulled out of Russia, Redditors were just ohhhhh sooooo convinced that they would never. That profits would trump morals. Then they point to the same tired three or four examples that everyone points to make their case. Then, when they do pull out, they gotta warp that shit to feed their twisted cynical world view. “It won’t cost them that much”, or “it’s good PR”, or whatever the fuck else. Maybe that’s all true. Or maybe, like the rest of us, they simply can’t stomach what they see happening in Ukraine, and don’t feel good about doing business in Russia.
Look, I’m not under some ridiculous delusion that corporations are forces for good. Of course their primary driver is going to be profit. But when you get stuck in any mindset, you start twisting facts and attributing motives to fit your convenient, lazy narrative. You get real defensive when people question it. And, most importantly, you stop accepting any information that has the potential to shift your views. That’s really dangerous, especially in an echo chamber like Reddit.
... how do they rate the costs incurred by Putin murdering innocents in Ukraine?
They’re on the dollar menu level.
I want to know Addidas hit on pant suits, Jiro -20’s.
No, it means they'll make 50mill less a month. Not lose 50mil a month. They're still making money hand over fist.
About 3% annually of their global revenue of $21 B.
They still pay their Russian employees according to the article.
Not making any money in Russia and still paying salaries for your Russian employees sounds like loosing money.
It's not like the average Russian was going to be able to afford to eat there with ruble buying power dropping through the floor, anyway.
Russians also can't convert from worthless rubles to useful currency so even if they made some sort of profit they couldn't get it out of the country and it the currency its profits would've been in is constantly dropping in value.
Any profit they eeked out one week would likely be meaningless the following week.
TL;DR - They'd have lost the money one way or another.
I was under the impression the price of food won’t fluctuate that much within Russia. Like a tomato that used to cost 50 Monopoly dollars would still cost 50 or 60 monopoly dollars with the sanctions, instead of 50,000.
Am I wrong? Or are most Russians starving to death because they can’t afford to pay million of dollars for groceries?
No, you're not wrong per se, where the conversion fucks the Russians over is on goods they buy from overseas.
And they'll likely see prices rise as the sanctions go on since more people will buy fewer resources.
and since most products at some point in their supply chain have something imported in it prices will go up and availability might go down
Yeah, eventually some stuff along the supply chain is going to be imported and if the price of that goes up so will everything along the chain
How many of their seeds are imported, though? I heard that 90% of their potato seeds are imported and genetically modified, so they don’t reproduce.
Russia is in a unique situation as far as getting cut off from the international economy goes. They are one of the largest agricultural and petroleum exporters, which are what most sanctioned countries struggle with. Their quality of life will go way way down, but it's unlikely they will starve or freeze to death without Soviet style mismanagement
>but it's unlikely they will starve or freeze to death without Soviet style mismanagement
Kremlin: "Hold my vodka"
Now they will have ultra capitalist mafia mismanagement... not sure we want to find out which is worse.
Yeah but that's because the imported seeds have higher yields. They have potatoes that grow there.
at what efficiency compared to what they are used to?
I have no idea what GMO's actually do yield wise, but if it wasn't pretty good they wouldn't be paying a premium to do it.
Russia is in usual times a large exporter of food, potatoes included. I’m going to imagine using non GMO seed potato can still more than cover domestic requirements. It’s the export market that would maybe suffer due to lower yield
About 25% of Russia is temperate and humid, they have the climate to grow nearly every crop in the world aside from tropical plants, they *could* technically be entirely self sufficient, but my estimates are a drop of about 30% of their GDP in the upcoming years.
Sochi is actually subtropical, with hot summers and mild winters. About 40,000 square miles of subtropical climate, and give or take 200,000 square miles of oceanic/warm continental land to the north east of there.
Sochi, the place I’ve heard of only because they hosted the _winter_ olympics, is subtropical? In the words of Dr Nick, “what a country”
They even grow tea on the hilltops near Sochi. Not great, ~~not terrible~~ but still.
Here’s a climate map of you want to take a gander
Russia has always been counting on global warming.
But they don’t have to, they already produce 80% of their own food, and they could easily supply their whole country (obviously they won’t, but they could)
You're right. This person is just telling Reddit what it wants to hear, so it got upvoted. It's wrong on essentially every point that it makes.
To be precise, the cost of food will go up, but less so than other goods. It'll go up partly because some of the inputs to their domestic food supply chain are foreign sourced, and it'll go up partly as a consequence of a perverse manifestation of the [Baumol effect](https://en.wikipedia.org/wiki/Baumol%27s_cost_disease).
However, it's likely food prices will rise significantly less than other prices. It's also not the case that McDonald's would have had significant trouble getting money out of the country or exchanging its rubles for dollars. The FX market is still operating just fine. McDonald's would be able to, at the very least, hedge their ruble exposure in the FX markets. They would also be able to wire money out directly, because contrary to popular belief, we have not actually entirely cut off Russian banks. We have sanctioned a few particular banks, and we have kicked them out of SWIFT, but it is still possible for Russians and Russian entities to access the international financial system, it's just less efficient.
Macdonalds had a gross profit of 3.261 billion in the last quarter of 2021. That means it's making 815M a month. 50M a month is 6% of that amount. Mcdonalds is still making a gross profit of 765M monthly if their revenue holds up.
Excuse them while they wipe their tears with money.
They have a duty to disclose this info shareholders.
They do. It's also on their Annual Report which is accessible to the public by US law and is somewhere on their website. Check it out!
Do you have net numbers?
Net income for 4th qrt 2021 was 1.6bln. His gross number is also wrong.
Not sure why everyone always talks of Gross profit like it means something when Net profit is the one the one that shows how profitable the business is. Net profits in Russia could be more than some place that has higher wages or higher running costs.
I worked for a company that made gross $2 mill per month but were only making $200k net profit on a good month.. it was one of the worst performing branches in the group.
I saw this comment before reading, and opened the article anticipating the $50M/month was revenue not profit.
Was wrong. They’re paying their employees salaries even while the store is closed. So yeah, that’s a bottom line hit. I’m conflicted on any monies flowing into Russia right now but that’s a pretty notable commitment to their workers.
All they are doing is reporting the facts, I didn't see any cries for help.
They’re doing a good thing, feels like you’re shitting on them for it.
It's the redditor smugness
Especially with bad info. "Gross profit" ???
That 3.261 billion they made is likely how much money they brought in, and doesn't count the money they spent on materials, wages, utilities etc
Super misleading post. So tired of people on Reddit crapping on bad people for the wrong reasons. Like yeah, they ARE bad people, but at least insult them for the right reasons
50 million per month is not nothing no matter what company you are. It will have an effect somewhere.
Yeah, honestly suddenly losing a full 6% of your income overnight should make any executive want to vomit. It’s quite a considerable number.
Why are you comparing it to gross profit and not net profit or EBIT?
> Macdonalds had a gross profit of 3.261 billion in the last quarter of 2021.
Maybe learn what gross profit and revenue are before commenting again.
Get over yourself. They didn't put this out for sympathy.
This seems like a catch-22 as far as Reddit is concerned. Either they keep running restaurants in Russia or they shut them down and get dunked on by internet socialists. Can’t win.
850 locations in Russia, and it's only netting $50 million?
We did them a favor demanding they leave, inflation would destroy their bottom line.
The profit loss is likely more than this. The cost is paying employees and paying leases.
Yeah it’s literally in the article. This is what they’re losing in large part from continuing to pay employees who aren’t working. I love Reddit but the edgy “can’t do right” attitude around corporations or anyone with more than $5 in their pocket really pisses me off
I don't understand all these companies being reluctant to pull out of Russia. The Ruble is worth nothing now. I would imagine it wouldn't be profitable to continue operating there.
I get all the people saying just pull out it’s not that much money but it’s more than just money. I work for a company that just pulled out of Russia. Guess what now all my Russian team mates are out of jobs. They were told they would help them find new jobs in the company in another country but how will they logistically move their life over night. It’s a really tricky situation and it sucks for the average Russian person. Putin really fucked his own on this one.
Lol, ruble might be worth less but a lot of business is still there. Like software development - for our company it meant telling 130 people that they're out of jobs, many cried. We have projects with clients around the globe that need finishing that depended on these 130 people - we can't replace them just like that as market already lacks specialists in other countries. We are helping them to move but we're looking at only approx 40% of people willing to move.
McDonald's obviously has different issues but think of it as well established business capable of earning, as title suggests, 40mil per month. Sure, that figure will be 50% less with ruble dropping but think of it when war ends and Russia decides to rebuild it's image - it will take years before they can reach that 40mil figure again.
Companies are reluctant because it means losing revenue stream for many years to come as well as letting your people know that their main source of income is gone. And don't give me crap that companies don't care about people - that can only be said by someone who doesn't work in senior leadership and doesn't know that it's not easy to replace people.
It’s only lost a third of its value. It’s not as dramatic as the clickbait headlines suggest.
Not nearly as much as the goodwill they stand to gain from doing so, so stick to it!
“Things I don’t give a McFuck About” for $200, Alex.
I bet you would if the headline were “McDonalds Continuing Business in Russia”
But they can’t pay a living wage in the US
Isn't that the American way?
What's a living wage?
If they could close down in my country as well that be great
They'll just have to grimace and bear it.