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McD marks Russian anniversary with growth plans

McD marks Russian anniversary with growth plans

OAK BROOK Ill. As McDonald’s Corp. celebrates the 20th anniversary of its first restaurant in Russia, the company has identified that country as a major growth market with plans for 45 new units in 2010.

Company officials said Russia has become McDonald’s fastest-growing market in its European division, serving more than 950,000 customers a day. McDonald’s chief executive Jim Skinner was visiting Moscow for the 20th anniversary, where he told reporters that Russia would be a significant target for reinvestment.

“In Russia, we now have 245 restaurants in more than 60 Russian cities across the country, with plans to open 40-45 new stores in 2010,” said Khamzat Khasbulatov, president of McDonald’s Russia.

McDonald’s spokeswoman Rebecca Hary said the original restaurant, in Moscow’s Pushkin Square, where the chain’s Russian president Khasbulatov started as a manager, is one of the company’s busiest units in the world. She added that three of McDonald’s busiest restaurants are in Russia.

“At Pushkin Square,” she said, “they have 26 cash registers, which speaks to the volume of people coming in there. It’s served more than 130 million customers since its opening.”

On that day, Jan. 31, 1990, McDonald’s served more than 30,000 guests, setting an opening-day sales record. The Golden Arches’ breakthrough in Russia came 14 years after George Cohon, founder of McDonald’s Canada and McDonald’s Russia, had a chance encounter with the Soviet Union delegation at the 1976 Olympics in Montreal.

“What started as a casual conversation led to years of negotiations and culminated in the opening of the first McDonald’s in Russia,” Cohon said. “Initially, people were skeptical about whether McDonald’s would work in Russia. I’m very proud to say that since opening 20 years ago, we have served more than 2 billion customers, which is a testament to the great work and dedication of our Russian employees.”

It’s also a testament to the Russian appetite, which has grown fond of American quick-service staples.

According to a pilot study of the Russian foodservice market, conducted in late 2006 by The NPD Group, the top-selling food and beverage items then were burgers, included in 29 percent of restaurant orders; coffee, 28 percent; French fries, 28 percent; soft drinks, 25 percent; and hot tea, 25 percent.

McDonald’s spokeswoman Hary added that apple pies are quite popular in Russia, as is a proprietary item to that market, Beef a la Rus: a hamburger patty with lettuce, tomato, fried onion, cheddar, relish and garlic sauce on a rye bun. The company also pointed out that McDonald’s Russia now procures 80 percent of its ingredients from independent Russian suppliers.

Hary identified China, Australia, France and Germany as other markets where the company would pursue aggressive growth in 2010.

Oak Brook-based McDonald’s has more than 32,000 restaurants in more than 100 countries.

Contact Mark Brandau at [email protected].

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