The Successor to McDonald’s in Russia Eyes Full Reopening; Shortage of Fries Ends on Solution

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The successor to McDonald’s Corp.’s (NYSE:MCD) operation in Russia intends to have all 850 outlets operating by the end of the year after facing supply chain challenges, potato shortages, and a significant rebranding project, it said on Tuesday.

Although he omitted particular information on sales, income, new goods, and import markets, Oleg Paroev, CEO of Vkusno & tochka, or “Tasty and that’s it,” offered a positive picture of the company’s first 100 days.

The difficult transfer shows that, just as Western corporations struggled to leave Russia without a hitch, so did new owners trying to buy up accessible assets.

Since its June 12 debut, Vkusno & tochka has sold more than 1.2 million burgers, according to Paroev, with some days seeing more sales than the McDonald’s brand.

McDonald’s exited Russia in May following a Western response over Moscow’s military operation in Ukraine, which included a slew of economic penalties, and sold all of its outlets to a local licensee, Alexander Govor.

Since reopening, Vkusno & tochka’s results have exceeded business expectations, but the hurdles have been “far more challenging” than anticipated, according to Paroev.

Due to potato supply issues, several of the chain’s restaurants were left without French fries this summer.

“We were in pain for two to three months,” Paroev explained. He went on to declare that the potato issue has been fixed, but he declined to reveal which nations currently export potatoes to Russia.

Vkusno & tochka wants to replace imports of crucial ingredients with locally made items, mirroring a larger trend among Russian enterprises seeking to mitigate the effect of sanctions over Ukraine, according to Proev.

Vkusno & tochka has been providing cola on tap since September 16, and is currently offering Dobry Cola after Coca-Cola emptied its supplies.

Coca Cola HBC AG, which produces Dobry Cola, has said that it has no affiliation with the Coca-Cola Company. The Coca-Cola Company owns 23% of Coca-Cola HBC.

With 820 sites across Russia now operational and millions of roubles spent on rebranding, Paroev also stated that the firm is in negotiations with the one remaining previous franchisee about joining the Vkusno & tochka brand.

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