1. The Moscow McDonald`s is not only the largest in the world, but also it is really truly

McDonald`s: McDonald`s menu, equipment, uniform, sweepstakes and, of course, fast service with smile. If you come at any McDonald`s in any part of the world, you are sure you will see the same.

McDonald`s has been extremely successful in Russia by having good cooperation with the Russians and by taking their interests seriously from the beginning. Today just four Canadian experts down from 60 decade ago are on hand to supervise 35, 000 Russian employee. Before the opening the restaurant received more than 27, 000 applications in response to a single help wanted advertisement. After screening the applications, McDonald`s employees were given an intensive training program.

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For instance, every store manager receives 2, 000 hours of training, including a 6-day course at Hamburger University in Chicago. It gave them an opportunity to move to the top and fully realize their abilities and skills, because the training programs were focused on the McDonald`s founding principles of offering a quality product at an affordable price in a clean and friendly environment. It was the pleasure to watch the grim, stony faces of new customers people who had been scowled at by officials and shopkeepers all their lives slowly break into a smile simply because one of crew members was smiling at them.

It has also helped McDonald`s escape becoming a target for Russian rising anti-western backlash, at least so far. McDonald`s is an all-Russian operation. Anyone who looks at McDonald`s. they see it has not only Russian employees, but also it is selling Russian products. Of course, some products like a special kind of potatoes were importing to Russia. Over 75% of raw ingredients needed for McDonald`s Russian restaurants are purchased from more than 100 independent Russian and C. I. S. suppliers who follow McDonald`s strictly controlled quality standards in their food processing operations.

2. It took McDonald`s 12 years of solid negotiations- initiated by MRCL Senior

Chairman George A. Colon before an agreement was signed with the Food Service

Administration of the Moscow City Government City, back in 1988. It was hard to take 70 years of communism and think that overnight it was going to change. It was naive to think that all of a sudden free enterprise would come in and just all will be great. The so called cold war between Russia and USA at that moment lied to the creation of joint venture partnership of Russia and Canada with the investment of $50 million. It was a lot of obstacles for the McDonald`s Canada at that time. Profit was small at first, with a 50-50 split between the company and the Russian government.

The business is conducted entirely in Russian rubles that are nearly worthless outside the country. Also there was bad communication in Russia. It was existed only one of international phone line. Because of the cold weather, bad road system and old equipment it was very difficult to centralize all the functions of the processing system. So McDonald`s has built an entirely independent Russian organization with its own farms to supply products and its own 100, 000-square-foot McComplex to handle 57 tons of food and supplies each day in a strictly controlled, state-of-the-art environment.

3.. Despite the collapse of the Soviet Union, two attempted coups, two wars in

Chechnya and a harrowing economic crash in 1998, McDonald`s has kept growing in Russia. Cohon commands 52 restaurants in 17 cities. The company has served 255 million customers and employs 6,000 Russians working out of a central processing and distribution center. McDonald has its own equipment, research people, effective and motivate work force. There is still a paucity of competition. Some Western fast food chains, such as Pizza Hut and Kentucky Fried Chicken, opened in Russia with great fanfare but later pulled out. McDonald`s customers praise the restaurant for keeping prices low despite the economic crisis. It is a great value for money.

A Big Mac now costs about 30 rubles, equivalent to $1, 25. These themes help to illustrate McDonald`s basic corporate philosophy of Giving back to the community. The well-known red-shoed clown and special children s ambassador, Ronald McDonald, is active in charity work in Russia, helping to improve the quality of life of children with special needs. McDonald`s outstanding success in Russia is a tribute to Russian employees, suppliers and, of course, the customers.


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