McDonald’s pulls out of Iceland

[mawilson 2,133]

Iceland edged further towards the margins of the global economy on Monday when

McDonald’s announced the closure of its three restaurants in the crisis-hit country

and said that it had no plans to return.

The move will see Iceland, one of the world’s wealthiest nations per capita until the

collapse of its banking sector last year, join Albania, Armenia and Bosnia and

Herzegovina in a small band of European countries without a McDonald’s.

The loss of the Golden Arches highlights the extent of Iceland’s economic demise

since the pre-crisis boom years when its “Viking Raider” entrepreneurs turned

Reykjavik into an international finance centre and launched a buying spree of

high-profile European assets.

McDonald’s blamed the closures on the “very challenging economic climate” and

the “unique operational complexity” of doing business in an island nation of just

300,000 people on the edge of the Arctic Circle.

Most ingredients used by McDonald’s in Iceland are imported from Germany –

leading to a doubling in costs as the krona has collapsed while the euro has

strengthened.

Magnus Ogmundsson, managing director of Lyst, the McDonald’s franchise holder

in Iceland, said that price rises of at least 20 per cent were needed to produce an

acceptable profit. That would have pushed the price of a Big Mac burger well

above the $5.75 it costs to buy one in Switzerland, home to the world’s most

expensive McDonald’s, according to the Big Mac index.

Lyst plans to rebrand its three restaurants – all in the Reykjavik area – under a

new name, Metro, and adapt the menu to use more locally produced meat and

vegetables after its McDonald’s franchise ends on Saturday.

Mr Ogmundsson admitted that some customers were alarmed by the symbolism

of such a recognisable brand abandoning Iceland but others have reacted positively.

“People are pleased that we will be sourcing more goods locally,” he says.

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[Nessa 23]

terrible and just wrong

[w¡n9Nµ7 §£@¥€r 123]

So they're just losing the brand, not the actual restaurants. BFD.

[Peikko 1,575]

3 Restaurants? Somehow this says just how significant McDonald's presence is in Iceland

[Trumplestiltskin 5,791]

Good for the icelanders, noone should be exposed to McDonalds horrible food.

On the economic situation, perhaps its time to break out the longships again. Seems to work pretty well for the Somali warlords.

[Nagishkaw 510]

Brings a whole new meaning to the word Cold Cash.

[Trumplestiltskin 5,791]

So they're just losing the brand, not the actual restaurants. BFD.

Its a pity they went with such a pansy name like Metro and not something more appropriate like Odin's or Erik the Red's.

[mawilson 2,133]

3 Restaurants? Somehow this says just how significant McDonald's presence is in Iceland

For a nation of 300,000 people?

[Amby 490]

Cleo - I have a friend from Iceland and he loves McDonalds and Jay Leno

[Peikko 1,575]

Every nation has its nutters

[AlHayatZween 2]

Bjork's been lookin' kinda hefty nowadays anyway.

[William33 110]

McDonalds is #######...Having not eaten there in over 5 years, I went for a a few $1 double cheeseburgers. Big mistake....Bone fragments and grizzle throughout.... They must buy the cheapest beef on the market..Now I remember why I avoided that place!!!

[DEDixon 39]

Iceland was voted world's happiness people not so long ago... doubt they are so happy now.

[spookyturtle 9,466]

Iceland was voted world's happiness people not so long ago... doubt they are so happy now.

Iceland is like Australia, only colder.

[William33 110]

Wondering if they get better beef there....

http://www.visajourney.com/forums/index.ph...t&p=3439714