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Mon 16th May 2022 - McDonald’s facing $1.4bn hit as it reveals plans to sell Russian business
McDonald’s facing $1.4bn hit as it reveals plans to sell Russian business: McDonald’s has said it will pull out of Russia after more than 30 years of operation in the country and take a write-off of $1.2bn to $1.4bn for the move. McDonald’s has initiated a process to sell the Russian business after temporarily closing its restaurants there, the company said in a statement. It said the humanitarian crisis in Ukraine amid the war there and the unpredictable operating environment meant it was no longer tenable to operate in Russia, “nor is it consistent with McDonald’s values”. McDonald’s is pursuing a sale of its entire portfolio of restaurants to a local buyer and will “de-arch” the outlets, removing the McDonald’s name, logo, branding and menu, though the company will retain its trademarks in Russia. Chief executive Chris Kempczinski said: “We have a commitment to our global community and must remain steadfast in our values. And our commitment to our values means that we can no longer keep the Arches shining there.” McDonald’s said in March that it was temporarily halting business in Russia. The company’s first branch in Moscow opened in 1990, just before the fall of the Soviet Union. McDonald’s said it will continue to pay local staff while it seeks a buyer. McDonald’s has more than 800 restaurants and 62,000 employees in Russia. McDonald’s said its restaurants in Ukraine, which has been under attack by Moscow’s forces since late February, remain closed. The company said it is continuing to pay full salaries to its employees in that country, as well. Russia and Ukraine had accounted for about 2% of McDonald’s systemwide sales, and approximately 9% of its revenue and 3% of its operating income.

Vagabond to make transport hub debut this week, offers extensive food menu for first time: Imbiba-backed wine bar business Vagabond will make its transport hub debut this week – and also expand its food offer. As previously revealed by Propel, the Stephen Finch-founded business will open a site airside at Heathrow’s Terminal 5. The £1.2m investment will see Vagabond create 60 jobs, opening the doors on Thursday (19 May) to a 4,500 square foot site, with space for 170 guests. The venue will offer more than 100 varieties of wine and will also be home to one of the brand’s self-pour craft beer walls. For the first time, Vagabond will also offer extensive breakfast, lunch and dinner menus as well as bar snacks, cocktails and a children’s menu. Matt Fleming, managing director at Vagabond, said: “This is a really exciting step into the airport environment for Vagabond and the Heathrow site will expose millions of guests to the Vagabond concept per year. We have ambitious growth plans to open further sites across the country and this new venue is also a fantastic foothold for potential future international expansion. We can’t wait to introduce the Vagabond way to people from around the world, giving them the perfect start to their journey.” Vagabond’s Heathrow site will become the 11th in the group, with nine venues already trading across London and a recent opening in Birmingham. Finch told Propel in February that on the back of Birmingham’s success, Vagabond would be focusing its expansion on the regions.

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