Goodbye Golden Arches: Rebranded McDonald’s to Reopen in Russia

 A worker dismantles the McDonald's Golden Arches while removing the logo signage from a drive-through restaurant of McDonald's in the town of Kingisepp in the Leningrad region, Russia June 8, 2022. (Reuters)
A worker dismantles the McDonald's Golden Arches while removing the logo signage from a drive-through restaurant of McDonald's in the town of Kingisepp in the Leningrad region, Russia June 8, 2022. (Reuters)
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Goodbye Golden Arches: Rebranded McDonald’s to Reopen in Russia

 A worker dismantles the McDonald's Golden Arches while removing the logo signage from a drive-through restaurant of McDonald's in the town of Kingisepp in the Leningrad region, Russia June 8, 2022. (Reuters)
A worker dismantles the McDonald's Golden Arches while removing the logo signage from a drive-through restaurant of McDonald's in the town of Kingisepp in the Leningrad region, Russia June 8, 2022. (Reuters)

Sunday marks a new dawn for Russia's fast-food lovers as former McDonald's Corp restaurants reopen under new branding and ownership, more than three decades after the arrival of the hugely popular Western fast food chain.

The relaunch will begin on Russia Day, a patriotic holiday celebrating the country's independence, at the same flagship location in Moscow's Pushkin Square where McDonald's first opened in Russia in January 1990.

In the early 1990s, as the Soviet Union crumbled, McDonald's came to embody a thawing of Cold War tensions and was a vehicle for millions of Russians to sample American food and culture. The brand's exit is now a powerful symbol of how Russia and the West are once again turning their backs on each other.

McDonald's last month said it was selling its restaurants in Russia to one of its local licensees, Alexander Govor. The deal marked one of the most high-profile business departures since Russia sent tens of thousands of troops into Ukraine on Feb. 24.

McDonald's iconic "Golden Arches" have been taken down at sites in Moscow and St. Petersburg, where they will make way for a new logo comprising two fries and a hamburger patty against a green background. The reopening will initially cover 15 locations in Moscow and the surrounding region.

The new chain's name remains a closely guarded secret. A change in the name of the McDonald's app on Friday to "My Burger" generated some online excitement, but the chain's press team said this was only temporary, the RBC daily reported.

A motto on the app's home page read: "Some things are changing, but stable work is here to stay."

Russian media, citing leaked images of the new menu, have reported the renaming of dishes such as the Filet-O-Fish to "Fish Burger" and Chicken McNuggets to simply "Nuggets". Reuters could not verify the changes.

Headwinds
Govor has said he plans to expand the new brand to 1,000 locations across the country and reopen all the chain's restaurants within two months. But there may be some headwinds.

It takes decades to build a brand, said Peter Gabrielsson, Professor of International Marketing at Finland's University of Vaasa, and the new launch is crucial for the brand's future success.

"Opening day is important because it is the first time consumers can really feel and touch and see the brand and what it stands for," he said. "It's important what the reaction will be and obviously people will be comparing it to McDonald's."

McDonald's, the world's largest burger chain, had owned 84% of its nearly 850 restaurants across Russia and it took a charge of up to $1.4 billion following the sale to Govor, whose GiD LLC had previously run 25 restaurants.

Oleg Paroev of McDonald's Russia has said other franchisees would have the option of working under the new brand, but the traditional McDonald's brand will leave the country. McDonald's has said it will retain its trademarks.

McDonald's last year generated about 9%, or $2 billion, of its revenue from Russia and Ukraine. McDonald's has the right to buy its Russia restaurants back within 15 years, but many terms of the sale to Govor remain unclear.

The TASS news agency said on Wednesday McDonald's would stay open as usual at airports and train stations in Moscow and St. Petersburg until 2023, quoting a source close to Rosinter Restaurants, another franchisee.

"Rosinter has a unique agreement under which the American corporation cannot take the franchise away. They can operate in peace," TASS quoted the source as saying.

Rosinter declined to comment. McDonald's did not immediately respond.



US Close to Several Trade Deals, Announcements to be Made in Next Days, Bessent Says

US Treasury Secretary Scott Bessent speaks to reporters at the US Capitol as Republican lawmakers struggle to pass US President Donald Trump’s sweeping spending and tax bill, on Capitol Hill in Washington, D.C., US, June 27, 2025. REUTERS/Elizabeth Frantz/File Photo
US Treasury Secretary Scott Bessent speaks to reporters at the US Capitol as Republican lawmakers struggle to pass US President Donald Trump’s sweeping spending and tax bill, on Capitol Hill in Washington, D.C., US, June 27, 2025. REUTERS/Elizabeth Frantz/File Photo
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US Close to Several Trade Deals, Announcements to be Made in Next Days, Bessent Says

US Treasury Secretary Scott Bessent speaks to reporters at the US Capitol as Republican lawmakers struggle to pass US President Donald Trump’s sweeping spending and tax bill, on Capitol Hill in Washington, D.C., US, June 27, 2025. REUTERS/Elizabeth Frantz/File Photo
US Treasury Secretary Scott Bessent speaks to reporters at the US Capitol as Republican lawmakers struggle to pass US President Donald Trump’s sweeping spending and tax bill, on Capitol Hill in Washington, D.C., US, June 27, 2025. REUTERS/Elizabeth Frantz/File Photo

The United States is close to clinching several trade deals ahead of a July 9 deadline when higher tariffs kick in, US Treasury Secretary Scott Bessent said on Sunday, predicting several big announcements in coming days.

Bessent told CNN's "State of the Union" the Trump administration would also send out letters to 100 smaller countries with whom the US doesn't have much trade, notifying them that they would face higher tariff rates first set on April 2 and then suspended until July 9.

"President Trump's going to be sending letters to some of our trading partners saying that if you don't move things along, then on August 1 you will boomerang back to your April 2 tariff level. So I think we're going to see a lot of deals very quickly," Bessent said.

Bessent denied that August 1 was a new deadline for negotiations. "We are saying this is when it's happening. If you want to speed things up, have at it. If you want to go back to the old rate, that's your choice," he told CNN, Reuters reported.

The US Treasury chief said the Trump administration was focused on 18 important trading partners that account for 95% of the US trade deficit. But he said there had been "a lot of foot-dragging" among countries in getting closure on a trade deal.

He declined to name countries that were close to a trade agreement, adding, "because I don't want to let them off the hook."

Trump has repeatedly said India is close to signing a deal and expressed hope that an agreement could be reached with the European Union, while casting doubt on a deal with Japan.

Since taking office, the US president has set off a global trade war that has upended financial markets and sent policymakers scrambling to guard their economies, including through deals with the US and other countries.

Trump on April 2 announced a 10% base tariff rate and additional amounts for most countries, some ranging as high as 50%. The news roiled financial markets, prompting Trump to suspend all but the 10% base rate for 90 days to allow more time for negotiations to secure deals, but the process has proven more challenging than expected.

That period ends on July 9, although Trump early on Friday said the tariffs could be even higher - ranging up to 70% - with most set to go into effect August 1.

Bessent, asked about the 70% rate, referred back to the April 2 list, but that did not include such high rates.