- McDonald’s has 847 stores in Russia.
- 62,000 full and part time employees.
The company after public pressure announced they’ll be pausing all their stores in Russia, but to a lot of people’s shock, paying all staff normally.
Which is actually a pretty big chunk of business for Russia.
- 23.5 billion was the companies revenue in 2021.
- 7.5 billion was the profit.
Meaning if this Russia freeze went on for an entire year, it’d be 2.5% of total revenue and cost them 8% of profit.
Which McDonalds has has 39,198 locations globally, putting Russia at only 2.1% of business.
Showing the company is willing to give up 8% of profit, for a country only representing 2% of stores and likely not even 1% of revenue or profit.
And the reason they are doing this is very likely the fear this ends and they will have to go back to business and rehire an entire staff of 62,000.
Which Russia is an interesting thing for McDonald’s, where they launched their first store in 1990 and in 30+ years, grew it to over 60,000 in staff.
This is a really amusing example of showing how labor does matter for companies and how the company would rather take a massive loss over having to rehire tens of thousands of people again.
Which I don’t think they’ll do this forever and believe eventually they’d just forfeit Russia if this last more than six months, but still something good to realize.