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‘Supply restrictions’ force McDonald’s out of Kazakhstan; Report

The McDonald’s unit in Kazakhstan announced on Thursday that it will leave the country owing to supply constraints. In 2016, McDonald’s launched its first location in Kazakhstan. By 2018, it has 24 locations there, including ones in Almaty, the country’s financial centre, and Astana, the nation’s capital. McDonald’s Kazakhstan said on Thursday that owing to supply limitations, the chain of fast food outlets run by Food Solutions (local franchise) will stop operating in Kazakhstan.

The statement said that after opening the chain of restaurants visitors will be offered high-quality products, a varied menu and hospitable service. ‘Fast food restaurants will continue to operate in accordance with the current high standards, values ??and business principles,’ it said.  The fast-food giant pointed out that during its period of activity in Kazakhstan, Food Solutions had paid more than 3 billion tenge (around $ 6.4 million) in taxes to the country’s budget and actively participated in helping the society, transferring more than 80 million tenge to charity.

McDonald’s says that their pullout is being forced by supply constraints, but news agency Bloomberg reported on Wednesday that the shutdown was necessary because the Ukraine war’s disturbances prevented Kazakhstan from finding a replacement for Russian beef supplies. McDonald’s Kazakhstan did not indicate on its website that it was closed as a result of the conflict in Ukraine. In Kazakhstan, 2,000 people were employed by the fast food company. The McDonald’s logo and menu are still visible on the website as of right now.

Following Moscow’s all-out invasion of Ukraine, a number of Western companies, including McDonald’s, shut down their business in Russia last year. The restaurant was rebranded ‘Delicious. Full Stop’ after being purchased by Russian tycoon Alexander Govor, according to AFP. McDonald’s had sought for 62,000 jobs in Russia.

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