McDonald and Subway Fight For Prominence at Russia

McDonald and Subway Fight For Prominence at Russia

It’s being more than two decades that the outlet of McDonald’s located at Moscow’s Pushkin Sqaure has started offering a golden arch to its communist eatery options. This alteration is viewed as a defensive approach that is used by McDonald, the fast food chain, to win over the competition from other organizations.

Mac Donald is considered as the origin of fast food eatery that has made the concept of burgers and fries popular in the country along with convincing the people of Russia to eat with hand. To keep the rivals, including Burger King Worldwide Inc., Yum! Brands Inc. Subway Restaurants, Wendy Co., MacDonald is up for some growing challenge.

Dmitry Mikhailov, a consultant of 30 years of age says, “I get to see lots of subways in the city of Moscow these days. I mostly pass by at least five to six outlets on my way to home.” He also adds that McDonalds is always crowded as they allow people to enjoy food at the quickest and easiest.

To keep away their rivals and improve the sales record, MacDonald will be turning to franchising this year. This fast food company has been using this model for 80 percent of their outlets throughout the world, but is yet to start it in Russia. It is reported that the company has selected OAO Rosinter Restaurant Holding for its franchise outlet in the local regions of Patio and Planet Sushi, added with deals of foreign franchise such as T.G.I Friday’s which are estimated to operate at various stations and airports of the nation. The company of MacDonald also plans to operate with this model in order to start its business in faraway areas such as Siberia.

It is observed that Russia is considered as a priority market for Mac Donald, and opening the model of franchise will be helping them operate the business in a successful and systematic manner” says Khamzat Khasbulatov, the head of MacDonald’s operation in the nation of Russia. To keep the Russian market in a high position is a crucial need of MacDonald in order to win the European market completely. It is estimated that this market counts for approximately two-fifth of the revenue worldwide for this organization. In the fiscal year of 2012, there was a drop of revenue in this region, in spite of 42 percent growth in the Russian market.

Subway,a rival of MacDonald has opened around 432 outlets at Russia within a time span of three years, having over more than 200 franchises. Some of the dishes that are popular at Subway Russia include shrimp sandwiches and other specialties, including beer which is not on offer at McDonalds. In the year 2011, the sales of Subway saw immense growth by almost double, as per the reports and data revealed by researcher Euromonitor.

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