Goodbye to golden arches in Kazakhstan, as McDonald’s exits market

McDonald’s is pulling out of the Kazakhstan market, after the fast food giant’s local business appeared to be a casualty of collateral damage from the Russia-Ukraine war.

The brand came out of the Central Asian country with 20 million opinions shared on social media and among onlookers near one of Almaty’s restaurants where workers removed large white letters from the top of the building on Friday.

“This is one of the best places I’ve stayed with my friends,” said local resident Karina, who gave only her first name.

“I doubt any other company will be able to compete with McDonald’s in Kazakhstan today because no other fast food chain can replicate the menu that McDonald’s has at the same price.”

Others described the brand’s departure as a minor inconvenience or said they would check out other fast food joints.

Chains such as KFC, Burger King, and Hardee’s have restaurants in Kazakhstan and Popeyes said last month it would open dozens of restaurants in the former Soviet republic in partnership with local company Centras Group.

Beef imported from Russia

Many Kazakhs, proud of their meat-centric cuisine, could not believe that McDonald’s Kazakh licensee, Food Solutions KZ, could not produce beef patties locally and import them from Russia until the war forced them to stop.

However, industry insiders say the certificates and audits required by US brands are expensive and lengthy, and local meat producers don’t want to bother.

Food Solutions did not immediately respond to an email seeking comment. McDonald’s said the agreement with the licensee had been terminated but did not respond to questions about the reason.

The Kazakh company said on Thursday it would reopen the restaurant under a new brand due to “supply issues.”

Many Kazakh businesses are facing supply problems due to Russia’s invasion of Ukraine and Western sanctions against Moscow. Neighboring Russia is Kazakhstan’s main trading partner.