๏“ ย ย Back
~
2
min read
ยท Posted on
May 18, 2022

Ronald McDonald has officially left the building - in fact, 850 buildings - in Russia

McDonald's is showing solidarity with Ukrainians by withdrawing its business from Russia.

What's the key learning?

  • Research shows customers want businesses to take a stance on social issues.
  • This is a change from the past and big brands are catching up.

๐Ÿ‘‰ Background: Slowly but surely, Western companies have been exiting Russia over its invasion of Ukraine. We've seen everyone from big consulting firms to car makers and financial institutions give Russia the flick.

๐Ÿ‘‰ What happened: Back when the Russian invasion of Ukraine began, McDonald's temporarily closed its Russian stores, but continued to pay employees... a decision that cost them nearly $80 million a month.

๐Ÿ‘‰ What else: Maccas confirmed it'll now sell all 850 of its restaurants in Russia and seek a buyer to employ its 62,000 workers. The de-arching is officially in progress, with Macca's saying it can't ignore the humanitarian crisis.

๐Ÿ”” What's the key learning?

๐Ÿ’ก Once upon a time, corporations could get away with not taking a stance on social issues. That era is over. It's the protest VS profit debate, and protest is winning ๐Ÿ†.

๐Ÿ’ก These days, customers want to associate with businesses that do the right thing. A 2018 survey found that 66% of customers thought it was important for brands to take a public stance on issues their audience cares about.

๐Ÿ’กThink Gilette's stance against toxic masculinity and Nike putting Colin Kaepernick front and centre after his kneeling protest. And now, we have McDonald's (and other companies) leaving Russia to show solidarity with Ukrainians.

Ready to win at money?

Sign up for Flux and join 100,000 members of the Flux family

A button to App StoreGoogle Play store button
Excellent ย 4.9 out of 5
Star rating