McDonald's announces exit from Kazakhstan due to ‘supply restrictions’

McDonald's will exit Kazakhstan due to supply restrictions, the American fast food giant's unit in the Central Asian nation said in a statement on Thursday. McDonald's opened its first restaurant in Kazakhstan back in 2016 and operated 24 restaurants across the country, including in the capital city of Astana and the financial hub Almaty.

"The chain of fast food restaurants operated by Food Solutions (local franchise) will cease its work under the brand of McDonald's in Kazakhstan due to supply restrictions," McDonald's Kazakhstan said on Thursday.

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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.

Though McDonald's claims it is exiting due to supply restrictions, news agency Bloomberg reported on Wednesday that the closure is being done after disruptions triggered by the Ukraine war left Kazakhstan without a substitute for Russian meat supplies.

On its website, McDonald's Kazakhstan did not mention it was being closed due to the war in Ukraine.

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The fast food giant employed 2,000 people in Kazakhstan. At present, the website still shows the logo of McDonald's and the company's menu.

McDonald's, like several other Western brands, terminated its operations in Russia last year following Moscow's full-scale invasion of Ukraine. McDonald's, which had applied 62,000 workers in Russia,was bought by Russian businessman Alexander Govor and the restaurant was renamed "Delicious. Full Stop," news agency AFP reported on Thursday.

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