McDonald's Russia fears are realized: Meet 'Uncle Vanya's'
March 16, 2022 01:33 PM
When McDonald's shuttered its Russian stores, worries arose that they'd be reopened under different—and far from McDonald's-approved—management. Apparently those worries were well-founded.
ALLY MAROTTI
Bloomberg
UPDATE: Uncle Vanya isn't the only threat to Russian McDonald's
Step aside McDonald’s, Uncle Vanya is ready to step up to the griddle.
Since the Chicago-based fast-food giant shuttered its nearly 850 stores in Russia last week amid the war in Ukraine, fears have circulated that Russian parties might try to infringe on McDonald’s trademark.
It didn’t take long.
An application was filed in recent days with the Russian government to trademark a logo for a restaurant chain that turns McDonald’s signature Golden Arches brand on its side, along with the words "Uncle Vanya."
Trademark experts began discussing the potential last week that Russia might reopen shuttered McDonald’s locations. Russia’s Ministry of Economic Development had said earlier this month that it was considering lifting restrictions on trademarks for companies that had stopped doing business there. It also essentially legalized patent theft from parties affiliated with “unfriendly” countries.
The debacle threatens 30 years of brand-building in Russia for McDonald’s.
Theoretically, the reopened restaurants could sell burgers branded as Big Macs, but it would not be the same food. Experts say that could confuse consumers, and that confusion could continue when McDonald’s reopens its stores or takes control of them again.
Trademark lawyer Josh Gerben tweeted about the Uncle Vanya’s application. He notes the words “Uncle Vanya” accompany the McDonald’s logo in the application.
McDonald’s opened its first location in the then-Soviet Union in Moscow’s Pushkin Square in January 1990. Tens of thousands of people lined up for hours to get their first taste of the West. As such, many say the Golden Arches have become a proxy of sorts for America and globalization.
Some had predicted McDonald’s might fall victim to anti-American sentiment even before Russian President Vladimir Putin invaded Ukraine more than two weeks ago. The Chicago-based company shut down its 108 stores in Ukraine in short order after the war began, but it held on to its Russian stores even amid mounting pressure.
Sales at those locations in both countries represent about 9% of the company’s overall revenue, so closing them was a hit to the company's top line. McDonald’s continues to pay the salaries of its workers in Ukraine and its 62,000 Russian employees. Executives have since said the company will lose $50 million each month the Russian stores are closed.
Experts have wondered how long it might take McDonald’s to regain Russian consumer trust once—and if—it reopens its locations in the country, 84% of which are company owned. If Russia does lift trademark restrictions, that question is further complicated.
March 16, 2022 01:33 PM
When McDonald's shuttered its Russian stores, worries arose that they'd be reopened under different—and far from McDonald's-approved—management. Apparently those worries were well-founded.
ALLY MAROTTI
Bloomberg
UPDATE: Uncle Vanya isn't the only threat to Russian McDonald's
Step aside McDonald’s, Uncle Vanya is ready to step up to the griddle.
Since the Chicago-based fast-food giant shuttered its nearly 850 stores in Russia last week amid the war in Ukraine, fears have circulated that Russian parties might try to infringe on McDonald’s trademark.
It didn’t take long.
An application was filed in recent days with the Russian government to trademark a logo for a restaurant chain that turns McDonald’s signature Golden Arches brand on its side, along with the words "Uncle Vanya."
Trademark experts began discussing the potential last week that Russia might reopen shuttered McDonald’s locations. Russia’s Ministry of Economic Development had said earlier this month that it was considering lifting restrictions on trademarks for companies that had stopped doing business there. It also essentially legalized patent theft from parties affiliated with “unfriendly” countries.
The debacle threatens 30 years of brand-building in Russia for McDonald’s.
Theoretically, the reopened restaurants could sell burgers branded as Big Macs, but it would not be the same food. Experts say that could confuse consumers, and that confusion could continue when McDonald’s reopens its stores or takes control of them again.
Trademark lawyer Josh Gerben tweeted about the Uncle Vanya’s application. He notes the words “Uncle Vanya” accompany the McDonald’s logo in the application.
McDonald’s opened its first location in the then-Soviet Union in Moscow’s Pushkin Square in January 1990. Tens of thousands of people lined up for hours to get their first taste of the West. As such, many say the Golden Arches have become a proxy of sorts for America and globalization.
Some had predicted McDonald’s might fall victim to anti-American sentiment even before Russian President Vladimir Putin invaded Ukraine more than two weeks ago. The Chicago-based company shut down its 108 stores in Ukraine in short order after the war began, but it held on to its Russian stores even amid mounting pressure.
Sales at those locations in both countries represent about 9% of the company’s overall revenue, so closing them was a hit to the company's top line. McDonald’s continues to pay the salaries of its workers in Ukraine and its 62,000 Russian employees. Executives have since said the company will lose $50 million each month the Russian stores are closed.
Experts have wondered how long it might take McDonald’s to regain Russian consumer trust once—and if—it reopens its locations in the country, 84% of which are company owned. If Russia does lift trademark restrictions, that question is further complicated.
