McDonald's Kazakh licensee gives up franchise

Supply issues sited as cause of closure
calendar icon 5 January 2023
clock icon 1 minute read

The Kazakh licensee of McDonald's Corp will no longer operate under the US corporation's brand "due to supply issues", Reuters reported, citing the company, Food Solutions KZ, on Thursday.

Food Solutions KZ was forced to temporarily close its restaurants in November after cutting ties with Russian companies and running out of supplies, three sources with knowledge of situation had told Reuters.

The Kazakh company said in a statement on Thursday it would soon reopen its restaurants to serve the public in the Central Asian nation of 20 million under a new brand.

The exit highlights the supply issues faced by many Kazakh businesses in the wake of Russia's invasion of Ukraine and the Western sanctions against Moscow that followed. Neighboring Russia is Kazakhstan's main trading partner.

Asked earlier this week to comment on a media report saying it would exit the Kazakh market, McDonald’s declined to comment.

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