Despite negotiations with the Kazakh government to reopen McDonald’s restaurants, there is a high chance the fast food chain may opt to leave the country, QazMonitor reports citing Bloomberg.
When McDonald’s exited the Russian market due to sanctions last May, the chain also banned its franchisee in Kazakhstan to buy Russian meat supplies. In mid-November, McDonald’s, owned by Food Solutions KZ, announced that it was closing its restaurants because of a supply shortage.
The State Revenue Committee under the Kazakh Ministry of Trade stepped in to help the business reopen by organizing negotiations with local meat producers. Aset Mashanov, director of Food Solutions KZ, said the restaurant was open to considering domestic suppliers.
Among the businesses that offered their products were "The Meat Union of Kazakhstan", "The Union of Poultry Farmers of Kazakhstan'', and "The Dairy Union of Kazakhstan".
However, according to Bloomberg’s sources, McDonald’s could not buy meat from local or European suppliers due to high prices and transportation costs. This would mean running a business at a loss, quoted Bloomberg.
McDonald's is yet to comment on the statement.
