McDonald’s in Iceland exit
FAST FOOD chain McDonald’s is closing all of its Icelandic operations in the wake of the country’s financial crisis, it said yesterday.
The world’s largest fast-food business said it is pulling the lid on its three Icelandic restaurants because the economy and other challenges have made doing business there financially impossible.
The closures of the restaurants, which are operated by franchisee Jon Ogmundsson, will take effect from 31 October.
“The unique operational complexity of doing business in Iceland combined with the very challenging economic climate in the country makes it financially prohibitive to continue the business,” McDonald’s European arm said yesterday.
“This complex set of challenges means we have no plans to seek a new partner in Iceland,” it added.
Iceland’s banks collapsed at the height of the downturn, devastating its economy and leaving it dependent on a $10bn (£5.8bn) aid package led by the International Monetary Fund (IMF). Ogmundsson has operated the restaurants since 2004.
The chain opened its first Icelandic store in 1993, when the then Prime Minister David Oddsson ate the first Big Mac.