Administrators Gail Posted October 30, 2009 Administrators Share Posted October 30, 2009 McDonald's to quit Iceland as Big Mac costs rise David Batty The Guardian, Tuesday 27 October 2009 Article Iceland will become one of the few European countries without a McDonald's. McDonald's is pulling out of Iceland next week, in a fresh blow to the island nation a year on from a financial crash that nearly left it bankrupt. The closure of the fast-food giant's three restaurants on Monday means Iceland will become one of the few European countries, including Albania and Bosnia and Herzegovina, without a McDonald's. Jon Ogmundsson, managing director of Lyst, holder of the McDonald's franchise in Iceland, said the rising cost of importing ingredients and no sign of economic recovery meant the business was no longer financially viable. He said the cost of McDonald's ingredients, most of which are sourced from Germany, had doubled in the last 18 months as a result of severe depreciation of the Icelandic krona and high import taxes. A Big Mac in Reykjavik sells for 650 krona (£3.22), but the 20% price rise required to make a decent profit would have increased it to 780 krona (£3.86), which would have made the Icelandic version of the burger the most expensive in the world. "I've sold more hamburgers in the last few months than ever before, but the cost is prohibitive. It just makes no sense," Ogmundsson told Reuters. "For a kilo of onion, imported from Germany, I'm paying the equivalent of a bottle of good whiskey.". McDonald's opened in Reykjavik in 1993. The company said in a statement that it would not seek a new partner in Iceland owing to the state of the economy and the complexity of doing business in an island nation of just 300,000 people. Iceland's banks collapsed at the height of the global credit crisis, devastating the country's economy and leaving it dependent on a $10bn aid package led by the International Monetary Fund. It is not the first time that McDonald's, which operates in more than 119 countries on six continents, has pulled out of a country. In 2002 it withdrew from seven countries, including Bolivia, which had poor profit margins, in a cost cutting exercise. Quote Isaiah 32:17 And the work of righteousness shall be peace; and the effect of righteousness quietness and assurance for ever. Link to comment Share on other sites More sharing options...
Moderators Nan Posted October 30, 2009 Moderators Share Posted October 30, 2009 I heard this on our news here and made a comment to someone who lives in Iceland. This is the reply I got....transposed from Facebook (which I hope is legal to do!!) Icelander Our TV manager (his grandfather was my Sabbath School teacher when I was a child) made fun of the news as it has appeared in many other countries. The truth is that the American McDonald meat has become so expensive that the Icelandic proprietor has left the Mc chain, changed the name and now is using superior domestic meat. People seem delighted to get better hamburgers. October 27 at 4:15pm NAN Good on him! October 27 at 6:38pm · Icelander A note in the news says they will also be serving a greater variety of locally grown vegetables - and I understand there will be better choices for vegetarians as well. Wed at 8:03am Quote Link to comment Share on other sites More sharing options...
Administrators Gail Posted October 30, 2009 Author Administrators Share Posted October 30, 2009 Quote Isaiah 32:17 And the work of righteousness shall be peace; and the effect of righteousness quietness and assurance for ever. Link to comment Share on other sites More sharing options...
Woody Posted October 30, 2009 Share Posted October 30, 2009 Thanks for this information Gail. This is sad news for the Icelanders. I've been to Iceland ... it's a beautiful country. I feel for them having to survive without a big Mac. Quote May we be one so that the world may be won. Christian from the cradle to the grave I believe in Hematology. Link to comment Share on other sites More sharing options...
Members phkrause Posted October 31, 2009 Members Share Posted October 31, 2009 I had not heard anything about that. But no great loss I'd say. pk Quote phkrause Obstinacy is a barrier to all improvement. - ChL 60 Link to comment Share on other sites More sharing options...
Members phkrause Posted October 31, 2009 Members Share Posted October 31, 2009 Well dgrimm it doesn't effect me one way or the other. If I want a hamburger I'll either buy some real good stuff at the store or go to Wendy's and Burger King first. Besides I haven't had a burger in many years. pk Quote phkrause Obstinacy is a barrier to all improvement. - ChL 60 Link to comment Share on other sites More sharing options...
Members phkrause Posted October 31, 2009 Members Share Posted October 31, 2009 And I was just letting you know that I really didn't need to keep up with that news dgrimm. pk Quote phkrause Obstinacy is a barrier to all improvement. - ChL 60 Link to comment Share on other sites More sharing options...
Members phkrause Posted October 31, 2009 Members Share Posted October 31, 2009 pk Quote phkrause Obstinacy is a barrier to all improvement. - ChL 60 Link to comment Share on other sites More sharing options...
Woody Posted October 31, 2009 Share Posted October 31, 2009 HEY PKRUASE OK I accept that dgrimm60 So you're accepting one of pk burgers? What about me ??? Do I get one? Quote May we be one so that the world may be won. Christian from the cradle to the grave I believe in Hematology. Link to comment Share on other sites More sharing options...
Members phkrause Posted October 31, 2009 Members Share Posted October 31, 2009 I guess he wants to keep them all to himself Redwood! pk Quote phkrause Obstinacy is a barrier to all improvement. - ChL 60 Link to comment Share on other sites More sharing options...
Woody Posted October 31, 2009 Share Posted October 31, 2009 Quote May we be one so that the world may be won. Christian from the cradle to the grave I believe in Hematology. Link to comment Share on other sites More sharing options...
Members phkrause Posted October 31, 2009 Members Share Posted October 31, 2009 pk Quote phkrause Obstinacy is a barrier to all improvement. - ChL 60 Link to comment Share on other sites More sharing options...
Stan Posted October 31, 2009 Share Posted October 31, 2009 Iceland is the lucky country, IMHO Quote If you receive benefit to being here please help out with expenses. https://www.paypal.me/clubadventist Administrator of a few websites like https://adventistdating.com Link to comment Share on other sites More sharing options...
Woody Posted October 31, 2009 Share Posted October 31, 2009 Iceland is the lucky country, IMHO Yes. They certainly are blessed with beautiful countrysides. Quote May we be one so that the world may be won. Christian from the cradle to the grave I believe in Hematology. Link to comment Share on other sites More sharing options...
Dr. Shane Posted October 31, 2009 Share Posted October 31, 2009 So McDonald's has failed to export America's obesity problem to Iceland. I know Latin America was better off without McDonald's. Iceland probably is too. Quote Pastoral Family Counselor... Find me at www.PostumCafe.com Author of Peculiar Christianity Link to comment Share on other sites More sharing options...
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