McDONALD’S CELEBRATES 20 TH ANNIVERSARY IN RUSSIA 20% growth is expected for 2010 in Russia, the fastest growing market of McDonald’s Europe • More than 2 billion customers served since 1990 • 25,000+ jobs created • 100,000+ jobs created in McDonald’s suppliers’ companies • Plans to open 40-45 restaurants in 2010 • Fastest growing market in Europe (MOSCOW ─ Feb. 1, 2010) McDonald’s Corporation announces plans for 20 per cent growth th in Russia in the year of its 20 Anniversary in the market. On January 31, 1990, its first day of opening in Pushkin Square, the first McDonald’s restaurant in Russia, served more than 30,000 customers. Twenty years later it remains one of the busiest McDonald’s restaurants in the world, having welcomed more than 137 million customers in its lifetime. "Congratulations to McDonald's Russia for 20 great years, with many more to come," said McDonald's CEO Jim Skinner in his remarks made at a press event. "It began as a dream and now is one of our shining markets in McDonald's global business. That's why we're making a significant investment in Russia for 2010. At McDonald's our focus is always on the customers so I want to say 'Thank You' to our Russian customers for choosing McDonald's again and again for 20 straight years." It all started with a chance meeting between George Cohon, former president of McDonald’s Canada and founder of McDonald’s in Russia, and a Soviet Olympic delegate at the 1976 Montreal Olympic Games. 12 years of negotiations followed between McDonald’s and the Moscow City Government before the first restaurant was opened for business to break all time sales records on its first day. Since then, McDonald’s Russia has served a total of 2 billion customers - more than 950,000 customers every day - and has become the fastest growing market for McDonald’s in Europe. During these years McDonald’s has also made a substantial contribution to the Russian economy by employing 25,000 people in its restaurants and its central office, while at the same time creating over 100,000 jobs at its suppliers’ companies in Russia. Those employed also had great opportunities to grow: more than 1,000 people who started as restaurant employees are now in management positions, including most of the company’s senior management based in Russia. 1 McDonald’s has also played its role in the development of Russia’s foodservice, agriculture and processing industries. When McDonald’s first arrived in Russia 80 per cent of raw materials had to be imported. Since then, McDonald’s has developed a local supply chain, and now sources 80 per cent of its products from a pool of more than 130 independent Russian suppliers, all of whom adhere to McDonald’s strictly controlled quality standards. “The celebration of 20 years of McDonald’s in Russia is one which would not be possible without all the customers and employees that have served and been served in our restaurants.” – pointed out Khamzat Khasbulatov, President of McDonald’s Russia. - “I’d like to thank them for their part in our success. Throughout our history, we are pleased to have employed so many local people, contributed to the local economy and developed local products as we grow our brand. The long term opportunity in our market remains strong. We will continue to match consumers’ changing lifestyles and needs by offering new services, new occasions to visit, and new menu offerings. ” The pace of growth is also accelerating as the company announces its expansion strategy to grow by 20 per cent in 2010. According to these ambitious plans an average of 40-45 new restaurants will be added to the current 245 units located in more than 60 Russian cities. Each restaurant opening will create approximately 100 new job opportunities for local citizens adding up to a total 4000 - 4500 new jobs in 2010. Expansion also includes the re-imaging of restaurants through re-design and re-modelling, as well as adding new services including the successful McCafés and new menu offerings to meet changing needs of customers. “Our customers can look forward to an exciting future including extended opening hours, a significant breakfast offering and the growth of our Drive-Thru services” – Khasbulatov adds. “The story of Russia’s growth over the past twenty years is one that I am very proud of. - said Denis Hennequin, president of McDonald’s Europe. – It reflects McDonald’s sustained vision and business strategy of upgrading experience and expansion across Europe. McDonald’s employees in Russia have worked hard to build a modern, relevant business, just as McDonald’s across Europe has strived to reinvent our category, and move from “Fast Food to Good Food Fast” to meet the changing needs of today’s consumers and employees. This is an exciting time for our business in Europe” – Hennequin added – “as we continue to grow our market share in mature markets as well as expand our business in Central and Eastern Europe. Russia remains a significant growth opportunity in Europe, and McDonald’s will continue to invest in its economy, people, supply chain and restaurants.” In 2005 McDonald’s contributed to the foundation of international charity organisation Ronald McDonald House Charities (RMHC). Since then RMHC Russia has donated more than 330 million rubles to local charities. RMHC’s main legacy is the Ronald McDonald Center - a sports and health facility for children with health disabilities which is attended weekly by more than 400 children. RMHC opened 10 Family Rooms in medical institutions in different cities across Russia to offer comfort and support for families of children undergoing long term 2 medical treatment. More than 34,000 children and their families have stayed there, benefiting from the home-away-from home atmosphere. *** About McDonald’s Europe McDonald's Europe is the region’s leading foodservice retailer with more than 6,700 restaurants in 39 countries serving over 12 million customers a day. Almost 75% of McDonald's restaurants in Europe are owned and operated by independent local business men and women. For more information, please visit our website at www.mcdpressoffice.eu. About McDonald’s Global McDonald's is the leading global foodservice retailer with more than 32,000 local restaurants in more than 100 countries. Photography and video footage A selection of archive photography and video footage illustrating the growth of McDonald’s in Russia over the past 20 years is available to download from here: [INSERT URL] Media Relations Contacts: Sveta Polyakova +7-495-755-6600 (office) +7-985-768-6104 (cell) sveta.polyakova@ru.mcd.com Walt Riker +01-630-623-7318 (office) +01-630-258-8680 (cell) walt.riker@us.mcd.com Agnes Vadnai McDonald's Europe +44 207 800 4884 (office) +44 7590 965 539 (cell) agnes.vadnai@uk.mcd.com www.mcdpressoffice.eu 3