Collapse of currency drives McDonald's out of Iceland

[Doctor Cynic]

Source: Globe and Mail

It has endured a banking crisis, a collapsing currency and it came close to “national bankruptcy.” Now Iceland is facing another blow – the loss of McDonald's.

The country's three McDonald's restaurants are set to close by the end of this month after 16 years of operation. Jon Gardar Ogmundsson, who owns the restaurants, blamed the plummeting Icelandic currency, the krona, saying it has driven up the cost of imports.

“With the collapse of the krona our food costs have doubled,” Mr. Ogmundsson said from Reykjavik.

Mr. Ogmundsson said he has to import most of his meat, cheese, bread and sauces for the restaurants. The krona has lost about 80 per cent of its value in the last year, sending the cost of those imports soaring. Mr. Ogmundsson said a Big Mac currently costs 650 krona, or about $5.50 (U.S.). But he would have to hike the price by 30 per cent just to cover the added input costs.

Read more: http://www.theglobeandmail.com/report-on-business/collapse-of-currency-drives-mcdonalds-out-of-iceland/article1338705/

[SoCalNative]

1. Well at least some good is coming out of their financial collapse

No McDonald's crap food in Iceland anymore.

[DBoon]

20. Back to the Icelandic hot-dog stands

Who needs McD's when you've got this?

[Scairp]

38. They only had three in the entire country

How much damage could that have done?

[marmar]

2. The Icelanders will be grateful for this one day.....

nt

[Cha]

3. So how are the other eating places

doing it that aren't going out of business?

http://www.worldtravelguide.net/city/102/restaurant/Europe/Reykjavik.html

[Sirveri]

4. He probably has to buy from a corporate store.

Hence the import cost, as I doubt McD's has a corporate store in Iceland.

[Cha]

6. Ah, yes..I see

the difference.

[comtec]

36. I see you havent actualy lived in Europe

As odd as it sounds, McDonads IS good work.
Here there are strong labor laws for one. Second McDonalds pay rather well.
Another thing is service.
McDonalds has it.
Most here (and I can only speak for holland) don't know what service is.

Also McDonalds is cheap... yes C H E A P compared to any other restaurant.
The food isnt the best - but it is nice -, but it's cheap and filing.
Also the Mac here genuinely taste better.

We dont go much, actually we are trying desperately to avoid them (hard when u live 2 blo9cks from one LOL), but when we go back to America for a visit we swear the food is worse!

Granted I prefer Wendys (used to work there, and I know the quality of my restaurant I worked at) and smaller one-off shops.

But what most americans railing against McD don't understand (understandably) is that McD is in fact a good place here. We don't have the competition here.

and "real restaurants" are expensive.. 2-3x per person more expensive!

and to be honest not always worth the extra cost!

It's a pity McD is puling out because of the psychological effect more than anything else (the dozens of jobs the 3 stores will loose) this will be a major blow to Iceland!

So no, this is NOT good. it's very very bad. pull your elitist head out of your special non-stinky ass and look around, the world works differently out here!

[WriteDown]

37. People just don't know...

McDonalds' in Europe tend to be spotless. They rival many actual sit-down restaurants in the US. Then again, people don't just throw their trash everywhere and destroy bathrooms.

[comtec]

40. v true!

cities also spend money keeping their city clean, and put garbage cans all over, so ppl dont feel the need to toss on the ground lol.

After spending some time in Spain, I came back to holland and realized how sparkling clean this country is. Why i could eat off the street it's so clean! and no im not being sarcastic (for once) LOL

It's amazing what happens when you invest a moderate amount of money in compact street sweepers and people to keep the greens trimmed and maintained.... AND it employs people, who buy things, which helps tax income for the city, etc. =]

[MattBaggins]

45. I will second the claim that McDonald's taste better in Europe

I was never able to pin it down but to me it seemed that they were using only real salt as opposed to a blend of metal halides. The salty tang in a European "Hamburger Royal" was more to my liking.

[Euromutt]

42. They aren't importing their ingredients from Germany, for a start

Which is what the McDonalds franchises had to do. I suspect the local eateries have a lot more fish items on the menu.

[JVS]

5. While Iceland can do without McDonalds, as an importer of food, they are in a precarious situation.

[izquierdista]

9. Back to turnips and puffins for supper

I could stomach that, just as long as no hakarl is on the menu.

[Valdi]

43. . While Iceland can do without McDonalds, as an importer of food, they are in a precarious situation

Well, Iceland is a food exporter, the fish is exported all over the world.
Ca 70% of the food consumed in Iceland is locally grown or processed and there is a wide variation of both meat and vegetable products, it´s not just shark and puffin :)

[Roland99]

7. Republican response....

Ok, ok, ok. There *is* global warming. Icelanders can just start raising cattle and growing corn now. They'll be fine.

[Gman]

8. What's Micky D's going to do here when the dollar collapses

and it ain't far away. It's not Obama's fault, it's more collateral damage from the Bush years.

[imdjh]

10. I really don't get why MCDonald's remains a success. I get how they became one.

I understand how Mcd became a success. Other than Howard Johnson's, there was no chain restaurant out there which offered the kind of coverage and consistency. But the other offerings, while not fabulous, are simply better.

[WriteDown]

22. One word...

McNuggets. Okay, maybe two more: Big Mac. Now I'm hungry.

[natrat]

41. omg you actually eat that stuff? the frys maybe but the rest of it, beyond disgusting

[SoCalNative]

13. I for one hope they are driven out of business

eom

[harkadog]

15. That will be great

Hundreds of thousands of low skill low wage workers out of a job. How many are you going to employ?

[Codeine]

30. That will be fabulous.

Lots of added unemployment and empty buildings gathering dust. No more flexible starter jobs for high-school kids looking for their first paycheck.

And this all because you dislike the Royale with Cheese?

[alfredo]

11. Iceland embraced a Milton Friedman/free market economic model.

Maybe they should have done some research before taking the plunge.

[excess_3]

12. Venezuela of the North

while trying to find out the tax rate on imported food,

I saw the Iceland has currency restrictions
similar to Venezuela,

[JackRiddler]

14. Demonstrating once again why GDP is hardly the last measure of wealth.

[excess_3]

16. GDP needs a 'BS factor' correction ...

GDP needs a 'BS factor' correction,
for rigged exchange rates,
artificial prices
meaningless transactions
etc

[JackRiddler]

31. Actually I was talking about the production of illth...

Illth would be the opposite of wealth: using labor, resources and capital in a fashion that produces bads rather than goods. McDonalds is an excellent example. The largest single illth producing industry in the US would be the Pentagon system, but still only a fraction of the illth that this nation pumps out.

But if you eliminated illth, there might be 50 to 80 percent "unemployment" (meaning, the potential for freedom from the work machine).

[era veteran]

17. Good, chain restaurants suck

I'm in the business . we call our place a restaurant , they call theirs stores. They serve shit meat , shit veg and shit for sandwiches. Screwing their employees is part of their store culture, I work & manage an independent place, We only keep people who care & work hard. I serve clean & wholesome Food( not product). All chain joints suck. Their food is laced with chemicals,sugar,salt, & MSG. Please go to the few independents that are left. If you eat at Applebees can you really taste anything different than O' Charlies an hour later. Please patronize independents in your town. Our city had the first McPukes to go under. Iceland will reclaim some culture with the Mac fuckers out.

[WriteDown]

21. But they are delicious....

There are times when I could kill for a 20 piece McNugget.

[Regret My New Name]

24. iccck...

I can get the occasional craving for fries or a big mac, but McNuggets? eeeeek

[WriteDown]

25. They went through a bad period, but now they are back...

to their true delicious form. I do miss when McDonald's fries were made with beef tallow. Their fries were untouchable back then.

[Love Bug]

23. I agree. You usually get better food at a mom & pop place

[intaglio]

18. So back to traditional Icelandic delicasies

Hakarl - Rotted shark

Selshreyfar - Sour seal flippers

Hrutspungar - sour rams testicles


http://www.bbc.co.uk/dna/h2g2/A3895653

[ret5hd]

19. Hrutspungar...mmmmmm...

[PassingFair]

26. Hakarl.....yum!

Hákarl is traditionally prepared by gutting and beheading a Greenland or basking shark and placing it in a shallow hole dug in gravelly-sand, with the now-cleaned cavity resting on a slight hill. The shark is then covered with sand and gravel, and stones are then placed on top of the sand in order to press the shark. The fluids from the shark are in this way pressed out of the body. The shark ferments for 6-12 weeks depending on the season in this fashion.

Following this curing period, the shark is then cut into strips and hung to dry for several months. During this drying period a brown crust will develop, which is removed prior to cutting the shark into small pieces and serving. The modern method is just to press the shark's meat in a large drained plastic container.


:puke:

[MattBaggins]

46. Don't you have to ferment it though

or the flesh is poisonous?

[Phoonzang]

27. Considering what Icelanders eat normally, I don't think this is an improvelment.

[Ferret Annica]

28. This whale murdering nation is going to lose it's McDs,

How sad. Not.

Too bad we can't get rid of our mcDs in the U.S. too.

[WriteDown]

29. Less McD's eaten, more whales eaten....

But it will be local whales at least. :eyes:

[skoalyman]

32. Maybe they should have added Hakarl to the menu

Mc Hakarl nuggets :beer:

[WriteDown]

33. I think McRibs are already made out of that.

:)

[skoalyman]

34. I used to like there fries and Bk's fries too, but now they get to hard to eat

unless they're cooked fresh.:hi:

[Regret My New Name]

35. Cow murdering nations

[and-justice-for-all]

39. How fortunate for Iceland...nt

[fascisthunter]

44. Hmmmmm... maybe if our currency gets more worthless

McDonalds will leave the US. Could ya imagine?