Drive-Thru at McDonald's Iceland
All three McDonald’s franchises in Iceland will be closing their doors at the end of this month after the collapse of the Icelandic krona last year destroyed the fast-food chain’s profits.
Franchise holder Lyst ehf says the problem lies in the fact that they must import all their ingredients from abroad, doubling their costs with the devalued krona.
“We would have to raise our prices by 20 percent to get the margin needed on our products,” Magnus Ogmundsson, Lyst chief executive officer, said. “That would have sent a Big Mac to 780 kronur” ($6.36), compared with the 650 kronur it costs today.” Ogmundsson says he does not see the problem correcting itself in the near future.
The Icelandic krona collapsed last year following the failure of the country’s biggest banks. Offshore, the krona slumped as much as 80 percent against the euro, while capital restrictions this year have failed to prevent an 8.1 percent decline, making the krona the second-worst performer of the 26 emerging-market currencies tracked by Bloomberg.
McDonald’s first opened in Iceland in 1993 and the first Icelander to eat a Big Mac was David Oddsson, who later went on to become head of the Central Bank, widely held responsible for the currency collapse.
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Good enough for them. McDonald's sucks ducks eggs.
McDead
I need one more sticker for 1 million dollars playing McD’s Monopoly. What is I gonna do?
I would be very upset if McDonalds pulled out of South Africa. It's one of the few fast food chains that are open 24hrs and the Filet o Fish is one of the best tasting meals around. :yes:
You can bet the 9-1-1 operators will be happy about less calls from angry blacks in the drive thrus.
Eating most things at McD's is like biting into a deep-fried block of salt.
The Big Mac is really health food. It has a balance of meat for protein, vegtables like lettuce and the bun is carbs.
What happens to Roland McDonald Icelandic clown?
Screw him!! What happens to th Hamburglar and Birdie!!