Russia Loves the Golden Arches

By Kevin Spak,  Newser Staff
Posted Oct 16, 2007 12:08 PM CDT

(Newser) – Russians can’t get enough of McDonald’s, which is a good but frustrating situation for the fast-food giant. The company could easily open 100 new restaurants, executives tell the Journal, save for two things: their new corporate philosophy, which values quality over growth, and Russia’s rampant bureaucracy.

McDonald's is limiting itself to 15% growth in Russia, making it among the company’s fastest-growing markets. But red tape—opening one location can require 200 signatures—and skyrocketing real estate prices have waylaid 20 of the 32 restaurants planned for this year. In place of new stores, McDonald's is trying to make existing locations operate more efficiently.