New standards in hospitality

I held a press conference talking about introducing new standards of hospitality in the McDonald’s system in Russia.
Part of the McDonald’s annual press conference, held on the 6th of February 2019, the key messages were accelerating investments and store openings alongside employing more people and aiming to get closer to 100% locally produced goods (which today are at 98%)

Key Messages Investments

2018 has been a very successful year for McDonald’s in Russia.
– we reached the highest ever sales and
– The highest ever number of visitors in our company history: we served more that half a billion customers in Russia – or as if every citizen of Russia visited McDonald’s 4 times a year.
Today I would like to share with you some exclusive news regarding our plans for 2019 confirming that we are truly committed to Russia and believe in its potential.

  • We will increase our investments: Despite the fact that as per the Bank of Russia foreign direct investments are declining, I am happy to announce that McDonald’s will increase the investments in Russia by over 40% – this is the highest investment in recent years (or the highest increase ever)
  • We will accelerate Store openings: Last year we opened 40 stores, in 2019 we shall open around 60 new stores
  • We will employ more people: we plan to increase our staff by around 10% reaching 55000 employees
  • We aim to get closer to 100% locally produced goods from today’s 98%
  • I am proud to say that we’ll be one of the first McDonald’s markets globally to introduce the new standards of hospitality, about which I will talk more about later today

Key Messages People

  • By the end of 2019 we expect to employ directly around 55 000 employees or 10% more than LY plus over 100 000 additional people through our suppliers
  • We shall invest more than 230 million rubles in people development in training, as well as support Russian Youth through scholarship (more than 4000 students in total already received scholarship, total investment in Scholarship 63 million rubles, 400 more students will receive scholarship in 2019) continuing our tradition to build strong internal talents for the future.
  • The best proof of that is 100% of our store directors and 60% of my management team started their career as crew
  • We believe that happy employees make happy customers so we also plan to increase our salaries and developing additional motivation programs for our employees in 2019 (crew talent, career day at Skolkovo, special program for guest experience leaders – the best will be invited to the global convention )

Key Messages Local Supply

    For the last 30 years we have been building Local suppliers network and reached 98% of local supply,

  • In the next 2 years we aim at reaching 100%, which is unique compared to other McD countries.
  • What is not very known is that thanks to the fact that we share of best practices and demand high quality standards, many of our suppliers are now able to export products abroad.
  • Today 103 out of our 160 Russian suppliers are exporting their products beyond Russia.
  • A good example is our shrimp supplier Atlantis in Kaliningrad who we developed from scratch locally and thanks through sharing know how and best practices is now reaching such a high quality level that he is able to other European countries like e.g. the UK.

Key Messages EOTF

Russia will be one of the first markets in the world where our innovations that we call “experience of the future” will be available in the majority of our stores by the end of 2019. While many players in the industry are focused on price reductions we want to focus on better service and better quality products:
You might already know our self-ordering kiosks and our entry into delivery but there are 2 new introductions which I would like to highlight today:

1. Table service with hostesses: Before the end of 2019 all stores in Russia will be offering table services supported by hostesses. So no longer the need to queue in front of the counter but after ordering on the kiosk you can sit down and wait for your food to arrive. You will experience it live today after the press conference.

2. We completely changed our kitchen layout and it’s processes to ensure that all orders are freshly prepared on order and we eliminated all warm holding bins for burgers waiting to be bought. You can still see them at our competitors, but not any more at McDonald’s. Being the leader of the industry, we aim to move into a new direction, fading away the borders between a full service restaurant and a QSR combining the best of the two worlds: The QSR aspect of

  • affordable
  • good quality food
  • quick service, combined with the full service restaurant
  • table service
  • and individual approach and hospitality to each customer.–2019-02-06/

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Posted on: February 13th, 2019