Globalization? Not what you thought! Russian McDonald's, and Consumer Insights

What can we learn from the decision of McDonald’s to temporary close their restaurants in Russia?

Globalization is often associated with the following statement: The world is becoming a small village. I can buy the same product everywhere, especially when it comes to global companies such as McDonald’s and Coca-Cola. But what does it mean for the consumers to use those products? Do they feel like they are in small village? How does consumer adopt global products as opposed to local products made in their own country?

The New York Times reported on March the 8th that after “facing rising pressure to respond to Russian invasion of Ukraine, several iconic American food and beverage companies said they are pausing operations in Russia.” (Creswell, Julie NYT). McDonald’s was the first to temporary close 850 restaurants in Russia after three decades. From an Anthropological point of view, the meaning behind this decision relates to the symbol of McDonald’s as a leading global company and an American icon fast food restaurant. The first McDonald’s restaurant opening in Moscow in 1990 was a big event. It symbolized to some extent, the beginning of an opening from Socialist countries to the West. While the original McDonald’s restaurants in the USA represent the “fast food” concept of processed food served and a quick meal that you can take with you away. In Russia, the coast of a typical McDonald’s meal was high. The value for McDonald’s in Russia was higher since it was something new, from the West that only rich people could afford. Nevertheless, long lines started to form, and people were waiting for hours to taste the American spectacle.

In present days when McDonald’s is shutting down business in Russia, it signifies an end of an era. Now with the closing of the McDonald’s restaurants, it seems like the ‘Iron Curtain’ is coming down again. But this is only half of the story regarding globalization and consumer insights.

Muscovites are lining up for their first taste of McDonald's (Credit: The Internet).

When it first opened, many Russians had been waiting for hours to taste the American marvel. Clearly, the Russian consumers perceived Capitalist fast food as something expensive for the few who could afford it. At the beginning, the distinction was clear. Russian food and Capitalist fast food are not the same. However, something extremely interesting happened. According to the Anthropologist Melissa Coldwell who conducted ethnographic research in Moscow in 2000. New trend has formed. Russian people began to prepare McDonald’s food in their private homes. Mostly French-Fries and strawberry milkshakes. It was more than just imitating the McDonald’s menu. The Russians also brought their own food to McDonald’s and ate there.

Although for the Russians, capitalist food was not part of ‘Nash’ (which defined by Coldwell as a process that evokes a sense of nationalist qualities), they wanted to implement it into it because for them ‘Nash’ has a wider meaning. They use it to demarcate feelings of intimacy that are not exclusively national to divide between local and foreign by making more abstract categories of insider and outsider. Simply put it, Russians domesticated the MacDonald’s fast food and made it their own.

What can we learn from those actions regarding consumer insights and globalization?

First, an interesting insight about global and local. The image of a product in one continent, might not be perceived as such by the consumers in a different continent. For example, taste. For the Russian, preparing McDonald’s foods at home created the opportunity to add change and promote the foods they were eating.

Second, the image of what one culture is, might get a totally different interpretation in a different culture. For example, what American food is got a different interpretation.

Finally, your consumers might process your services and products into something familiar.

Although global companies try to try to understand consumer’s taste, they should take into consideration what their consumers would prefer to adopt into their local culture.

Although McDonald’s temporarily closed the business, it is still part of the Russian’s local diet.

Sources:

The New York Times - McDonald’s, Coca-Cola and Starbucks temporarily stop sales in Russia. [www.nytimes.com/2022/03/08/business/mcdonalds-russia.html]

Coldwell, Melissa. “Domesticating the French Fry: McDonald’s and Consumerism in Moscow”. In The Cultural Politics of Food and Eating. Caldwell and Caldwell Eds. 180-196. 2007. Blackwell Publishing.