The country with no McDonalds

Share to Google Classroom

There are 38,000 McDonald’s restaurants worldwide, but Iceland is among the countries where there are zero locations. In 2009, McDonald’s closed its doors in Iceland.

While there is no official explanation for McDonald’s departure from Iceland, two competing theories have emerged over the years. The first theory suggests that Iceland’s economic turmoil during the Global Financial Crisis in 2008 played a role. The value of the Icelandic króna, the local currency, significantly declined, making it costly for McDonald’s franchisees to import beef, cheese, and vegetables while maintaining profitability.

At the time of closure, there were only three McDonald’s stores in Reykjavík, Iceland’s capital. These locations ceased operations and were later transformed into an Icelandic burger chain called Metro. Metro survived because it could source ingredients locally, taking advantage of government incentives that made necessary imports tariff-free.

Another theory focuses on the reception of American chains in Iceland. Some speculate that Icelandic people were not particularly impressed with Americanized food, leading to poor performance for fast-food chains like McDonald’s. Icelanders reportedly prefer to support local restaurants and consume locally sourced and home-grown produce, which may have contributed to the lack of interest in big international chains and franchises like McDonald’s and Starbucks.

1
The Treaty Principles Bill has been voted down in New...
1
New satellite data shows that the coastlines of New Zealand’s...
1
Starting in October, pet cats in Melbourne, Australia, must stay...
1
Monkeys may be better yodellers than humans, according to a...
1
Truett Hanes, an American man, has set a new Guinness...

World & National News

1
The New Zealand government has announced a new $12 billion...
1
Judges in a New York appeals court were shocked when...
1
Tens of thousands of eels have been found dead near...
1
International trade is when countries buy and sell goods to...
1
Time to change your clocks and check those smoke alarms!...