McDonald's stops in Iceland
October 26, 2009 9:20 am

McDonald's fast food chain is quitting in Iceland according to a announcement from Lyst efh. The reason is that Lyst ehf., Has to buy resources abroad because of McDonald's special standards. Instead, Metro's snack bar Metro will take over McDonald's and will find Icelandic burgers with Icelandic ingredients.

You can read the full announcement from the company below:

Lyst ehf. will discontinue partnership with McDonald's fast food chain around the end of the month, with the company operating three McDonald's franchised restaurants. The operation of the sites will continue under the name Metro.

The Metro locations will continue to offer similar products and similar menus at comparable prices. Emphasis will be placed on Icelandic raw material, quality and speed of service as before. The change is in good agreement with McDonald's.

The reason for the change is a difficult economic environment in Iceland. There, the collapse of the króna largely determines. Lyst ehf. has in recent years purchased most of McDonald's raw materials, meat, cheese, vegetables and other sources from foreign suppliers, according to McDonald's requirements and standards. The currency collapse, combined with high tariffs on imported agricultural products, has doubled the company's raw material costs and made its performance difficult. The parties do not believe that the economic situation here will improve enough to make the running of restaurants under McDonald's brands profitable in the long term.

The reaction of Lystar ehf. these changes are to continue the operation of the restaurants in Suðurlandsbraut, Kringlan and Smáratorgur under the new name. National suppliers have been negotiated to provide the Metro stations with the best available ingredients and Metro meals will be in packaging manufactured in Iceland. By directing trade to domestic producers will succeed in significantly reducing raw material costs.

10-15 new jobs will be created for domestic manufacturers as a result of the change. Beef, chicken, dairy products, sauces, ice cream, bread, vegetables and packaging all from domestic producers.

As of Sunday, November 1, Metro's customers will be able to access a similar menu as at McDonald's. The children's boxes with fun toys will be in place. Strict quality control, service speed and low prices continue. It will be based on the experience that Lyst ehf. has a long and successful partnership with McDonald's. As early as the first few weeks, customers will also be aware of innovations, e.g. increased emphasis on salads and other health foods.



David Oddsson gets his first Big Mac burger at the opening of Mc Donald's in Iceland in 1993. PICTURE / GVA

"We thank McDonald's for good cooperation over the years and in preparing for this change," says Jón Garðar Ögmundsson, owner of Lystar ehf. "With the Icelandic brand in the fast-food market in the current circumstances, we have full faith in the future, as there has never been more to do with We intend to continue our efforts by moving our procurement to the domestic manufacturer and building on our long-standing experience of working with the world's fastest-growing fast food chain. This is how we will maintain our leadership in the market. "
Lyst ehf. The first McDonald's opened in Iceland on September 9, 1993. The restaurants are now three, on the Suðurlandsbraut, Kringlan and Smáratorg. Jón Garðar Ögmundsson has been Lystar's owner since 2004. The company's employees are 90 and no one will be terminated due to the changes. The business continues to have the same identification number despite the changed brand. Turnaround times will be the same as before.