The company’s turnover was also on a decline, to 399.9 million lei (EUR89.7 million), flat in lei, but 4.5% lower in euros.
Moreover, in euros the turnover returned to the 2007 level, but that year the company’s profit was ten times higher. McDonald’s representatives did not answer ZF’s request for information by deadline as to why the turnover had declined.
McDonald’s sales decline in Romania shows that the crisis still has enough force to hurt even businesses with a tradition, and which have a strong brand.
Another factor that could contribute to this decline is strong competition from other fast food chains, as well as from traditional restaurants.
In the spring of last year US chain Subway, one of McDonald’s main international competitors, entered the Romanian market. The chain, which is developed under a franchising system, has already opened 16 restaurants in Romania. The US company announced from the beginning of the year it was planning aggressive expansion, with the company aiming to become market leader by number of units opened.
On the other hand, during the crisis time McDonald’s slowed down its expansion significantly, opening only one restaurant per year. This policy has coincided with the consumption decline and with the appointment of Daniel Boaje (42) as general manager of the company in the spring of 2011.
Previously he had been general manager of the largest consumer loans company Cetelem for five years.
The latest McDonald’s opening last winter is a unit in Pipera-Tunari (northern Bucharest), an area with plenty of office buildings, many of which are empty.
McDonald’s Romania, one of the largest employers in the Romanian economy, had a little less than 2,650 employees at the end of last year, over 1,000 less than during the boom years, according to data from the Finance Ministry and the Trade Registry.
In 2008, the last booming year for the Romanian economy, McDonald’s had 3,800 employees.
(English version by Daniela Stoican)