Case | HBS Case Collection | October 2002 (Revised January 2003)

McDonald's Russia: Managing a Crisis

by Youngme E. Moon and Kerry Herman

Abstract

In August 1998, George Cohon, founder and senior chairman of McDonald's Russia, is facing an economic state of emergency. Russia is in the midst of a severe currency crisis--the ruble has plummeted in value, creating massive inflation and widespread economic disarray. Traffic in the 26 restaurants has plummeted, and Cohon is struggling to figure out how to entice consumers back to McDonald's. Cohon is debating two issues: whether to raise prices and whether to add low-priced items, such as cabbage soup, to the menu.

Keywords: Currency; Crisis Management; Brands and Branding; Retail Industry; Food and Beverage Industry; Russia;

Citation:

Moon, Youngme E., and Kerry Herman. "McDonald's Russia: Managing a Crisis." Harvard Business School Case 503-020, October 2002. (Revised January 2003.)