(This has been reported here before. What's new is the clear rationale behind the decision: McDonalds prohibited local produce)
I was listening to Gardar Ögmundsson, the owner of the McDonalds franchise in Iceland (BBC World Service). I felt my anger rising as he went on about importing his ingredients, the collapse of the Icelandic Kroner ( 85 to 185 Kroner to the Euro) and "unacceptable" costs - he would have to jack up the price of burgers by 30%
OK, I thought, so there's less profit in your oh so socially nutritious enterprise, throw all those people out of work.
I was wrong. Mr Ögmundsson went on to explain that McDonalds prevented him from buying locally: Bread, cheese, even lettuce. Only McDonalds certified producers would do and these were in Europe. So, he is ditching the franchise and reinventing his business. "Metro" restaurants will open, replacing the McDonalds, using local ingredients. Although the fare will be similar, Ögmundsson has reached an agreement with McD that his menus do not infringe their intellectual property.
There will be new jobs for producers and Ögmundsson is unlikely to go back to McDonalds even if the Kroner recovers.
I should have Googled. I've corrected Ögmundsson's, name. He might not have appreciated Gaydar. Here's an article:
McDonald's Closes Shop in Iceland
Lyst, the operator of US fast food chain McDonald's in Iceland, announced yesterday that the restaurant’s doors will close at the end of this month. The reason is the rising cost of imported supplies following the collapse of the Icelandic króna.
The low exchange rate in addition to high tariffs have doubled the company’s expenses for meat, cheese, vegetables and other products and challenged its profitability. The ingredients for hamburgers must be imported according to McDonald's' regulations, visir.is reports.
Lyst has therefore decided to open a new fast food chain, Metro, in the three locations in Reykjavík where McDonald's currently operate. Metro will have Icelandic hamburgers with Icelandic ingredients on the menu, which will create up to 15 new jobs among Icelandic producers.
These changes are undertaken in agreement with McDonald's, a statement from Lyst reads.
http://www.icelandreview.com/icelandreview/daily_news/?cat_id=16539&ew_0_a_id=351036