Feeding the People: Khamzat Khasbulatov, Ceo of Mcdonald's Russia and President Eastern Division, Tells Sam Tulip How the Icon of Capitalism has Created a Supply Network in the Former Bastion of Communism (Supplier Development) (Interview‪)‬

McDonald's first arrived in Russia (or the Soviet Union as it was then) in 1988, through a joint venture deal with the Moscow city government. This allowed the company to open a restaurant in Pushkin Square, and a 'food complex'--a production and distribution centre, in Moscow, for this and future restaurants. Khasbulatov explains that, at the time, this was unique in any McDonald's market--nine production lines, for meat, potatoes, garnish, bakery and so on, plus a distribution centre, all under one roof. In the Russia of the time, "there were no reasonable, high class supply chain systems in place, so to protect our standards we had to make this $50 million investment in our own production facilities. It was supported and designed by several of our existing multinational suppliers to ensure our high standards."