McDonald''s breaks even in Romania

The general manager of McDonald”s Romania last year turned the fast-food outlet chain to profit for the first time since it entered the Romanian market.

“Last year, we registered net income worth around 2 million dollars,” said the general manager of McDonald”s Romania, who holds the same position in Bulgaria and Moldova and also coordinates the chain”s operations in Serbia, Montenegro, Croatia, Slovenia, Macedonia, Georgia and Azerbaijan.

McDonald”s entered the Romanian market ten years ago and until last year all financial years ended with net losses. “The prices of McDonald”s products in Romania are several times lower than in West-European states. This is a pricing policy the company has adopted, of keeping prices at a low level,” Alecu added.

He mentioned that, in line with the company”s pricing policy regarding the Romanian market, the annual growth rate for prices should be half the rate of inflation. “Last year we raised prices by 4%, and I believe we will operate an increase of around 3% this year,” said Alecu.

Turnover derived by MacDonald”s Romania last year amounted to around 60 million euros (over $70m), 20% higher year-on-year, given that the company has not opened any new outlets.

“Turnover growth was generated by the favourable economic environment, the introduction of the single rate of taxation, which has buoyed up consumption. McDonald”s has integrated well in Romania and Romanian consumers have embraced the brand as a way of life,” the McDonald”s manager explained. He also specified that last year”s euro slide also increased the company”s turnover.

Since it entered the Romanian market, the company”s turnover has increased every year. “The 1996-2000 period was quite difficult and the business faced many obstacles. After 2000, things have got better,” states Alecu. The firm”s objective for this year is to increase turnover by at least 15%. georgiana.stavarache@zf.ro