McDonald’s is to close its business in Iceland because the country’s financial crisis has made it too expensive to operate its franchise.
The fast food giant said its three outlets in the country would shut – and that it had no plans to return.
Besides the economy, McDonald’s blamed the “unique operational complexity” of doing business in an isolated nation with a population of just 300,000.
Iceland’s first McDonald’s restaurant opened in 1993.
Here is more. Most of all, it is more expensive to import inputs (oddly, the story does not mention capital controls). The restaurants will be reconfigured and in their new identity they will source Icelandic products much more.
Here is a brief update on the economy of Iceland, including a discussion of Iceland’s significant fiscal consolidation. By the way, the country has seen two years running on negative growth in health spending.
Here is an article on how much immigrants are starting to contribute to the economy of Iceland. I bought a mineral water from a “Cafe Haiti” in Reykjavik and I believe it was not there the last time I visited, nineteen years ago.
I enjoyed the new Samsung ad for Iceland.