Exit decisions: no more Big Mac for Iceland

Iceland’s McDonald’s Corp.
restaurants will be closed at the end of the month after the
collapse of the krona eroded profits at the fast-food chain,
McDonald’s franchise holder Lyst ehf said.

Here is the full story and how about that name "Lyst ehf"?  (It does check out.)  Is it silly for me to say I find this story just a wee bit scary?

I thank Jason Brennan and Daniel Lippman for the pointers.

Comments

Ouch! the wheels are coming off globalisation!

I was thinking the economic crisis made it a good time to go to Iceland. I guess I'll reconsider now. After all, if a place loses its McDonald's, is it even safe for Americans to go there anymore?

safe for Americans? why of course, I don't see any reason why it shouldn't be safe just because one franchise quits with 3 MCd's after having seen prices increase by 100% in a few months because he is forced to buy his ingredients from Germany.

Why McD force the Icelander franchise to buy from Germany?

Could this also have happened because the U.S. airbase closed down? Presumably American military personnel would have been a significant consumer of McDonalds in Iceland?

Sticky Big Mac prices?

There are only 3 in Iceland, right? So it is not that big of a deal.

Once they couldn't put cod in the Big Macs or make cabbage fries, it was all over.

Uh, of, if Thomas Friedman's McDonald's Theory of International Conflict is right, we'll soon be at war with Iceland.

No doubt within the next six months.

ehf is Icelandic for private limited company. Do you think Icelanders chuckle in the winter nights over names that end in Ltd or plc or whatever?

I, for one, will miss the McHakarl.

What is that annoying pop up?

Did everyone miss Starbucks having to pull out of Australia? And that was a couple of hundred stores.

The difference being that it seems to have been due to Australians being used to better quality coffee (high Italian and Greek immigration) rather than cost pressures.

I visited an old starbucks on the weekend. It had become a Spanish Chocolate House (Chocolateria San Churro). A vast improvement.

So. the USA can go to war with Iceland now?

Winner, with Andrew coming in second.

Re:Steve Sailer
"Uh, of, if Thomas Friedman's McDonald's Theory of International Conflict is right, we'll soon be at war with Iceland.
No doubt within the next six months."

First, that is not what his "theory" says (the implication is the other way round).
Second, his theory is wrong (e.g. Russia-Georgia war, both countries have McDonald's).

"unafjordable"

"Maybe not, but our companies aren't quite so ehf'd"

"Once they couldn't put cod in the Big Macs or make cabbage fries, it was all over."

This entry has definitely delivered.

I think this says a lot about the status of Iceland's economy, you know it's truly suffering if so called "fast food" which is known for being cheap among other things can't keep it's prices down enough to be able to compete. I wonder if this is going to be a singular incident or if this is the beginning of the end for businesses that rely on importing goods in Iceland.

Iceland is fortunate to have McDonalds exit their country. The food is not nutritious and the waste from the packaging only contributes to landfills already packed with styrofoam.

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