Tuesday, 27 October 2009

Bye bye McDonald's

Iceland is about to close its 3 McDonald's restaurants (yeah, it only had 3 of them - all in the capital Reykjavik). It hasn't been the best year for Iceland considering the financial catastrophe following its over exposure to the crisis.

Iceland's McDonald's managing director, Magnus Ogmundsson, says it has become too expensive to operate in the country. All of the products are imported from Germany and becasue of the fall of the Krona (ISK) and the high import tariffs on imported goods, the Big Mac would have to cost 4.30€ in order to make profits - it would have been the most expensive Big Mac in the world (the current most expensive Big Mac is in Switzerland and in Norway for 3.90€).

Funny thing is that the first person to take a bite out of a Big Mac in Iceland in 1993 was the prime minister at the time, David Oddsson - same guy who was in charge of the country's central bank last year when Iceland was hit with the crisis provoking the collapse of the Krona. Ironic, huh?

Oh well, Icelanders will have to be healthier i guess.

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