Thomas Friedman's 1996 "Golden Arches Theory of Conflict Prevention", the theory that no two countries with McDonald's (NYSE: MCD) locations will go to war with each other, was introduced following the establishment of McDonald's locations in Russia in 1990, but it has been on its way out for years.
The theory hinged on the belief that countries taking part in the international capitalist system were too closely economically and socially intertwined to risk open conflict, but Russia has repeatedly proven that this isn't a realistic expectation. The theory first came into question in 2008 with the Russia-Georgia conflict and was officially proven wrong in 2014 with the Russian annexation of Crimea.
Now, the so-called McDonald's War theory is in the news again, this time because the fast-food franchise has closed its Russian McDonald's locations. Roughly 850 franchise locations closed on March 14, "Due to operational, technical and logistical difficulties".
"At this juncture, it's impossible to predict when we might be able to reopen our restaurants in Russia," McDonald's said in a statement.
While its stores will be closed, McDonald's says it will continue to pay its Russian employees, around 62,500 people. The company says it expects its Russian closures to cost $50 million each month.
Already, Russian residents and expatriates are mourning the loss of the chain that has long been seen as a symbol of freedom and hope in the country.
"That McDonald's is a sign of optimism that in the end didn't materialize," Vlad Vexler, a political philosopher and author present at the opening of the first Russian McDonald's, told reporters. "Now that Russia is entering the period of contraction, isolation and impoverishment, you look back at these openings and think about what might have been."
Similar to the establishment of the internet blockade between Russia and the rest of the world, the withdrawal of McDonald's from the country is likely to impact everyday residents far more than the government.
"It's wrong because it was the only affordable place for me where I could eat," student Lev Shalpo in Moscow told reporters.
After McDonald's first entered Russia in 1990, countless other chains followed suit, and the same is true of the fast-food giant's exit. After McDonald's announced its Russian closures, Pepsi (NYSE: PEP) and Coca-Cola (NYSE: KO) stopped their business in Russia, Starbucks (NASDAQ: SBUX) announced it would be closing its 130 locations, and the Yum Brands (NYSE: YUM) corporation closed 70 KFC locations and is attempting to close another 50 Pizza Hut stores in the country.