ABSTRACT

The concept of fast-food has been almost entirely foreign in Russia with its tradition of long zastolie, or dining sessions, complete with tables laden with zakusky, or hors d'oeuvres, and drinks, accompanied by endless toasts and songs. Additionally, food shortages have been widespread within the country over much of its history, particularly during much of the communist period. How could fast-food establishments be accepted in a country where food has always been regarded, at all levels of society, as a symbol of affluence? Within this cultural setting, which seemed inimical to the success of the fast-food concept, McDonald's has become the most visible symbol of a foreign company's success in Russia, with its fifty-eight restaurants in a dozen cities, and plans for opening fifteen to twenty restaurants in the country annually ( Russian Business Monitor, 2000). Moreover, employing more than 5,000 people, the company has remained one of the more important employers for younger Russians for the past decade ( Boston Globe, 2000). On 31 January 2000, in fact, McDonald's celebrated the tenth anniversary of its first Moscow restaurant, which remains the largest and busiest McDonald's in the world (McDonald's Web site, 2000). Its staying power is even more striking in comparison with Kentucky Fried Chicken and Pizza Hut, which entered Russia later, exited for a short time after the country's financial crisis of mid-1998, and then re-entered (Barshay, 1993; Rubinfien, 1993). How have McDonald's policies and practices toward its labour force contributed to the company's commercial success? And to what extent have its human resource (HR) practices and policies been country-specific, or have they been driven primarily by corporate policies and culture?