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- BUSINESS, Page 51Moscow's Big Mak Attack
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- The golden arches rise over Pushkin Square
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- By ANN BLACKMAN/MOSCOW
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- Sixteen-year-old Nadya Vanova listens intently as a customer
- orders a Big Mak, kartofel-fries and an ice-cream koktel, or
- milkshake. After punching the order into one of 29 computerized
- cash registers, she nods and says, "Thank you. Please come
- again." But assistant manager Sergei Skvortsov, 25, shakes his
- head unhappily as he observes her trial run. "Nyet," he tells
- the nervous trainee. "Try again. You must look each customer
- in the eye and smile."
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- Young Nadya is one of 605 employees chosen from 27,000
- Soviet applicants who responded to a small help-wanted ad that
- McDonald's officials placed last November. After 14 years of
- negotiating a maze of Soviet bureaucrats, the first McDonald's
- in the Soviet Union is scheduled to open this week. Situated
- on Pushkin Square, just a few blocks from the Kremlin, the
- restaurant will introduce a new concept: fast food. To handle
- the anticipated Big Mak attack, the McDonald's has a seating
- capacity of 700, the largest in the 11,300-restaurant chain,
- and can serve as many as 15,000 customers a day.
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- McDonald's has built restaurants from Seattle to Singapore,
- but completing the first of 20 planned outlets in the Soviet
- Union was a triumph over the country's endless red tape and
- ancient infrastructure. A joint venture of the Canadian
- subsidiary of McDonald's and the Moscow city council, the $50
- million project fell through several times before it was
- finally signed in April 1988. Says George Cohon, president of
- McDonalds Restaurants of Canada: "When I had that first
- cheeseburger off the grill, I thought, `This place is really
- going to open!'"
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- The biggest problem has been dealing with the Soviet
- ministries, which still adhere to rigid regulations in doling
- out precious supplies. Explains Cohon: "When we need more sand
- or gravel for building and go to the department in charge, they
- say, `Sorry, you're not in my five-year plan.'"
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- The venture intends to buy virtually all its raw materials
- from Soviet producers, no small order in a country where many
- food products are rationed and the term quality control is not
- in the lexicon. The Moscow managers have imported potato and
- cucumber seeds from the Netherlands and have trained Soviet
- farmers to harvest and pack the produce without bruising it.
- They have taught Soviet cattle farmers that they can raise
- leaner beef by castrating their cattle a month later than usual
- and slaughtering them a month earlier. To maintain food
- standards and keep the supply flowing, the company has built a
- $40 million food-distribution plant just outside Moscow, with
- its own bakery, dairy and meat-processing units as well as a
- microbiology lab.
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- Starting salary at the Moscow McDonald's is 1.5 rubles an
- hour, average by Soviet standards and about $2.40 at the
- official exchange rate, but top managers can expect to earn
- more substantial wages. Alexander Omelchenko, 31, the
- dairy-line manager, says he earned 250 rubles a month working
- in a scientific institute before being hired by McDonald's. "I
- now make 450 rubles a month," he says proudly. "McDonald's is
- more demanding, but it offers me a chance to prove myself."
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- During the month before the grand opening, 30 Soviet
- restaurant managers who had trained for several months in
- Europe and Toronto instructed new employees in company
- standards of quality, politeness and service. "Smiling and
- looking people in the eye are not things they do naturally,"
- says a McDonald's executive. Using manuals translated into
- Russian and videotapes, the trainees have learned everything
- from how to wash windows and mop floors to the proper way to
- assemble a Big Mac. Customers have some learning to do too.
- Because Soviets are unaccustomed to eating finger food, many
- of those invited to a preview disassembled the Big Mak and ate
- it layer by layer. Despite the cultural hurdles, Cohon is
- enthusiastic about the huge potential market and optimistic
- about the adaptability of the people. Says he: "Soviet kids win
- a lot of medals in the Olympics. We can train them to work in
- McDonald's."
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- Unlike most Western companies doing business in the Soviet
- Union, McDonald's is catering not just to foreign tourists and
- businessmen but also to the Soviet public. The first
- Moscow-based restaurant will deal in rubles, a shrewd strategy
- that is expected to attract local customers, who have grown
- increasingly impatient at seeing quality products on sale for
- foreign currency only. But because rubles are not readily
- convertible to foreign currency, McDonald's will have to find
- ways to take home some of its Soviet profits. As a result,
- McDonald's will open another Moscow restaurant next year in
- which foreign customers can pay for their food in hard currency
- only.
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- With the Big Mak, kartofel-fries and a koktel priced at
- about 5.5 rubles, or twice the cost of a meal in a state-run
- cafeteria, McDonald's must pitch its fare to higher-income
- patrons. Even so, one thing about the new McDonald's may be
- familiar to the Soviets: long lines.
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