| You are in: Business | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Thursday, 5 December, 2002, 12:29 GMT Burger King cheers Big Mac retreat ![]() Bye bye Ronald McDonald As McDonald's long-running global expansion falters, with plans afoot to quit three countries, BBC News Online discovers how Bolivians are reacting to the loss of the fast food giant. All eight McDonald's restaurants in Bolivia have closed their doors for the last time. The Andean nation is the first country to lose its franchise since McDonald's announced last month plans to pull out of three countries in Latin America and the Middle East.
But rival burger chain Burger King is hoping it could benefit from the withdrawal. Rise and fall When McDonald's arrived in the exclusive South Zone of La Paz in October 1997, Bolivians stood patiently in a queue that ran seven blocks just to find out what the world's most famous hamburgers tasted like. On Saturday, the queues were not much longer than seven people, as the fast-food chain went out with more of a whimper than a bang. The lack of interest in the chance to eat one final Big Mac spoke volumes about why the firm's "golden arches" have failed to secure their foundations in Bolivia. 'Too expensive' "I ate there at first when it was the fashion," said Carlos Hidalgo as he sat chomping a hotdog bought from a street stall.
"But it was very expensive and the food was bland. This is much tastier than a McDonald's." In a country where average earnings are less than �50 per month, the number of people willing to spend more than �2 on a burger and chips was always going to be limited. "In other countries like England or the US McDonald's is a cheap option, but here you can buy a burger for two Bolivianos (�0.17; $0.27)," said Edson Ribero, chef at a local fast-food chain that sells pizzas and steak sandwiches for less than �1. "This is why McDonald's failed. It was not competitive in the market." Longstanding customers But those who did go for one last meal were sad to see Ronald and co leave town. "We went to the first restaurant when it opened in 1997 and we've been customers ever since," explained Ren� Chambi Vera as he left the Miraflores restaurant in La Paz with his family. "My children always loved McDonald's. I hope they come back one day." Blow for staff It is not only the customers who are left unhappy. There are also the 300 staff who lost their jobs, including franchise manager Robert Udler.
Only a fortnight earlier he had insisted that McDonald's future in Bolivia was secure. But he was forced to eat his words when the corporation informed him Bolivia was one of the countries in which returns from the business were "insignificant compared to the size of the investment." "I am so surprised at what is happening," he said, before refusing to make further comment. Bad sign for business? Local analysts and business people fear that losing such a recognisable trademark is a bad sign for Bolivia. "When McDonald's arrives it shows a kind of opening or modernising in a country," said La Paz economist Napoleon Pacheco. "Them leaving demonstrates the effect on consumers of a four year recession and 12% unemployment." Kurt Jurgensen, a Bolivian businessman who saw his Domino's Pizza franchise close earlier this year, was even more damning. "If the largest multi-national has failed, how is a smaller company going to risk investing here?" he asked. But for the other US fast-food franchise still operating in the country the loss of an opponent has created a golden opportunity. "We have to win those customers," said Samuel Doria Medina, head of the Burger King franchise. "If McDonald's leaving creates more demand we will have to open more restaurants." | See also: 13 Nov 02 | Business 08 Nov 02 | Business 07 Nov 02 | Business 22 Oct 02 | Business 25 Jul 02 | Americas 05 Jun 02 | Business 20 May 02 | UK 19 Apr 02 | Business Top Business stories now: Links to more Business stories are at the foot of the page. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Links to more Business stories |
![]() | ||
| ---------------------------------------------------------------------------------- To BBC Sport>> | To BBC Weather>> | To BBC World Service>> ---------------------------------------------------------------------------------- © MMIII | News Sources | Privacy |