No More “Big Mac” in Iceland

Reykjavik, Iceland – Due to increase businesses competition and recent declines to the value of krona, Icelanders are now saying goodbye to the three McDonald’s store in their capital as it is about to close business starting next week.

“The worst economic condition has made it too expensive for us to sustain the operations of the three McDonald’s store we have at the capital Reykjavik,” Lyst Hr. Managing Director Magnus Ogmundsson said in an interview. The company is the sole franchisor of the world’s largest fast-food chain in Iceland.

According to Ogmundsson, they were bound by the fast-food giant to import all their products and equipment from Germany making it too expensive for them to operate the stores.“It is sad to know that the Big Mac, which has long been a symbol of globalization, has become one of the latest victims of the world financial crisis,” the director added.

Based on reports, the value of krona has dropped more than twice its value and the high import taxes on goods has made it impossible for Lyst to offer competitive pricing against those of locally sourced stores.

Before the decision to close down its stores, Lyst said that the Big Mac is now retailed at $5.29. But in order for them to make decent profit, they have to add another 20 percent to the retail price, pushing the cost of one Big Mac to $6.36.