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Metro (restaurant chain)

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Metro
FormerlyMcDonald's Iceland (1993–2009)
IndustryRestaurants
GenreFast food restaurant
PredecessorMcDonald's Iceland
(1993–2009)
Founded1993; 31 years ago (1993) in Reykjavík, Iceland (as McDonald's)
1 November 2009; 15 years ago (2009-11-01) in Reykjavík, Iceland (as Metro)
FounderMagnus Ogmundsson
Defunct31 October 2009; 15 years ago (2009-10-31) (as McDonald's)
Headquarters
Reykjavík
,
Iceland
Number of locations
2 restaurants (2019)
Area served
Iceland
Products
Number of employees
90 (2009)
Parent
  • McDonald's (1993–2008)
  • Lyst Hr.
    (2009–2010)
  • Lífs og heilsu ehf.
    (2010–2013)
  • M-Veitingar ehf.
    (2013–present)
Websitemetro.is

Metro is an Icelandic fast food restaurant chain. It replaced McDonald's after it left Iceland on 30 October 2009, as a result of the 2008–2011 Icelandic financial crisis and high import tariff on imported ingredients. The franchise holder, Lyst Hr., refused to increase the prices of their products, to stay competitive with local restaurants who used ingredients sourced locally. The franchise owner decided to close down all McDonald's operations and replaced them with their own franchise, Metro.

In contrast with McDonald's, Metro uses cheaper, locally supplied ingredients, which can allow their products to sell for lower prices. Some original McDonald's menu items are on the Metro menu along with domestic products, with menu items previously used in McDonald's now translated to the Icelandic language.

History

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McDonald's Iceland (1993-2009)

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Former McDonald's branch in Reykjavík — it has been converted to Metro

McDonald's opened its first Icelandic restaurant in Reykjavík in 1993 in response to the rising wealth of Icelandic residents. The then prime minister of Iceland, Davíð Oddsson became the first Icelandic customer to order the Big Mac.[1] Prior to 2004, McDonald's relied on locally supplied meat from Iceland. However, following the shortages of local meats, McDonald's relied on imported meats, especially from Germany, which continued until the closure of McDonald's Iceland.[2]

However, in 2008, Iceland suffered a financial crisis which caused the Icelandic krona to weaken. It then coupled with the high import tariff imposed on the imported goods causing the cost of imports for the key ingredients to increase,[3] a kilogram of onion from Germany costing the equivalent to a bottle of whisky.[4] This made the Big Mac price in Iceland rise 20 percent, from 650 krona (US$5.29) to 780 krona (US$6.36) thus becoming the most expensive Big Mac ever sold in 2009, surpassing the price of Big Mac sold in Switzerland and Norway (US$5.75).[1] Due to this situation, the managing director of Lyst Hr., who managed the franchising of McDonald's in Iceland, Magnus Ogmundsson, decided that it was not worth raising the price of their products in order to stay competitive with other restaurants which used the locally sourced ingredients. Hence it was decided to close all the stores in Iceland in October 2009, with no plans to revive McDonald's Iceland in the future.[1] When the closure was announced on 26 October 2009, many concerned customers rushed to get the last-minute opportunity to have a meal at McDonald's. This caused the sales of McDonald's to spike, where more than 10,000 burgers were sold in a day, and shortages of staff to handle the large number of customers. The Big Mac was sold out on 29 October 2009.[5] The last McDonald's branch was closed on 30 October 2009.[6] By the time of the closure, one burger cost 230 krona (US$1.87).[5] The last order for McDonald's burger and french fries was sold to an individual who offered to donate these foods to National Museum of Iceland. The gifts were rejected by the museum curator[7] and were later transferred to one of the hostels in South Iceland for exhibition.[8]

Metro (2009–present)

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After the closure, Lyst Hr., reopened all former McDonald's branches in Iceland under the new brand, Metro, on 1 November 2009.[9] The new operation used locally sourced ingredients which were much cheaper than imported ingredients,[4] and retained 90 employees who previously worked in McDonald's prior to closure,[3] while creating additional 15 job openings available to Icelanders.[10] Its menu retains some of the original McDonald's menu items in addition to domestic products.[9] However, the original McDonald's menu items used in Metro are translated to Icelandic language.[11]

In June 2010, Lyst Hr. sold Metro to another company,[12] Lífs og heilsu ehf., before Lyst Hr. declared bankruptcy. While the sale of the subsidiary excluded the debts from previous parent company, the new parent company, Lífs og heilsu ehf., hoped that since the acquisition of Metro, the company will help settle Lyst Hr.'s debt in full.[13] However, the rising debts of the new parent company, Lífs og heilsu ehf., caused the parent company itself to declare bankruptcy, Lífs og heilsu ehf. sold Metro to M-Veitingar ehf. in January 2013.[14]

In May 2015, due to strikes at Icelandic Veterinary Association, many Icelandic restaurants were affected by meat shortages which included Metro and KFC. As a result, Metro temporarily replaced beef with pork in their hamburger.[15]

In 2019, one of the Metro restaurants in Reykjavík closed, leaving only 2 restaurants remaining.

Products

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Randís, an ice cream offered from Metro

Metro predominantly sells hamburgers, French fries, grilled chicken, chicken nuggets, salads and wraps. The chain also has sides like mozzarella sticks, soft drinks, milkshakes, and fruit.[11][16][17]

Metro's flagship product, Heimsborgari, is a hamburger that is equivalent to the McDonald's Big Mac.[18]

Since 2011, the menu has been revamped to meet the needs of health-conscious customers, as well as the regular customers. The revamped menu includes a new salad range such as Caesar salad and haystack, and the introduction of naan as a choice for wraps. In addition, Metro shows customers the calories of all food items offered.[19]

Despite the company's commitment to use locally supplied ingredients and materials such as vegetables and meats, some ingredients such as breads, cheese and naan are imported from overseas instead.[19]

Restaurant

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As of 2019, the company operates two branches in Iceland, one in Skeifan and another one in Smáratorg. Similar to McDonald's, it offers drive-through service, indoor seating and playground.[20]

Reception

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On the first day of the opening of the Metro restaurant, the reception was quite positive, where many customers had been queuing up during the opening and also unusually high numbers of drivers queued at the drive thru section placing orders.[21] In addition, due to the company's ability to decide the pricing for the products, as well as offering healthier food choices to health-conscious customers, Metro's business has been slightly improved.[22]

See also

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References

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  1. ^ a b c "Iceland Says Bye to the Big Mac". CBS News. Associated Press. 26 October 2009. Archived from the original on 17 February 2020. Retrieved 17 February 2020.
  2. ^ Ævar Gunnarsson, Oddur (30 October 2019). "Tíu ár síðan McDonalds yfirgaf klakann fyrir fullt og allt"[permanent dead link‍] [Ten years ago, McDonald's left the hatch forever]. Fréttablaðið (in Icelandic). Retrieved 19 February 2020.
  3. ^ a b "Iceland's three McDonald's restaurants close". The Telegraph. 27 October 2009. Archived from the original on 17 February 2020. Retrieved 17 February 2020.
  4. ^ a b "McDonald's pulls out of Iceland". BBC. 27 October 2009. Archived from the original on 17 February 2020. Retrieved 17 February 2020.
  5. ^ a b Brynjólfsson, Ari (31 October 2019). "Fengum fágaða borgara við brotthvarf McDonald's" [We got sophisticated burgers at McDonald's closure]. visir.is (in Icelandic). Archived from the original on 17 February 2020. Retrieved 17 February 2020.
  6. ^ Fred, Par (3 February 2020). "Les fast-foods en Islande!" [Fast food in Iceland!] (in French). Comptoir des Voyages. Archived from the original on 17 February 2020. Retrieved 17 February 2020.
  7. ^ Chau, Eddie (5 November 2019). "INDESTRUCTIBLE: Decade-old McDonald's burger, fries still intact". Toronto Sun. Archived from the original on 18 February 2020. Retrieved 18 February 2020.
  8. ^ Ćirić, Jelena (2 November 2019). "Iceland's Last McDonald's Order Just Turned Ten". Iceland Review. Archived from the original on 31 December 2019. Retrieved 17 February 2020.
  9. ^ a b "McDonald's hættir - Metro tekur við" Archived 5 August 2019 at the Wayback Machine [McDonald's stops - Metro takes over]. Morgunblaðið (in Icelandic). 26 October 2009. Retrieved 17 February 2020.
  10. ^ Sophia Fontaine, Andie (27 October 2009). "McDonald's Closes Its Doors in Iceland". The Reykjavik Grapevine. Archived from the original on 17 February 2020. Retrieved 17 February 2020.
  11. ^ a b Peltonen, Sari (22 December 2009). "The Post-Mac Burger". The Reykjavik Grapevine. Archived from the original on 5 July 2022. Retrieved 17 February 2020.
  12. ^ Loftsdóttir, Kristín (19 December 2018). Crisis and Coloniality at Europe's Margins: Creating Exotic Iceland. Routledge. ISBN 9781351018241.
  13. ^ Gunnarsson, Þórður (10 July 2010). "Skyndibitastaðurinn Metró seldur" Archived 19 February 2020 at the Wayback Machine [The fast food restaurant Metro is sold]. Morgunblaðið (in Icelandic). Retrieved 19 February 2020.
  14. ^ Ásgrímsson, Þorsteinn (30 January 2013). "Ítrekuð gjaldþrot Metroborgara" Archived 19 February 2020 at the Wayback Machine [Repeated bankruptcy of Metro restaurant chain]. Morgunblaðið (in Icelandic). Retrieved 19 February 2020.
  15. ^ Olgeirsson, Birgir (12 May 2015). "Metro notar svínakjöt í ostborgarann og heimsborgarann vegna verkfalls" Archived 20 January 2021 at the Wayback Machine [Metro uses pork in the cheeseburger and Heimsborgari because of a strike]. Vísir.is (in Icelandic). Retrieved 19 February 2020.
  16. ^ Ösp, Auður (24 November 2019). "Hérna færðu hádegismat á 1.000 krónur eða minna" [Here you get lunch for 1,000 krona or less]. Dagblaðið Vísir (in Icelandic). Archived from the original on 5 July 2022. Retrieved 17 February 2020.
  17. ^ "Metro - Suðurlandsbraut" (in Icelandic). Archived from the original on 5 June 2022. Retrieved 17 February 2020.
  18. ^ Jane Cohen, Hannah (31 July 2017). "Show Me The Money: 5000 ISK". The Reykjavik Grapevine. Archived from the original on 5 July 2022. Retrieved 18 February 2020.
  19. ^ a b "Betr'á Metro" [Take the Metro] (PDF). Visir.is (in Icelandic). 13 July 2011. Archived (PDF) from the original on 17 November 2021. Retrieved 19 February 2020.
  20. ^ "Nýtt barnaland slær í gegn á Metro" [New Children's Land strikes through Metro]. Visir.is (in Icelandic). 6 May 2019. Archived from the original on 8 May 2019. Retrieved 19 February 2020.
  21. ^ New Europe Brussels team (8 November 2009). "McDonald's successor in Iceland off to a good start". New Europe. Archived from the original on 10 September 2022. Retrieved 17 February 2020.
  22. ^ Naudziunas, Jessica (1 August 2013). "Where In The World Are There No McDonald's?". NPR. Archived from the original on 17 February 2020. Retrieved 17 February 2020.
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