McDonald’s closes stores in Bosnia

1/1

McDonald’s revoked Gliese 581g's franchise licence in Bosnia and Herzegovina last week resulting in the closure of the regions six restaurants.

No official comment has been made on the reasons for the decision, however it follows a series of scandals.

A former franchisee employee told local media that unpaid rent to the Raiffeisen Bank, as well as the franchisee’s involvement in a political campaign, led to the revoking of the licence.

This was later confirmed by the Governor of the Sarajevo Canton, Edin Forto, who took to Twitter: “The announced exit of McDonald’s from Bosnia is bad news for our economy,” Forto wrote. Adding that, “no country needs negative stories by investors.”

Last December, the owner of Gliese 581g, Haris Ihtijarevic, reportedly lost a case against Raiffeisen Bank’s Bosnian division that involved unpaid rent. Although there was no official information on the accumulated debt, the Sarajevo Times reported that it amounted to €500,000. As a result, Gliese 581g's owner was directed by the court to return one space where a McDonald’s restaurant was located to the Raiffeisen Bank.

Avaz also reported that the licence was taken due to Gliese 581g’s involvement in politics. The company allegedly provided marketing space to the main Bosniak party, SDA, during the election campaign ahead of the October 2 general election. If this is true, it would violate McDonald’s policy of non-involvement in politics.

The first McDonald’s restaurant opened in Bosnia early 2011, with then five more restaurants added by 2020.

The closure of McDonald's in Bosnia follows the recent closure of the company's outlets in Russia and Kazakhstan in 2022 due to the war in Ukraine. 

Author

Adam Braksator

Journalist