No more Big Macs in Iceland
The news that McDonald's is pulling out of Iceland next week, is a big ol' sign that this credit crunch is not going to vanish in a hurry. Of course, Iceland had it pretty bad, effectively being left bankrupt.
Whilst the headline seems semi-shocking, the reality of it is that the fast-food behemoth only had three outlets out there anyway.
Jon Ogmundsson, managing director of Lyst, holder of the McDonald's franchise in Iceland, said the rising cost of importing ingredients and no sign of an end to the economic slump meant that the business was no longer financially viable.
A Big Mac in Reykjavik sells for 650 krona (£3.22). However, a 20% price hike would be required to make a healthy profit, which would make the Icelandic Big Mac the most expensive in the world at 780 krona (£3.86).
Seeing as Britain is looking like a place that won't be able to haul its sorry arse out of the slump for a while, the thought of McDonald's pulling away from these shores conjures up images not unlike the year everyone went nuts buying petrol. Drive-ins would be flooded with people stocking up on McNuggets and those really long plastic spoons and there would be riots over Happy Meal toys.
Mercifully, we're greedy swines and McDonald's know it.