23 July 2020

McDonald’s and X5 set up the first fast food restaurant in a Perekrestok supermarket

Moscow, 23 July 2020 – X5 Retail Group (“X5” or the “Company”), a leading Russian food retailer (LSE and MOEX ticker: “FIVE”), and McDonald’s announce the launch of a pilot project to open fast food outlets in the Company’s stores. The first in-store McDonald’s is located directly in the shopping area of a Perekrestok supermarket at 5 Leningradskoe Highway in the Liga Khimki shopping mall.

The new facility combines a Delivery Kitchen for food deliveries with a McExpress window for takeaway and eat-in customers who want to use the shared dining area in the supermarket.

The companies will assess potential synergies that could boost traffic, foster loyalty to both brands and facilitate exploring new consumer habits for further cooperation. The pilot project envisages launching several fast food facilities in Perekrestok supermarkets in the Moscow metropolitan area and in St Petersburg. Based on the results of this test facility, a decision will be made on the further development strategy for the format. The new format may also be adapted to and rolled out at other X5 retail banners.

“We are happy to have X5 as our new partner, as we strive to provide our customers with outstanding service together with other market leaders in Russian. As a leader in food services, we are joining forces with Russia’s largest food retailer to form a partnership that opens up new opportunities for us to expand our footprint and share traffic,” said Karina Pogosova, Senior Vice President of Development, IT and Franchising at McDonald’s Russia.

“The food retail and the fast food industries are gradually merging into one. Depending on the situation, a customer may opt to buy groceries or ready-made food at the store, or order goods via express delivery. This trend led us to explore cooperation with McDonald’s in order to test various partnerships and create new business models that will best meet customer needs in a unified food market,” said Vladimir Salakhutdinov, Director of Strategy at X5 Retail Group.

The new 24/7 McDonald’s restaurant is equipped with a standard kitchen featuring a Made for You system to prepare food only after it has been ordered for delivery, takeaway, or eat-in. In addition, visitors can enjoy drinks and desserts at McCafé. The restaurant employs over 40 people. The new McDonald’s outlet boasts the highest standards of safety and quality: all employees wear masks and gloves and have their temperature checked every four hours, all surfaces are regularly disinfected, while the kitchen itself is equipped with 24-hour UV disinfection lighting.