Photo: flickr user: girlwparasol
Andrew E. Kramer in the New York Times has a great summary of Russia‘s newest boom market – fast food.Amongst the interesting tidbits, there’s the fact that American fast food outlets are able to charge more from their Russian patrons.
According to research, the average Russian spends $8.92 on a fast food meal, as opposed to the United States average of $6.50.
For example, a large “the works” pizza at Papa John’s in Kentucky costs $14, compared with $21.62 for the same pizza in Moscow.
The reasoning? Russians, despite earning a lot less than Americans ($7,276 per annum in Russia versus $43,539 in the United States), actually have a lot of spare cash:
They are unburdened by the hangover of consumer debt that has curbed American purchasing power. Nor do Russians have high medical bills because the health care system, if flawed, is largely socialized. The income tax is a flat 13 per cent. And a majority of Russians own property mortgage-free, as a legacy of the mass privatization of apartments in the 1990s.
Coupled with Russia’s decision to categorize McDonald’s as a supermarket (hence lower taxes), US fast food chains could see a huge payday from the Russian appetite.
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