The government of Iceland goes bankrupt and now this. Troubled times have hit Iceland indeed. In a sign of these struggling economic times, Iceland's three McDonald's restaurants in Reykjavik are closing.
The blame for falling profits are due to Iceland's economic struggles and the agreement with McDonald's. Iceland was required to import all goods for the restaurant from Germany. Costs had gone up as the krona was collpasing and import taxes were up. Profits needed to increase to come up with the struggling currency and rising costs. The Big Mac was already 650 krona ($5.29) but it wasn't enough. Increasing the price to where it needed to be - 780 krona ($6.36) - would have made it the most expensive Big Mac in the world.
While McDonald's first arrived in Iceland in 1993, it may be a long time before it returns, if it ever does. The key to budget travel is to prepare in advance. When it occurs to family trips, globetrotting, well-deserved holidays and/or going to see new places we have never been before, the reality of cost and budgeting is always in the back of our minds. Preparation and consuming our travel budget carefully is a priority for most families. Lowering spending and charges, while still savoring your vacation to its fullest, is the key to guaranteed achievements and fiscal liability. Your pocketbook and family will thank you! The thought regarding economizing money while vacationing is simple: Even if your personal funds is extremely limited, you can still take a break and enjoy life! Simply put, life is just too short to never step out of the door or leaving the homestead! Also remembering that while traveling, no matter whether on a funds or not, even the smallest of things can all add op to a huge vacation or travel expenses!. The stores will likely re-open under a different name with local ingredients. McDonald's becomes a casualty of Iceland's struggling economy. Ronald McDonald has to "grimace" a little as there will be a few less served each day.
finance.yahoo.com/news/Iceland-says-goodbye-to-the-apf-2609404079.html
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