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Thursday, Oct 02, 2025

Why the Big Mac could offer hope as big brands exit Lebanon

Why the Big Mac could offer hope as big brands exit Lebanon

Fast food giant McDonald's vows to stay in Lebanon as a plethora of big international brands exit amid growing economic crisis

The unprecedented economic crisis in Lebanon has seen the local currency lose more than 80 percent of its value against the US dollar in recent months amid soaring prices with inflation rate exceeding 120 percent by the end of August.

Combined with the spread of the coronavirus pandemic and the Beirut Port explosion on August 4, which affected more than 25,000 businesses, and the dire situation is clear.

Major international retail franchises have not escaped the turmoil. Beirut, once a regional destination in shopping, elegance and luxury living, is seeing an exodus of top brands.

Some retailers announcing a desire to exit the Lebanese market are liquidating their stock by selling at the old exchange rate, but those planning to stay can't afford to sell at low prices.

Sportswear giant Adidas will close its branches in Lebanon by the end of the year, joining a number of popular brands that are starting to pull out of the Lebanese market due to the volatile economic situation caused by the currency collapse.

It has become a daily routine to see people queuing in front of Adidas outlets to buy at the old exchange rate (pictured below).

The crisis has prompted others, such as Mike Sport, a sports equipment retailer in Lebanon, to shut down while the international soft drink giant Coca-Cola ceased operations in Lebanon at the end of May.

Its local distributor, National Beverage Company (Aujan), could not have been clearer when it explained in a statement that its exit was due to "the impossible financial situation in the country, which has no foreseeable solution".

Many other international brands have also ceased operations in Lebanon recently, such as Massimo Dutti, Just Cavalli, Karen Millen, Isabel Marant, Jacadi and Haagen Dazs.

But amid this financial meltdown, fast food franchises have so far survived, despite rumours about the potential closure of some chains.

"We're here to stay," stressed Lina Sadek, McDonald's Lebanon marketing manager, "Our contribution to our community and McFamily during those hard times is an example of the spirit we currently hold at McDonald's Lebanon."

Speaking to Arabian Business, Sadek ruled out closing any branch in Lebanon, saying: "So far, we’re not planning to close any of our branches. We are committed to our people and we hope that we will emerge stronger from this crisis. More than ever before, we need solidarity and hope.”



She added: "All business activities were affected during these turbulent times. We've passed the Covid-19 pandemic, the economic crisis and, more recently, the Beirut Port explosion. We're together in these difficult times. We're confident that Lebanon will overcome this. And we hope many businesses will survive and prosper again in the future."

Revealing how McDonald's is dealing with the strict measures on transferring money abroad to import raw material, Sadek said: "We are in the final stages of partnering with local suppliers for many of our ingredients after a fairly long period of testing and approvals, to adhere to Global McDonald's Golden standards.

"We still import many core ingredients into our menu from abroad, always making sure to get McDonald's global standards from our international suppliers. We use US dollars for all our payments so we have to transfer fresh dollars because of the capital control restrictions."


Lina Sadek, McDonald's Lebanon marketing manager


In January, the Big Mac cost LBP6,500 in Lebanon ($4.30). Macdonald’s then adjusted the price to match the new exchange rate at LBP8,000 per dollar and raised the price of the Big Mac by 38 percent to LBP9,000 ($1.10) after the depreciation of the local currency.

"We're trying to make sure the exchange rate swings don't reflect our price changes directly. In this regard, the partnership with local suppliers for many of our ingredients... will definitely impact our pricing strategies in the near future, and help local suppliers meet McDonald's Golden standards. We're focusing on adapting our operations to maximise the positive impact we can have on our clienteles, for relatively affordable prices," Sadek said.

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