Oct 27, 2009

Iceland says goodbye to McDonald’s restaurants

McDonald's will close its restaurants in Iceland this week after currency fluctuations threatened to make Icelandic Big Macs the world's most expensive at $6.36.

Norway and Switzerland currently have the world’s most expensive Big Macs, at $5.75.

Iceland has three McDonald's restaurants - all in the capital Reykjavik. They will close next weekend, as the franchise owner gives in to falling profits caused by the collapse in the Icelandic krona.

Iceland's economy collapsed last year as the global financial crisis gathered pace leaving Icelanders grappling with soaring prices and a national currency – the kronur – that dived 80 percent as the nation’s banks collapsed.

McDonald's imports the majority of its ingredients meaning the fast-food giant can no longer compete with domestic restaurants who use local produce.