SKAGGS Blog

As the McDonald’s franchise closed up shop in Reykjavik last weekend, many perceived the company’s decision to pull out of Iceland as yet another setback for the country’s struggling economy. In truth, it was just the opposite.

By contract, the McDonald’s franchise holder in Iceland – Lyst, which, coincidentally, means “appetite” – was required to import all of its food from Germany. The result was that much of the 650 krona ($5.29) spent on a single Big Mac ended up going out of the country, while transportation costs caused unnecessary damage to the environment and high-preservative products caused unnecessary damage to people’s health.

Lyst’s new venture, Metro, will offer a similar menu using materials and produce sourced from within Iceland. By switching to local providers, the new model will help to create jobs, reduce pollution, and keep money circulating within the national economy. Moreover, because of Iceland’s laws restricting the use of preservatives, the food itself will be healthier. If Metro is a success, it will prove to similar businesses that there is money to be made in sustainability. Indeed, the McDonald’s departure could end up being exactly the kind of “setback” Iceland’s economy needed.