The fast food giant said its three outlets in the country would shut – and that it had no plans to return.
Besides the economy, McDonald’s blamed the “unique operational complexity” of doing business in an isolated nation with a population of just 300,000.
Iceland’s first McDonald’s restaurant opened in 1993.
Tom Friedman, who famously developed the bogus Golden Arches Theory of Conflict Prevention*, will now have to worry about the new increased possibility of war between Iceland and dyadic partners that still have their McDonald’s. I mean, how will the special sauce of globalization and economic development now work its magic in the North Atlantic without Mickey D’s? Of course, as Dan Drezner has pointed out, Mickey D’s didn’t stop war between Georgia and Russia in 2008 nor did it prevent Indian and Pakistan in 1999 from fighting the Kargil War. And I’m skeptical about these types of economic theories in the first place, McDonald’s Theory and its more sophisticated kin in IR Theory. But these cases and other critiques haven’t stopped Friedman from proposing a similar alternative” “Dell Theory.” I’m reading Patrick McDonald’s The Invisible Hand of Peace to see if Capitalist Peace Theory might do the trick where others in this family of theories have failed.
*As Walter Russell Mead has succinctly explained, “The ‘McDonald’s theory’ holds that no two countries with McDonald’s in them will ever go to war. Once you have a middle class big enough to support hamburger franchises, the theory runs, war is a thing of the past.”