Micah's Read of the Week, Vol. 86
We're a day late! McDonald's in Russia, Crypto Corner, Jerk of the Week, Recipe Corner, and more.
Hello, and welcome to Micah’s Read of the Week. One day late.
This is a newsletter filled with things Micah Wiener finds interesting.
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A note from Micah
Ooops. It took 86 weeks, but I finally published a day late. My apologies.
Let’s hope it doesn’t happen again for another 86 weeks. Thanks,
M
McDonald’s didn’t just close 850 restaurants in Russia. It froze a whole 30-year investment.
Ok, so obviously the world is watching the shameful and deadly Russian aggression in Ukraine. It’s extremely sad and unthinkable in 2022.
This story is not about that. It is about the 30-year history of McDonald’s in Russia. It is a fascinating story.
Nearly two weeks after Russian troops invaded Ukraine, and after activists and investors pressed the company, McDonald’s announced Tuesday that it would temporarily close 850 restaurants in Russia. In the announcement, Chris Kempczinski, chief executive of McDonald’s, said, “Our values mean we cannot ignore the needless human suffering unfolding in Ukraine.” He also acknowledged the tight relationship that the chain has developed with Russians in the 32 years since the Golden Arches opened its first restaurant in 1990, when the country was still under Soviet control.
But McDonald’s was also in a unique position to cut its ties, however temporarily. Unlike many fast-food chains whose international units are operated by franchisees, McDonald’s owns 84 percent of its restaurants in Russia. According to a corporate filing, McDonald’s restaurants in Ukraine and Russian accounted for 9 percent of the company’s 2021 revenue, because the chain owns so many of the outlets.
But in making its decision, McDonald’s also had to do something more than forgo profits: It had to sever ties with communities that it has served for decades — and with supply chains that it had created, virtually out of thin air. In a matter of days, an unprovoked war wiped out, for an unknown period of time, what it took McDonald’s more than 30 years to build.
The Russian McDonald’s origin story is surreal.
When the first McDonald’s opened in 1990 on Moscow’s Pushkin Square, a short walk from the Kremlin, the debut was seen for what it was: The free-market system poking its camel’s nose under the Iron Curtain.
Because of politics and endless red tape (one person later claimed that opening a single McDonald’s in Russia required 200 signatures from local officials), it took George Cohon, president of McDonald’s Restaurants of Canada, 14 years to launch the first fast-food joint in the former Soviet Union. He made sure to do it right. He built the largest McDonald’s at that time — a 23,680-square-foot restaurant, with 27 registers and seating for 700 customers on multiple levels.
Tens of thousands of people showed up on opening day, including politicians and celebrities, even though a meal (burger, fries and drink) cost about 5.5 rubles back then. “The equivalent of half a day’s wages for the average worker,” the Moscow Times noted in a 30-year retrospective on the first McDonald’s. Russians waited in long lines — a routine quite familiar to them — to get their first taste of a “Big Mak.” The store sold “34,000 burgers on its first day — smashing the burger chain’s previous first-day record of 9,100,” the Moscow Times reported.
But McDonald’s did more than open restaurants in Russia. The company built an infrastructure to provide products and ingredients to the chain’s growing number of storefronts. The move was both practical and necessary if McDonald’s wanted to maintain its standards: For starters, the ruble was difficult to convert into foreign currency, so it made sense for McDonald’s to invest its earned money inside the country. But Russia was also famous for shortages. So the company decided to build a plant outside Moscow to process beef, produce sauces and test for quality control.
McDonald’s brought in agronomists to help Russian farmers grow nonnative potatoes. The company introduced bakers from Canada, the United States and Europe to develop baking systems for the chain. Executives flew in meat experts to help Russian ranchers raise their cattle. By 1999, between 75 and 80 percent of the company’s raw materials “were being sourced from more than 100 local producers in Russia,” according to a 2010 report by the IBS Center for Management Research.
As trivial as it seems, McDonald’s changed Russian culture. The chain also helped push Russian culture into the convenience era.
It introduced not only McDonald’s iconic foods to the country but also breakfast menus and even the drive-through. “Initially, people bought the food from the drive-thru windows, then parked their cars around the store and went inside the restaurants to eat whatever they bought,” according to the 2010 IBS report.
Crypto Corner
I don’t know much about crypto, and truthfully, I’d rather not learn. But, crypto is everywhere, especially in Austin this week. Here are a couple of interesting pieces from the past few da
You Won’t Escape SXSW 2022 Without Knowing About Crypto
A guide and avoid getting talked at by a crypto bro, at SXSW or anywhere else.
If you plan to ignore the crypto bros and just focus on music and free drinks, I have bad news for you.
“I’m going to kick back, maybe wait in line to see Dolly Parton play at ACL Live.” Sorry! Dolly Parton is only in town because a studio called Blockchain Creative Labs is sponsoring the performance to promote “Dollyverse,” which is a “an audience centric Web3 experience” at which one can purchase “official and certified Dolly NFT collectibles.” Dolly Parton is hardly the only entity at SXSW that, this year, is inexorably tied to blockchain stuff—but the fact that even an iconic, 76-year-old country singer from East Tennessee is part of the blockchain business means that us mere attendees should have some background information about what all of this is before the crypto hordes descend upon Austin.
So why is crypto so present at SXSW?
SXSW is a natural place for these conversations because it’s right in the middle of a bunch of sweet spots. Both crypto and SXSW occupy a Venn diagram that overlaps on advertising, art, business, innovation, money, and technology. Because of that, this isn’t the first time cryptocurrency has played a role in SXSW—the festival made headlines in 2014 when it played host to one of the first Bitcoin ATMs. At the time, a single Bitcoin was worth around $630; today, it’s around $40,000, though that number fluctuates by a disconcerting and hilariously large percentage. The fact that the price has gone up so much is a big part of why crypto has an even bigger presence at SXSW this year—cryptocurrencies have a market cap of well over a trillion dollars, which means that the businesses invested in this stuff (a) have a lot of money to spend and (b) are investing heavily in trying to grow even bigger.
Biden orders sweeping cryptocurrency review, setting stage for regulation
The long-awaited executive order aims to ensure that the U.S. fosters the surging industry while mitigating its potential threats.
President Biden signed an executive order Wednesday for a sweeping review of the government’s approach to cryptocurrencies, aiming to secure the nation’s position as a leader in the rapidly growing industry while containing risks to consumers and the financial system itself.
Ultimately, some structure could be imposed on what has been a fractured regulatory response to the rise of digital assets in a global market now valued at roughly $1.85 trillion.
“Fundamentally, an American approach to digital assets is one that encourages innovation but mitigates the risks to consumers, investors, and businesses, broader financial stability, and the environment,” National Economic Council Director Brian Deese and national security adviser Jake Sullivan said in a statement.
They said the work that Biden is ordering will “reinforce U.S. leadership in the global financial system and safeguard the long-term efficacy of critical national security tools like sanctions and anti-money laundering frameworks.”
This sudden movement isn’t a reaction to any SXSW panels, rather it’s more likely a reaction to international events.
The Russian invasion of Ukraine has sharpened Washington’s focus on both the promise and peril of digital currency. The Ukrainian government and affiliated causes have collected tens of millions of dollars in cryptocurrency donations since the conflict began. Meanwhile, some U.S. policymakers have raised concerns about the potential for Russians to use cryptocurrencies to dodge sanctions, although others say the relatively small size of the asset market and the traceability of digital tokens make it an unworkable option for the Russians targeted with sanctions.
What does this mean for the coin that you own? FWIW, industry leaders are greeting the White House order as a win for the sector.
“Today, as democracies confront the greatest threat to global order in this century, we had a breakthrough,” Tomicah Tillemann, a former State Department official who recently joined an as-yet-unnamed venture capital firm investing in blockchain-based companies, wrote in a Medium post. “The Executive Order will inaugurate a serious, sustained discussion about how to build the policy architecture of a better internet. This is a debate Americans deserve.”
Jerk of the Week
Congrats to Urban Meyer for winning this prestigious award.
Apparently, Urb isn’t very good at first impressions. From ‘The most toxic environment I’ve ever been a part of’: Inside Urban Meyer’s disastrous year with Jaguars:
Urban Meyer burst into a room full of players at the Jaguars’ facility. He was furious. One of his players had missed an assignment during a preseason game, leading to a busted play. Meyer was enraged when it happened.
A day later, he was still fuming. If the mistake ever happened again, Meyer warned, he would cut every single one of them. “And do you know what would happen if I cut you guys?” Meyer said, according to four people in the room. “You couldn’t get a job paying more than $15 an hour.”
The implication that his players were capable of little more than playing football left some angry, others offended. “I lost all respect for him after that,” a veteran player in the room said.
Oh, it gets worse. Signs of dysfunction were apparent early on.
Several sources said Meyer stepped into the job as if he had all the answers, even though he had never coached in the NFL. Meyer said he conducted a six-month deep dive on the NFL that included interviews with his former Florida and Ohio State players as well as a study of the salary cap.
But multiple sources said Meyer was unfamiliar with star players around the league, including 49ers receiver Deebo Samuel, Seahawks safety Jamal Adams and Rams defensive tackle Aaron Donald, a three-time NFL defensive player of the year.
“Who’s this 99 guy on the Rams?” Meyer asked one staffer during the season, according to a source. “I’m hearing he might be a problem for us.”
In his first staff meeting, Meyer criticized the way NFL teams operate, noting specifically that coaches failed to take proper care of players’ health. And then, according to multiple sources in the meeting, Meyer said: “I hate scouts. Scouts are lazy.” It was an especially jarring comment given that scouts were also in the room
Ok, so he was mean to scouts. Big deal. At least he dealt with his players in a respectful manner, right?
Not long after veteran receiver John Brown signed with the Jaguars as a free agent, he ran the wrong route in practice. To correct the mistake, Brown, who is from Florida, and rookie quarterback Trevor Lawrence ran through the route again after practice.
Meyer walked up to the pair. “Hey, Trevor, you’ve got to slow it down for him,” Meyer said, according to sources. “These boys from the South, their transcripts ain’t right.”
“He told us from day one that he was going to maximize our value,” Chark added. “And I truly can’t tell you one player that maximized their value on the Jags this year.”
I’m sure Urb was kind to the assistants he hired. Right?
Sources said Meyer repeatedly belittled his staff to its members’ faces. He told his assistants he was a winner and they were losers, then demanded they defend their resumes. One player said it was coaches often looked “drained” whenever they left staff meetings with Meyer.
“The players got it bad when it came to him talking to us,” a veteran player said, “but I believe the coaches got it worse.”
All of that is bad but not necessarily enough for me to designate someone as the asshole of the week. But trust, he deserves the title. Just wait for the kicker:
Meyer was fired for cause on Dec. 15, shortly after Lambo, the Jaguars kicker, accused Meyer of kicking him during warmups and saying, “Hey dipshit, make your fucking kicks.” Meyer admitted in an interview with Dan Dakich that he made contact with Lambo but denied kicking him
What a jerk!
Tweet of the Week
I believe this to be my first eagle in several years. Nobody tell Erik Anders Lang.
Recipe Corner
Lamb Meatballs With Sumac and Feta
Tell me this doesn’t look incredible.
5 scallions, roughly chopped
1 small bunch fresh dill (1 ounce) or parsley, or a combination, roughly chopped, plus a few sprigs reserved for garnish
1 pound ground lamb
3/4 cup cooked rice or plain breadcrumbs
2 cloves garlic, minced or grated
2 tablespoons ground sumac
1 teaspoon fine salt
1/2 teaspoon freshly cracked black pepper
4 ounces feta, roughly crumbled
3 tablespoons Greek yogurt, plus more as needed
Flatbreads, cooked rice and/or salad, for serving (optional)
Position a rack in the middle of the oven and preheat to 350 degrees. Line a large, rimmed baking sheet with foil, if desired.
In the bowl of a food processor, combine the scallions and dill and/or parsley and process or pulse until finely chopped, stopping to scrape down the sides of the bowl as needed.
In a large bowl, combine the lamb, rice or breadcrumbs, garlic, sumac, salt, black pepper and about half of the chopped herbs (leave the remaining herbs in the food processor). Using your hands, gently mix everything together and form the mixture into 15 to 20 approximately 1-ounce meatballs. Place them, evenly spaced, on the rimmed baking sheet and bake for 20 minutes, or until browned and cooked through.
Meanwhile, add the feta and yogurt to the remaining herbs in the food processor and process until a bright green sauce forms, about 3 minutes, stopping to scrape down the sides of the bowl as needed. If the sauce seems too thick, add 1 more tablespoon of yogurt.
To serve, spoon the sauce onto a large plate and top with the cooked meatballs. Garnish with sprigs of dill and serve with flatbreads, a salad or extra rice.
Za’atar-Spiced Brussels Sprouts & Orzo With Bacon-Halloumi Dressing
This would be good with meatballs, or on its own.
1 1/2 cups (9 ounces) orzo
2 tablespoons kosher salt, plus more
1 tablespoon olive oil, plus more as needed
6 ounces bacon, chopped into ¾-inch pieces
8 to 9 ounces halloumi, chopped into ¾-inch pieces
1/2 teaspoon Aleppo-style pepper or 1 pinch red pepper flakes
1 bunch scallions (about 6), white and light-green parts thinly sliced, dark-green tops finely chopped and reserved as a garnish
1 1/2 pounds Brussels sprouts, trimmed and thinly sliced/shaved
4 tablespoons balsamic vinegar
1 1/2 tablespoons za’atar, plus more for serving (optional)
2 teaspoons fresh lemon juice
In a large pot, bring 4 quarts of water to a boil. Add the orzo and 2 tablespoons of the salt; cook until al dente according to package directions.
In a 12-inch sauté pan or Dutch oven over medium heat, heat 1 tablespoon of the oil. Add the bacon and cook, stirring occasionally, for 5 to 7 minutes, until crisp. Remove the pan from the heat. Using a slotted spoon, transfer the bacon to a plate. Scrape up any fond or browned bits on the bottom of the pan with a wooden spoon. Pour the bacon fat and scrapings into a small heatproof bowl.
In the now empty pan over medium heat, return 3 tablespoons of the bacon fat to the pan. Once shimmering, add the halloumi. Fry for 2 to 4 minutes, until the first side starts to brown and develop a crust, then flip (a thin metal spatula works well) and cook until browned on the second side, another 2 to 4 minutes. (If some of the pieces break apart or start to stick, no worries—the crumbles are delicious, and you can scrape up any stuck bits in step 4.)
Once the halloumi is golden, return the bacon to the pan. Reduce the heat to medium-low and add 3 tablespoons of bacon fat (you can use olive oil to make up any difference), Aleppo pepper, and the sliced scallions. Cook, stirring, for about 15 seconds, until warmed through. Add the Brussels sprouts, vinegar, za’atar, and 3/4 teaspoon salt. Toss to wilt the Brussels sprouts in the hot dressing for 30 seconds to 1 minute, adjusting the heat if needed. You’re looking for the Brussels sprouts to lose their rawness but still maintain their texture and green color.
When the orzo is done, drain and add to the Brussels sprouts mixture, or, depending on your pan size, add the Brussels sprouts mixture to the orzo. Toss well. Taste and add salt and lemon juice (I usually add a few teaspoons to brighten the flavors). Stir in the reserved dark green onion tops and serve warm. Sprinkle with a bit more za’atar before digging in, if desired.
Did Micah practice yoga this week?
Yes. 60 minutes Saturday at the Black Swan Yoga with Kaylee.
That’s 10 in-person weekend classes in 11 weeks this year. Namaste.
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