SEBASTIAN EKLUND
The Martlet (University of Victoria)

VICTORIA (CUP) ”“ The current global financial crisis will have at least one positive effect on health: Iceland will now be completely devoid of the golden arches.

McDonald’s, the mightiest of fast food chains, is closing shop and jumping ship.

All three franchised stores in the country will be closed as a result of Icelanders getting hit especially hard by the recession.

The nation of roughly 320,000 people was forced to take a $2.1 billion loan from the International Monetary Fund and saw a significant devaluation of its currency, the Icelandic króna.

After the major banks in Reykjavík crashed, Icelanders began criticizing the right-wing government for their free market model and blaming politicians in part for the crisis. Since 2008, the recession in Iceland started pushing people towards cheaper local goods rather than spending on imported novelties.

Icelanders have since begun substituting costly meals for more traditional foods. This change in consumer choice is a reflection of the economic situation, and the effect on McDonald’s is an extension of this.

As of 2007, Icelanders paid a beefy $7.44 for the signature Big Mac burger, which made Iceland one of the world’s most expensive McDonald’s options.

Ingredient costs doubled over the past year for McDonald’s Iceland locations. Since the chain in Iceland is not profitable, the owner of the stores, Jon Gardar Ogmundsson, is abandoning the franchise. He will reopen under a different name with a focus on providing local products instead of the imported McDonald’s fare.