At the start of the global recession, the Icelandic banks famously collapse forcing the government to rely on a £6.1bn international aid package. This caused a massive drop in the value of the currency (krona), making the importing of goods extremely expensive.
McDonald’s have announced that they will pull their franchised operation out of Iceland due to the cost of importing goods. The cost of import 1Kg of onions from Germany costs the same as a good bottle of Whisky. The restaurants have never been busier, but they have seen a substantial drop in profits. Lyst the firm that runs the franchises says that they will reopen the restaurants under another brand, making it possible for them to source goods locally reducing the operational costs.
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