Mcdonald's to close in Iceland

McDonald's is to close its business in Iceland because it is too expensive for the franchise to operate after the country's financial crisis.

The world's largest fast-food company said that all three of its restaurants in the country, operated by franchisee Jon Ogmundsson, would stop operating at midnight on 31st October.

The firm said the decision to close the restaurants was mainly due to the severe depreciation of the Icelandic krona and high taxes on imported food.

In a statement McDonald's Europe said that it would not seek a new partner in Iceland due to the state of its economy and the complexity of doing business there.