McDonald's Corp will shutter its businesses 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 on Monday (October 26) that all three of its restaurants in Iceland, operated by franchisee Jon Ogmundsson, would stop operating at midnight on Oct. 31. Ogmundsson has run the McDonald's restaurants since 2004. He told Reuters that the decision to close the restaurants was mainly due to the severe depreciation of the Icelandic Krona and high taxes on imported food. Andres Magnusson, CEO of the Federation of Trade and Service, an independent organisation aimed am helping Icelandic businesses said on Wednesday (October 28) McDonald's closure in Iceland was an example of the effect of the devalued Krona on businesses. "When the Icelandic Krona has devalued more than 50 or 60 percent over a course of just over a year, it goes without saying that, that has a major impact on such companies. The fact is that there is no nation in Europe as dependent on import of all kind of goods, as Iceland. We see that in other industries, dependent on imports, they feel the effect of this severely, and the closing of McDonald's in Iceland is a good example of the effect the state of the Krona has on their business environment," he said. Customers at a McDonald's in the Icelandic capital, Reykjavik said the fast food store will be missed. "Yes, I believe people will miss it, when this has actually happens," one woman said after having her last meal at one of Ogmundsson's restaurants. "I do not feel too good about it, McDonald's is very good," one young customer said. "I come here fairly regularly when I'm in Reykjavik," another customer added, reaching for the McDonald's ice-cream when asked what his favourite item on the menu was. Ogmundsson said he will launch a new burger chain at his three locations with locally sourced food under the name Metro Iceland's banks collapsed at the height of the global credit crisis, devastating the country's economy and leaving it dependent on a $10 billion aid package led by the International Monetary Fund. Ogmundsson said the cost of raw materials used in McDonald's meals had doubled in the last 18 months, and that there was little hope Iceland's economy would pick up enough to make the business viable. McDonald's Europe said in a statement that it would not seek a new partner in Iceland due to the state of its economy and the complexity of doing business there.