Starbucks to leave Russian market
All 130 Starbucks stores in Russia have been closed since March
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Starbucks on Monday announced that it is pulling out of the Russian market over the country's invasion of Ukraine.
"Starbucks has made the decision to exit and no longer have a brand presence in the market," Starbucks told FOX Business in a statement.
STARBUCKS, COCA-COLA, PEPSICO SUSPEND OPERATIONS IN RUSSIA; AMAZON SUSPENDS WEB SERVICES SIGN-UPS
At the beginning of March, shortly after Russian forces invaded Ukraine, Starbucks joined a growing list of corporations that suspended all business activity in the country.
A photo shows a sign for a Starbucks Coffee shop in Harvard Square in Cambridge, Mass. (AP Photo/Charles Krupa, File) / AP Newsroom)
At the time, then-CEO Kevin Johnson wrote in a letter to employees that the company condemns "the horrific attacks on Ukraine by Russia."
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"We continue to watch the tragic events unfold and, today, we have decided to suspend all business activity in Russia, including shipment of all Starbucks products," Johnson said.
Johnson said the company's licensed partners agreed to "immediately pause store operations" while continuing to support the 2,000 Russian employees "who depend on Starbucks for their livelihood."
Russia's President Vladimir Putin appears on a television screen. (AP Photo/Michael Probst, File / AP Newsroom)
The company said Monday it's still committed to supporting employees through this period by offering six months of pay and helping "transition to new opportunities outside of Starbucks."
The coffee giant operated in Russia for 15 years and has 130 stores.
The move comes after McDonald's announced that it would sell its Russian business after three decades of operating in the country.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| SBUX | STARBUCKS CORP. | 100.08 | +1.82 | +1.85% |
| MCD | MCDONALD'S CORP. | 287.47 | -3.42 | -1.18% |
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"The humanitarian crisis caused by the war in Ukraine, and the precipitating unpredictable operating environment, have led McDonald's to conclude that continued ownership of the business in Russia is no longer tenable, nor is it consistent with McDonald's values," McDonald's previously said in a statement to FOX Business.
The logo of the closed McDonald's restaurant in the Aviapark shopping center in Moscow. (Picture alliance via Getty Images / Getty Images)
The company said it is pursuing the sale of its entire portfolio of McDonald's restaurants in Russia to a "local buyer" and intends to initiate the process of "de-Arching" those restaurants, which entails no longer using the McDonald's name, logo, branding, and menu, though McDonald’s will continue to retain its trademarks in Russia.
FOX Business' Danielle Wallace contributed to this report.