Starbucks is joining the ranks of companies that are ending their presence in Russia following its invasion of Ukraine.
In a press release Monday, the coffee chain said, “As we mentioned on March 8, we have suspended all business activity in Russia, including shipment of all Starbucks products.”
“Starbucks has made the decision to exit and no longer have a brand presence in the market,” it announced.
The company has 130 stores in Russia.
However, they have been closed since March 8.
NEW: Starbucks says it has exited Russia and will no longer have a brand presence there, according to a press release.
The company says it has been operating in Russia for 15 years and has now closed its 130 licensed cafes in the country.
— Ana Cabrera (@AnaCabrera) May 23, 2022
In a March letter, the company said, “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.”
“Our licensed partner has agreed to immediately pause store operations and will provide support to the nearly 2,000 partners in Russia who depend on Starbucks for their livelihood,” it added.
The company has been operating in Russia for roughly 15 years.
Profits from its stores in Russia account for roughly 1% of Starbucks’ annual revenue.
Other companies have also announced they will end their business operations in Russia.
In a May 16 statement, McDonald’s announced it is ending its operations in the country.
“After more than 30 years of operations in the country, McDonald’s Corporation announced it will exit the Russian market and has initiated a process to sell its Russian business. This follows McDonald’s announcement on March 8, 2022, that it had temporarily closed restaurants in Russia and paused operations in the market,” the statement said.
It added, “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 President and Chief Executive Officer, Chris Kempczinski, said, “We have a long history of establishing deep, local roots wherever the Arches shine.”
“We’re exceptionally proud of the 62,000 employees who work in our restaurants, along with the hundreds of Russian suppliers who support our business, and our local franchisees. Their dedication and loyalty to McDonald’s make today’s announcement extremely difficult,” he continued.
Finally, he added, “However, we have a commitment to our global community and must remain steadfast in our values. And our commitment to our values means that we can no longer keep the Arches shining there.”
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