As per the recent news floating around the internet, we came to know that Starbucks has decided to leave the Russian Market. The Seattle coffee company said that it would close its 130 locations and no longer have a footprint in Russia in a statement to staff. Starbucks said it will pay its almost 2,000 Russian employees for the next six months and assist them in finding new jobs.
Starbucks’ move comes after McDonald’s announced its pullout from Russia last week. McDonald’s is selling practically all of its restaurants in Russia to an existing franchisee. McDonald’s will not be allowed to utilize its name or menu in the stores. Alshaya Group, a Kuwait-based franchise operator, owns and operates Starbucks locations. In 2007, Starbucks joined the Russian market. Starbucks declared in early March, following Russia’s invasion of Ukraine, that it would keep its Russian outlets open while donating any revenues to humanitarian relief operations in Ukraine.
As per the sources, we also came to know that a few days later Starbucks backed down and effectively suspended its Russian outlets after Coca-Cola, PepsiCo, McDonald’s, and other companies temporarily ceased operations in Russia. CEO of Starbucks Crop., Kevin Johnson wrote a message to employees stating that through this dynamic situation, they will continue to make decisions that are true to their mission and values and communicate with transparency.
