Starbucks is Leaving Russia After 15 Years Amid Ukraine Conflict

On the heels of global fast food giant McDonald’s announcing that it would be leaving Russia, coffee chain giant Starbucks is following suite.

The company announced this week that it will be exiting the country after 15 years and will be closing 130 licensed cafes as a result.

Russia accounts for less than 1% of the company’s annual revenue which indicates the move may not be that harmful.

In recent days aside from McDonald’s, other companies to exit the country include Exxon Mobil and British American Tobacco.

All of the Starbucks cafes in Russia are licensed locations, so the Seattle-based company itself doesn’t operate them.

Starbucks said it will pay its nearly 2,000 Russian workers for six months and help them transition to new opportunities outside of the coffee chain.
Significant pressure has been on Western companies to cut ties with Russia because of the Kremlin’s attack on Ukraine.

Starbucks has suspended all business activity with the country since March 8. The pause included shipments of all Starbucks products and temporarily shuttering cafes.

McDonald’s has been in Russia for more than 30 years and said the suspension of its sizable Russian and Ukrainian operations cost it $127 million in its first quarter. The two markets accounted for 9% of its revenue in 2021. The company had roughly 850 restaurants in Russia, most of which were operated by the company instead of licensees.

McDonald’s is selling those locations for an undisclosed sum to a Siberian franchisee, who will run them under a new brand.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.