Starbucks Shuts Down 130 Coffee Shops in Russia
Starbucks is the latest company that has stopped doing business in Russia, ranging from McDonalds to Coca-Cola Company.
Starbucks has stopped all activity in Russia after 15 year of selling coffee, baked goods and other beverages in Russia. Following the lead of McDonalds which announced last Friday, they will “de-arch,” or remove all brand elements from Russia. McDonalds had more Russian outlets than Starbucks, with around 800. Each of the 130 locations in Russia was operated and owned by a licensed partner. Starbucks now plans to exit the market and will “no longer be a brand presence” in the markets, effectively closing those 130 stores.
Kevin Johnson, CEO, sent the following message to his partners: “We condemn Russia’s unprovoked and inhumane attacks on Ukraine. Our hearts go out for all those who have been affected.” “The human rights and humanitarian impacts of this war are catastrophic and have a ripple impact that is felt all over the globe.”
Starbucks announced Monday that it will shut down all Russian branches. It joins hundreds of other western businesses who have fled Russia following the Kremlin invasion of Ukraine.
Starbucks, a Seattle-based coffee house giant, announced in a statement that they have “made the decision not to remain” in Russia. It previously suspended operations in Russia on March 8.
This news comes as Starbucks has condemned Russia's March attacks on Ukraine and declared that any royalties it receives from Russian business operations will be donated to humanitarian relief efforts in Ukraine. Starbucks Foundation donated $500,000 to the Red Cross, World Central Kitchen and other humanitarian organizations in Ukraine. A statement, released on March 4, stated that Starbucks would continue to support those in need through financial contributions as well as service through their EMEA company.
On March 8, Starbucks and their license partners agreed to suspend all store operations and provide support for workers who would lose their jobs as a result. Starbucks will continue to support the nearly 2,000 Russian workers, or “green apron” partners. This includes providing them with six months of pay and assisting them to transition to new opportunities.
Starbucks opened its first Russian store at a Khimki mall near Moscow 15 years ago. According to Reuters, a company executive referred to the move at the time as “important steps for the company.”
Starbucks announced in March that it would temporarily close its stores and stop shipments to Russia as a response to the invasion.
Through this dynamic environment, we will continue making decisions that are true and consistent with our mission and values. We will also communicate openly. Johnson thanked staffers for their concern and expressed gratitude in a memo.
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