Topline
Starbucks will close all its business in Russia, the company announced in a note to employees Monday, becoming the latest multinational firm to sever ties with the country following its invasion of Ukraine.
Customers buy coffee on the opening day of Russia’s first Starbucks in Moscow in 2007.
Key Facts
All of Starbucks’ 130 licensed locations in Russia will close permanently and Starbucks will “ no longer have a brand presence” in the country, the memo said.
Starbucks’ exit comes a week after fellow American chain McDonald’s announced its own departure from the Russian market.
The company said it will continue to pay its roughly 2,000 Russian workers for the next six months.
Key Background
Starbucks first opened in Russia in 2007, opening its 100th store in the country in 2015. The coffee giant suspended all Russian business operations and temporarily shuttered all its Russian cafes in early March. The Kuwait-based Alshaya Group operates all Starbucks stores in Russia as its sole licensee.
Big Number
Less than 1%. That’s how much of Starbucks’s global revenue comes from Russia, according to analyst estimates.
Tangent
Former McDonald’s locations in Russia began the process of removing the company’s logo and name from its locations Monday, four days after McDonald’s announced the sale of its Russian business to a local licensee. The fast food chain’s exposure to Russia was much greater than Starbucks’, as it operated more than 800 locations in the country and Russia accounted for 9% of McDonald’s global revenue in 2021.
Further Reading
Starbucks to Exit Russia After Pausing Business There in March (Bloomberg)
After Long Dispute, a Russian Starbucks (New York Times)
No More Golden Arches: Russia Moves Forward With McDonald’s Rebrand (Forbes)
Source: https://www.forbes.com/sites/dereksaul/2022/05/23/starbucks-will-exit-russia-close-130-cafes/