Starbucks leaves the Russian market, closes 130 stores – The Morning Call
Starbucks is leaving the Russian market.
In a note to employees on Monday, coffee giant Seattle said it had decided to close its 130 stores and no longer introduce the brand in Russia. Starbucks has said it will continue to pay its nearly 2,000 Russian employees for six months and help them move to new jobs.
Next is the Starbucks move McDonald’s exit from the Russian market last week. McDonald’s sells its stores __, which are almost all owned by the company __ to an existing Russian franchisee. Stores will not be allowed to use McDonald’s name or menu.
Starbucks stores are owned and operated by Alshaya Group, a franchise operator from Kuwait. An Alshaya spokesman handed over questions to Starbucks on Monday.
Starbucks entered the Russian market in 2007. In early March, after the Russian invasion of Ukraine, Starbucks announced it would keep its Russian stores open but donated any proceeds to aid Ukraine.
But a few days __ after Coca-Cola, PepsiCo, McDonald’s and others temporarily ceased operations in Russia __ Starbucks changed course and temporarily closed its Russian stores.
“In this dynamic situation, we will continue to make decisions that are in line with our mission and values, as well as transparency of communication,” wrote the then CEO of Starbucks Corp. Kevin Johnson in a message to the staff.