AP Yonhap News
Starbucks, the world’s largest coffee chain, announced on the 23rd (local time) that it will withdraw from the Russian market that has invaded Ukraine.
Starbucks today announced that it will permanently close 130 Starbucks stores in Russia. It has been 15 years since the first store opened in Russia in 2007. “Starbucks has decided to withdraw from the Russian market and not leave its brand in Russia in the future,” Starbucks said in a statement.
After the Russian invasion of Ukraine, Starbucks had already stopped operating in Russia and exporting Starbucks products to Russia on March 8. Starbucks CEO Kevin Johnson said at the time: “We condemn the unjustified and horrific Russian attack on Ukraine.” It took two more months for the decision to withdraw completely, apparently because it took time to terminate the license agreement. Starbucks has been operating in Russia under a license agreement with Kuwaiti company MH Al Shaya.
Western companies such as ExxonMobil, British American Tobacco (BAT) and Renault withdrew from the Russian market as investors and consumers pressured to sever ties with Russia following the outbreak of the war. On the 18th, McDonald’s, a fast food chain, announced that it was withdrawing from the Russian market.
The impact of Starbucks’ withdrawal from its Russian business is expected to be negligible. The Russian business accounts for less than 1% of Starbucks’ total sales. Starbucks said it plans to provide salaries for regarding 2,000 Russian employees over the next six months and help them find jobs.
Some companies, such as Subway and Burger King, continue to operate in Russia due to problems with franchise agreements with local companies. However, Burger King has decided to phase out its stake in the Russian business.
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