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Starbucks leaves Russia 15 years later to close 130 licensed cafes

A woman drinks coffee at Starbucks, a mall in Khimki, a suburb of Moscow.

Alexander Natoruskin | Russia

After working in Russia for 15 years Starbucks Withdraw from the market and join companies such as: McDonald’s, Exxon Mobil When British American Tobacco By withdrawing completely from the country.

The coffee giant announced on Monday that it would lose its brand presence in Russia. Starbucks has 130 locations in the country, which account for less than 1% of the company’s annual revenue. The Seattle-based company itself does not operate them, as they are all licensed locations.

Starbucks said it will pay about 2,000 Russian workers for six months to help move to new opportunities outside the coffee chain.

Both consumers and investors are pressing Western companies like Starbucks to break ties with Russia and show opposition. War between the Kremlin and UkraineHowever, it takes time to cancel the license agreement.Starbucks Since March 8th, all business activities with the country have been suspended... The suspension included the shipment of all Starbucks products and the temporary closure of the cafe.

The latest quarterly financial results released in early May did not reveal the financial impact of the suspension of operations. Former CEO Kevin Johnson has promised to donate royalties from a Russian business for humanitarian purposes.

But it was certainly a smaller financial blow than what was given to McDonald’s in Russia. Over 30 years..

The fast-food giant said its massive Russian and Ukrainian business outages cost $ 127 million in the first quarter. The two markets accounted for 9% of 2021 revenue. The company has about 850 restaurants in Russia, most of which were run by the company, not the licensee.

McDonald’s on Thursday Announced to sell those places Private amount to Siberian franchisees running them under the new brand.

Starbucks leaves Russia 15 years later to close 130 licensed cafes

Source link Starbucks leaves Russia 15 years later to close 130 licensed cafes

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