Starbucks is pulling out of the Russian market.
In a memo to workers Monday, the Seattle espresso big stated it determined to shut its 130 shops and not have a model presence in Russia. Starbucks stated it’ll proceed to pay its almost 2,000 Russian workers for six months and assist them transition to new jobs.
Starbucks’ transfer follows McDonald’s exit from the Russian market final week. McDonald’s is promoting its shops — that are virtually all owned by the corporate — to an present Russian franchisee. The shops received’t be allowed to make use of McDonald’s title or menu.
Starbucks’ shops are owned and operated by Alshaya Group, a Kuwait-based franchise operator. A spokesperson for Alshaya referred inquiries to Starbucks on Monday.
Starbucks entered the Russian market in 2007. In early March, after the Russian invasion of Ukraine, Starbucks introduced that it could hold its Russian shops open however donate any earnings to humanitarian reduction efforts in Ukraine.
But a couple of days later — after Coca-Cola, PepsiCo, McDonald’s and others quickly halted their enterprise in Russia — Starbucks modified course and quickly closed its Russian shops.
“Through this dynamic situation, we will continue to make decisions that are true to our mission and values and communicate with transparency,” then Starbucks Corp. CEO Kevin Johnson wrote in a message to workers.