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Starbucks leaving Russian market, shutting 130 stores

Ukraine-Russia-War-Starbucks
Posted at 9:13 AM, May 23, 2022
and last updated 2022-05-23 12:13:18-04

Starbucks is the latest company to pull out of the Russian market.

In a memo to employees Monday, the Seattle coffee giant said it decided to close its 130 stores and no longer have a brand presence in Russia.

Starbucks said it will continue to pay its nearly 2,000 Russian employees for six months and help them transition to new jobs.

Starbucks' Russian stores are owned and operated by Alshaya Group, a Kuwait-based franchise operator.

Starbucks had suspended all business activity in Russia on March 8 due to the war in Ukraine.

Starbucks isn't the only major company to leave Russia.

McDonald's announced last week that it had begun the process of selling its Russian business to one of its licensees in the country.

Alexander Govor, who operates 25 restaurants in Siberia, has agreed to buy McDonald’s 850 Russian restaurants and operate them under a new brand, McDonald's said.

McDonald’s didn’t disclose the sale price.