Operations

Starbucks closes Russian stores

Provided

March 9, 2022

Showing the world that it condemns Russia's attacks on Ukraine, Starbucks Corp. is closing all stores in Russia, joining several companies including McDonald's, Pepsi and Coca-Cola.

"We continue to watch the tragic events unfold and, today, we have decided to suspend all business activity in Russia, including shipment of all Starbucks products," Starbucks CEO Kevin Johnson wrote in an open letter Tuesday to employees. "Our licensed partner has agreed to immediately pause store operations and will provide support to the nearly 2,000 partners in Russia who depend on Starbucks for their livelihood."

While Starbucks does not have cafes in the Ukraine, it has 130 stores in Russia with 2,000 employees.

"In times like these, as a company and as partners, we strive to never be a bystander," Johnson wrote. "Partners' perspectives continue to help inform the actions we will take, which I want to begin sharing with you all today."

The chain is donating any royalties from business operations in Russia to humanitarian relief efforts for Ukraine, and The Starbucks Foundation has contributed $500,000 to World Central Kitchen and the Red Cross for humanitarian relief efforts for Ukraine.

"Our EMEA business will continue to work in the market to support people in need through additional financial contributions and service," Johnson said. "As this dynamic situation continues to unfold, we will listen and take additional steps to support all our partners and communities. We will let you know as we have more to share."

McDonald's said Tuesday it was temporarily shuttering its nearly 850 stores in Russia, while PepsiCo Inc. is suspending sales of Pepsi-Cola and other global beverage brands in Russia, where it has operated for more than 60 years. It will also suspend advertising and capital investments in the country but will continue to sell baby formula, milk and baby food.

"Our hearts are with the people who are enduring unconscionable effects from these tragic events in Ukraine," the Coca-Cola Co. said in a press release.

Starbucks has not responded to FastCasual's request for comment.