Operations
Starbucks pulling out of Russia after 15 years
May 23, 2022
Starbucks is ending its relationship with Russia after 15 years, according to a CNBC.com report.
The news comes on the heels of McDonald's selling off all its stores to a Russian licensee. McDonald's is selling all its stores to Alexander Govor, the brand licensee.
Starbucks has 130 locations in Russia, which make up less than 1% of the company's annual revenue.
All of the stores in Russia are licensed, meaning Starbucks doesn't operate them and Starbucks employs almost 2,000 workers. The chain said it will pay employees for six months and provide assistance for them to find new jobs.
Since March 8, Starbucks had suspended all business activity with Russia, which included temporarily closing locations and halting shipping of Starbucks products. Russia's invasion of Ukraine and the continued war there has pressured many Western companies to end business and cut ties with Russia.
In its latest quarterly results released in early May, the company did not disclose the financial impact of the suspension of business operations.
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