After 15 years and the opening of 130 stores, Starbucks has announced it will be leaving Russia due to its invasion of Ukraine. The company has had all business activity in the country suspended since March, during which time Starbucks products were not shipped, while other measures included the temporary closure of stores.
The action comes just days after fast-food giant McDonald’s pulled out. The Golden Arches had been in Russia for 30 years. But pressure from investors was too much and they folded. That pressure, combined with a departure from the likes of McDonald’s was too much to ignore for the Seattle coffee maker, and they become just the latest casualty in what is shaping up to be a mass exodus.
In all, there are just 2,000 Starbucks employees in Russia, all of whom will continue to be paid for six months with the hope that they can find new opportunities.
All 130 stores are operated by Starbucks’ licensee, Alshaya Group.
It is unknown at this time what financial impact will occur. The Russian locations account for less than one percent of total revenue, so the likelihood of major financial damage is minimal.