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Starbucks to exit Russia after nearly 15 years

Stock Markets May 23, 2022 06:42PM ET
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2/2 © Reuters. FILE PHOTO: The Starbucks logo is seen outside a Starbucks cafe in Warsaw March 6, 2011. REUTERS/Kacper Pempel 2/2

(Reuters) -Starbucks Corp said on Monday it will exit the Russian market after nearly 15 years as the coffee chain joins McDonald's Corp (NYSE:MCD) in marking the end of the presence of some of the top Western brands in the country.

Seattle-based Starbucks (NASDAQ:SBUX) has 130 stores in Russia, operated by its licensee Alshaya Group, with nearly 2,000 employees in the country.

Starbucks' decision to wind down its operation in Russia is different to the approach some other foreign companies have taken.

McDonald's last week said it was selling its restaurants in Russia to its local licensee Alexander Govor to be rebranded under a new name, but will retain its trademarks, while France's Renault (EPA:RENA) is selling its majority stake in Russia's biggest carmaker with an option to buy back the stake.

A slew of other Western companies, including Imperial Brands (OTC:IMBBY) and Shell (LON:RDSa), are cutting ties with the Russia market by agreeing to sell their assets in the country or handing them over to local managers.

In March, Starbucks shuttered its stores and suspended all business activity in Russia, including the shipment of its products to the country, following Moscow's invasion of Ukraine.

The company, which opened its first outlet in Russia in 2007, said it will continue to support its employees there, including paying them for six months.

Starbucks did not provide details on the financial impact of the exit. McDonald's had said it would take a primarily non-cash charge of up to $1.4 billion.

UPDATE 4-McDonald's to sell Russia restaurants to local operator, rebrand - Reuters News'Golden Arches' come down near Moscow as McDonald's Russia rebrand begins - Reuters NewsFACTBOX-Companies sell their businesses in Russia - Reuters NewsFACTBOX-The Great Rebrand: Western business reborn in Russia under new names - Reuters NewsFACTBOX -Companies count the cost of ditching Russia - Reuters News

Starbucks to exit Russia after nearly 15 years
 

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Comments (5)
Lake Lot
Lake Lot May 23, 2022 9:31PM ET
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Hopefully Russia will understand being within the iron curtain and being isolated to extinction
Roger Miller
Roger Miller May 23, 2022 6:48PM ET
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Not sure if punishing a country's citizens for the deeds of it's government has or will ever be effective.  Imagine if all American citizens were always alienated or punished for the deeds of their government, or any other country for that matter.  People, companies, and politicians in particular, need to start working towards peace and friendship, not fuel the flames of war.
Lake Lot
Lake Lot May 23, 2022 6:48PM ET
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May the Russians burn in pergatory
Oleksii Trugov
Oleksii Trugov May 23, 2022 6:48PM ET
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At least 70% of those "innocent" civilians support the invasion and mass murder of Ukrainians.
Brad Albright
Brad Albright May 23, 2022 11:05AM ET
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For many dark decades after WWII, Russians were shut off from the world. Now they are headed back to that isolation.
Kate Davis
Kate Davis May 23, 2022 10:41AM ET
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It's a good news to Russians. They can grow their own businesses.
Tyrone Jackson
Tyrone Jackson May 23, 2022 10:38AM ET
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Can’t wait until they close up shop in the US - Terrible overpriced coffee. Rude purple haired dikes at most of them . Yea I want my coffee servered by he/she gender confused white devils
Brad Albright
Brad Albright May 23, 2022 10:38AM ET
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Keep reminding us of conservative's bigotry.
ch hal
ch hal May 23, 2022 10:38AM ET
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dude ****is your problem
 
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