A girl drinks espresso in a Starbucks in a mall in Khimki exterior Moscow.
Alexander Natruskin | Russia
Starbucks is suspending all enterprise exercise in Russia as Vladimir Putin’s forces continue their nearly two-week-old assault on Ukraine.
The announcement comes after fellow restaurant big McDonald’s stated earlier on Tuesday that they would temporarily close their Russian restaurants. The burger chain confronted criticism for staying silent on the struggle, given its massive footprint in Russia.
Starbucks has a lot smaller publicity to the Russian and Ukrainian markets. The corporate has about 130 areas in Russia and Ukraine, in response to Financial institution of America Securities. All of these cafes are licensed areas, so the Seattle-based firm would not function any of them itself. Cowen analyst Andrew Charles estimated that these areas accounted for lower than 1% of Starbucks’ international income.
CEO Kevin Johnson wrote in a letter on Tuesday afternoon that the corporate would supply help to its almost 2,000 workers who stay in Russia. The pause on enterprise exercise consists of delivery Starbucks merchandise and its licensee will quickly shutter Starbucks shops.
In a separate letter launched Friday, Johnson condemned the assaults on Ukraine and vowed to donate royalties from its Russian enterprise to humanitarian causes in Ukraine.
“We condemn the unprovoked, unjust and horrific assaults on Ukraine by Russia, and our hearts exit to all these affected,” Johnson wrote then.
