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Starbucks to exit Russia over Ukraine warStarbucks to exit Russia over Ukraine war

Coffee brand says it will support nearly 2,000 workers with 6 months of pay

Ron Ruggless, Senior Editor

May 23, 2022

1 Min Read
Starbucks to Exit Russia Konstantin Zavrazhin Getty Images 1540x800
In an April photo, people sit on benches outside a closed Starbucks in Moscow.Konstantin Zavrazhin / Getty Images

Starbucks Corp. will exit the Russian market in the wake of that country’s invasion of neighboring Ukraine, the company said Monday, after earlier suspending business activity in the country.

The Seattle, Wash.-based coffee chain, which has about 130 licensed stores in Russia, said it would continue to support the brand’s nearly 2,000 workers in Russia with pay for six months “and assistance for partners to transition to new opportunities outside of Starbucks.” It had been in the market for about 15 years.

Starbucks on March 8 had suspended business activity in Russia, including the shipment of branded products, along with a number of other Western businesses. Starbucks entered the Russia market in 2007.

Last week, Chicago-based McDonald’s Corp. said Thursday it had agreed to sell its restaurants in Russia to existing licensee Alexander Govor and its about 840 stores in the country would be rebranded. About 15% of its units were franchised.

Kevin Johnson, former president and CEO of Starbucks, said in March, after condemning the “unprovoked, unjust and horrific attacks on Ukraine,” that “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.”

The company also said it would donate any royalties we receive from its business operations in Russia to humanitarian relief efforts for Ukraine and the Starbucks Foundation had contributed $500,000 to World Central Kitchen and the Red Cross for humanitarian relief efforts for Ukraine.

Starbucks, founded in 1971, has more than 34,000 stores worldwide.

Contact Ron Ruggless at [email protected]

Follow him on Twitter: @RonRuggless

About the Author

Ron Ruggless

Senior Editor, Nation’s Restaurant News / Restaurant Hospitality

Ron Ruggless serves as a senior editor for Informa Connect’s Nation’s Restaurant News (NRN.com) and Restaurant Hospitality (Restaurant-Hospitality.com) online and print platforms. He joined NRN in 1992 after working 10 years in various roles at the Dallas Times Herald newspaper, including restaurant critic, assistant business editor, food editor and lifestyle editor. He also edited several printings of the Zagat Dining Guide for Dallas-Fort Worth, and his articles and photographs have appeared in Food & Wine, Food Network and Self magazines. 

Ron Ruggless’ areas of expertise include foodservice mergers, acquisitions, operations, supply chain, research and development and marketing. 

Ron Ruggless is a frequent moderator and panelist at industry events ranging from the Multi-Unit Foodservice Operators (MUFSO) conference to RestaurantSpaces, the Council of Hospitality and Restaurant Trainers, the National Restaurant Association’s Marketing Executives Group, local restaurant associations and the Horeca Professional Expo in Madrid, Spain.

Ron Ruggless’ experience:

Regional and Senior Editor, Informa Connect’s Nation’s Restaurant News and Restaurant Hospitality (1992 to present)

Features Editor – Dallas Times Herald (1989-1991)

Restaurant Critic and Food Editor – Dallas Times Herald (1987-1988)

Editing Roles – Dallas Times Herald (1982-1987)

Editing Roles – Charlotte (N.C.) Observer (1980-1982)

Editing Roles – Omaha (Neb.) World-Herald (1978-1980)

Email: [email protected]

Social media:

Twitter@RonRuggless

LinkedIn: www.linkedin.com/in/ronruggless

Instagram: @RonRuggless

TikTok: @RonRuggless

 

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