BELOW SUPERNAV drop zone ⇩

Starbucks leaving Russian market, shutting 130 stores

A Starbucks coffee shop in downtown Pittsburgh. (AP Photo/Gene J. Puskar, File)

MAIN AREA TOP drop zone ⇩

MAIN AREA TOP drop zone ⇩

(AP) — Starbucks is pulling out of the Russian market.

In a memo to employees Monday, the Seattle coffee giant said it decided to close its 130 stores and no longer have a brand presence in Russia. Starbucks said it will continue to pay its nearly 2,000 Russian employees for six months and help them transition to new jobs.

Starbucks’ move follows McDonald’s exit from the Russian market last week. McDonald’s is selling its stores, which are almost all owned by the company, to an existing Russian franchisee. The stores won’t be allowed to use McDonald’s name or menu.

Starbucks’ stores are owned and operated by Alshaya Group, a Kuwait-based franchise operator. A spokesperson for Alshaya referred questions to Starbucks on Monday.

Starbucks entered the Russian market in 2007. In early March, after the Russian invasion of Ukraine, Starbucks announced that it would keep its Russian stores open but donate any profits to humanitarian relief efforts in Ukraine.

But a few days later, after Coca-Cola, PepsiCo, McDonald’s and others temporarily halted their business in Russia, Starbucks changed course and temporarily closed its Russian stores.

“Through this dynamic situation, we will continue to make decisions that are true to our mission and values and communicate with transparency,” then Starbucks Corp. CEO Kevin Johnson wrote in a message to employees.

Business

Copyright 2024 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed

Site Settings Survey

 

MAIN AREA MIDDLE drop zone ⇩

Trending on NewsNation

MAIN AREA BOTTOM drop zone ⇩

tt

KC Chiefs parade shooting: 1 dead, 21 shot including 9 kids | Morning in America

Witness of Chiefs parade shooting describes suspect | Banfield

Kansas City Chiefs parade shooting: Mom of 2 dead, over 20 shot | Banfield

WWE star Ashley Massaro 'threatened' by board to keep quiet about alleged rape: Friend | Banfield

Friend of WWE star: Ashley Massaro 'spent hours' sobbing after alleged rape | Banfield

Fog

la

58°F Fog Feels like 58°
Wind
1 mph W
Humidity
86%
Sunrise
Sunset

Tonight

Cloudy skies early, then partly cloudy after midnight. Low 51F. Winds light and variable.
51°F Cloudy skies early, then partly cloudy after midnight. Low 51F. Winds light and variable.
Wind
2 mph NE
Precip
6%
Sunset
Moon Phase
Waxing Gibbous