MY KOLKATA EDUGRAPH
ADVERTISEMENT
regular-article-logo Monday, 06 May 2024

Starbucks Corp to exit Russian market after 15 years

The coffee chain joins McDonald’s Corp in marking the end of the presence of some of the top western brands in the country

Reuters Published 24.05.22, 03:39 AM
Starbucks’ decision to wind down its operation in Russia is different to the approach some other foreign companies have taken.

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

Starbucks Corp said on Monday it will exit the Russian market after nearly 15 years as the coffee chain joins McDonald’s Corp in marking the end of the presence of some of the top western brands in the country.

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

ADVERTISEMENT

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 is selling its majority stake in Russia’s biggest carmaker with an option to buy back the stake.

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 said it will continue to support its employees there, including paying them for six months.

Follow us on:
ADVERTISEMENT