McDonald’s and Starbucks to close in Russia after massive outrage against Putin’s war in Ukraine
MCDONALD’S and Starbucks have announced they will close all of their restaurants in Russia.
McDonald’s which employs 62,000 people in Russia, will shut all 850 of its restaurants temporarily – while Starbucks is pausing operations at 130 stores.
Unlike other big fast-food brands in Russia that are owned by franchisees, including KFC, Pizza Hut and Burger King, Mcdonald’s owns 84% of its Russian locations.
Pressure has been mounting for McDonald’s and other companies like PepsiCo that remain in Russia to pull out.
Many corporations have ceased operations in the country in protest of the Ukraine invasion.
In an open letter to employees, McDonald’s President and CEO Chris Kempckinski said closing these stores, for now, is the right thing to do.
He said: “As we move forward, McDonald’s will continue to assess the situation and determine if any additional measures are required.
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“At this juncture, it’s impossible to predict when we might be able to reopen our restaurants in Russia.
“We are experiencing disruptions to our supply chain along with other operational impacts.
“We will also closely monitor the humanitarian situation.”
Meanwhile a Starbucks spokerperson said: “We continue to watch the tragic events unfold and, today, we have decided to suspend all business activity in Russia, including shipment of all Starbucks products.
“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 last week announced they have been donating royalties from sales in Russia to relief efforts in Ukraine.
Amazon has followed suit – today announcing that they are now blocking people in Russia and Belarus from signing up for their web services.
Drew Herdener, a company spokesman said: “Given the current events and the uncertainty and lack of credit available in Russia right now, we’re not accepting new Russian A.W.S. customers at this moment.”
Meanwhile Coca-cola has announced they will be suspending its business in Russia.
A spokesperson said: “Our hearts are with the people who are enduring unconscionable effects from these tragic events in Ukraine.
“We will continue to monitor and assess the situation as circumstances evolve.”