Mon 23rd May 2022 - Starbucks to pull out of Russia, 130 sites to close Starbucks to pull out of Russia, 130 sites to close: Starbucks has said it will exit the Russian market after nearly 15 years following the country’s ongoing conflict with Ukraine. The Seattle-based coffee chain has 130 stores in Russia, operated by Kuwait-based licensee Alshaya Group, which have nearly 2,000 employees and account for less than 1% of the company’s annual revenue. In March, Starbucks closed its stores and suspended all business activity in Russia, including the shipment of its products to the country, following its invasion of Ukraine. The company, which opened its first outlet in Russia in 2007, has now said it will no longer have a brand presence in the country. In a memo to employees, Starbucks said it will continue to support them, including paying them for six months. In its latest quarterly results, released in early May, the company did not disclose the financial impact of the suspension of business operations. Starbucks also did not provide details on the financial impact of the exit. Earlier this month, McDonald’s said it would be taking a hit of between $1.2bn and $1.4bn by pulling out of Russia after 30 years of operating there. It has since sold its 850-strong Russian estate to Alexander Govor, an existing McDonald’s licensee who operates 25 restaurants in Siberia. Govor agreed to buy the restaurants and operate them under a new name, and to retain the 62,000 McDonald’s Russian employees for at least two years on equivalent terms. McDonald’s did not disclose the terms of the sale, but it is subject to regulatory approval and is expected to close within a few weeks. They are the latest in a long line of companies to have exited Russia since March. Yum! Brands also reported earlier this month that following the closure of its Russian operation, the UK now accounts for 8% of its system sales worldwide. It also said Pizza Hut system sales in Europe, including the UK, were up 28% – the continent now accounting for 8% of Pizza Hut’s system sales globally following the closure of its restaurants in Russia.