The world-renowned coffee Franchise Starbucks proclaimed on Monday its full withdrawal from the Russian market, closing 130 local stores and cutting down all nearly 2,000 employees. This is the second internationally renowned catering company to proclaim the exiting of its business from Russian after McDonald’s.
Starbucks has not yet proclaimed the financial impact of its withdrawal from the business, but It is believed that the impact on the overall finances will not be significant considering Starbucks’ total revenue from the Russian market accounts for less than 1%.
Starbucks entered the Russian market and opened its first branch in 2007, and has since become one of the most famous local coffee franchise brands for 15 years.
In fact, as early as March this year, Starbucks had paused all local business activities, including the supply of all Starbucks products, and closing stores at the beginning of the Russo-Ukrainian war. Now, the full closure is officially proclaimed. Starbucks has promised to keep supporting local employees, including paying them six months’ liquidated damages for salary and assisting them in finding a second job, etc.
Earlier, McDonald’s proclaimed its withdrawal from Russia, and two well-known catering companies left one after another within a week. It is believed that the wave of the international community boycotting the Russian market will be unstoppable due to the invasion of Ukraine.