Starbucks Corp announced on Monday that it will leave the Russian market after nearly 15 years, joining McDonald’s Corp in signalling the end of some of the country’s leading Western brands’ presence.
McDonald’s said last week that it was selling its restaurants in Russia to local licensee Alexander Govor, who will rebrand them under a new identity while keeping the company’s trademarks.
Starbucks operates 130 locations in Russia, which are entirely owned and run by its licensee Alshaya Group, and employ almost 2,000 people.
Starbucks did not share financial information regarding the exit. McDonald’s had previously stated that it will take a non-cash charge of up to $1.4 billion.
Following Moscow’s invasion of Ukraine, Starbucks closed its locations and ceased all business activities in Russia, including the distribution of its products.
Starbucks, which established its first store in Russia in 2007, has stated that it will continue to support its employees there, including paying them for the next six months.
Starbucks is closing its Russian legal organisation, according to Russian media outlet Sota Vision, which cited a source.
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