- Starbucks is suspending all business activity in Russia, and its licensee will temporarily shutter locations there.
- The coffee chain has about 130 outlets in Russia and Ukraine, according to Bank of America Securities.
- The announcement comes after restaurant giant McDonald’s said earlier on Tuesday that it would temporarily close its restaurants in the country.
Starbucks has much smaller exposure to the Russian and Ukrainian markets. The company has about 130 outlets in Russia and Ukraine, according to Bank of America Securities. They are all licensed locations, so the Seattle-based company itself doesn’t operate them. Cowen analyst Andrew Charles estimated that they account for less than 1% of Starbucks’ global revenue.
CEO Kevin Johnson wrote in a letter on Tuesday afternoon that the company would provide support to its nearly 2,000 employees who live in Russia. The pause on business activity includes shipping Starbucks products and its licensee will temporarily shutter the stores.
In a separate letter released Friday, Johnson condemned the attacks on Ukraine and vowed to donate royalties from its Russian business to humanitarian causes in the besieged nation.
“We condemn the unprovoked, unjust and horrific attacks on Ukraine by Russia, and our hearts go out to all those affected,” Johnson wrote in that letter.
Source: Business - cnbc.com
