Starbucks to Leave Russia

    The coffee chain has been in the country since 2007. 

    Fast Food | May 23, 2022 | Ben Coley
    Starbucks exterior location.
    Starbucks
    The chain has roughly 130 units in Russia.

    Starbucks announced Monday that it will permanently leave Russia after 15 years in the country. 

    "Starbucks has made the decision to exit and no longer have a brand presence in the market," the company said in a statement. 

    The coffee chain, which temporarily shut down operations in March, has about 130 stores in Russia, owned and operated by a licensed partner. Prior to the announcement, Starbucks said it would donate royalties to humanitarian relief in Ukraine and that the Starbucks Foundation contributed $500,000 to World Central Kitchen and the Red Cross. 

    The chain plans to pay 2,000 employees in Russia for the next six months and assist them with finding other jobs. Starbucks debuted in the country in 2007. 

    The announcement comes about a week after McDonald's revealed its decision to leave Russia. The burger chain agreed to sell its 850-restaurant business to Alexander Govor, who has been a licensee since 2015 and owned 25 units in Siberia. Govor will fund salaries of corporate workers and cover liabilities to suppliers, landlords, and utilities until the transaction closes in the coming weeks. 

    McDonald's will keep its trademarks in the country, but will remove its name, logo, branding, and menu from all restaurant locations. Because of the transition, the brand is expected to incur costs of $1.2 billion to $1.4 billion. 

    Burger King parent Restaurant Brands International said in mid-March that its getting rid of its ownership stake Russia, as well, although David Shear, RBI's international president, said it will take some time due to the terms of the joint venture partnership. There are about 800 franchised Burger King restaurants in the country, and RBI has a 15 percent stake.