Starbucks leaves the Russian market and closes 130 stores

Starbucks withdraws from the Russian market.

In a memo to employees on Monday, the Seattle coffee giant said it had decided to close its 130 stores and no longer have a brand in Russia. Starbucks said it would continue to pay its nearly 2,000 Russian employees for six months and help them transition into new jobs.

Starbucks’ decision follows McDonald’s exit from the Russian market last week. McDonald’s is selling its stores——almost all of which are company-owned——to an existing Russian franchisee. Stores will not be permitted to use the McDonald’s name or menu.

Starbucks stores are owned and operated by Alshaya Group, a Kuwait-based franchise operator. A spokesperson for Alshaya referred the questions to Starbucks on Monday.

Starbucks entered the Russian market in 2007. In early March, after the Russian invasion of Ukraine, Starbucks announced that it would keep its Russian stores open but donate all profits to humanitarian relief efforts in Ukraine.

But days later——after Coca-Cola, PepsiCo, McDonald’s and others temporarily halted operations in Russia——Starbucks changed course and temporarily closed its Russian stores.

“Through this dynamic situation, we will continue to make decisions that are true to our mission and values ​​and to communicate with transparency,” Starbucks Corp. CEO Kevin Johnson wrote in a message to employees at the time.