McDonald’s and Starbucks closed their restaurants and cafes in Russia. The move was followed by Coca Cola and PepsiCo which also suspended operations in response to the invasion Russia to Ukraine.
“McDonald’s has decided to temporarily close all of our restaurants in Russia and temporarily suspend all operations in the market,” CEO Chris Kempczinski said in a statement Tuesday.
Referring to investor documents, there were 847 McDonald’s locations in Russia at the close of last year.
Globally, most McDonald’s (MCD) locations are operated by franchise operators, but not in Russia, where 84 percent of locations are operated directly by the company.
Russian restaurants, along with 108 others in Ukraine, are all operated by McDonald’s and accounted for 9 percent of the company’s revenue year-on-year.
“In Russia, we employ 62,000 people into our McDonald’s brand to serve their community. We work with hundreds of local Russian suppliers and partners who produce food for our menu and support our brand,” explains Kempczinski.
Meanwhile, Starbucks CEO Kevin Johnson said he had decided to suspend all business activities in Russia.
“Our licensed partners have agreed to immediately cease store operations and will provide support to the nearly 2,000 (employees) in Russia who depend on Starbucks for their livelihoods,” Johnson said.
Johnson added that Starbucks stopped shipping all Starbucks products to Russia. This is Starbucks’ stance on the horrific attacks in Ukraine by Russia.
Similar to Starbucks, Coca-Cola on the same day, also suspended its business in Russia.
The company stated that it is with those who have suffered the devastating effects of the tragic events in Ukraine.
(dzu/one)
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