Starbucks has officially exited Russia after operating in the country for 15 years.
The coffee chain is joining other major companies such as ExxonMobil and McDonald’s in protest of Russia’s invasion of Ukraine.
All 130 of the company’s stores in Russia, which represents less than 1% of the firm’s annual revenue, are licensed locations, meaning Starbucks itself does not operate them.
The company added that it will pay its almost 2,000 workers in the country for six months in order to help them transition to new jobs.
Since the initial invasion, consumers and investors worldwide have emphasized the importance of showing opposition towards the war.
However, for many businesses, cutting ties doesn’t happen overnight. Although Starbucks itself suspended business activity back in early March, it is just now able to officially close the stores.
Starbucks did not reveal whether these closures had an impact on their revenue during their most recent quarterly results, but it is likely to have had at least a slight impact.
In comparison, McDonald’s reported a $127 million loss during the first quarter after suspending its Russian and Ukrainian operations, which accounted for 9% of its revenue last year. Last week, the fast-food giant revealed it would sell these locations to a Siberian franchisee that will operate them under a new brand.
