New York
CNN Business
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McDonald’s and Starbucks are shutting their restaurants and cafes in Russia, and Coca-Cola is suspending its operations there in response to Russia’s invasion of Ukraine. PepsiCo is also pulling some products from the country.
“McDonald’s has decided to temporarily close all our restaurants in Russia and pause all operations in the market,” CEO Chris Kempczinski said in a statement Tuesday.
There were 847 locations of McDonald’s in Russia at the close of last year, according to an investor document.
Globally, most McDonald’s
(MCD) locations are operated by franchise operators. But that’s not the case in Russia, where 84% of locations are operated by the company, according to the document. Russia’s restaurants, along with another 108 in Ukraine, all operated by McDonald’s
(MCD), accounted for 9% of the company’s revenue in 2021, according to the document.
“In Russia, we employ 62,000 people who have poured their heart and soul into our McDonald’s brand to serve their communities. We work with hundreds of local, Russian suppliers and partners who produce the food for our menu and support our brand,” Kempczinski said. “And we serve millions of Russian customers each day who count on McDonald’s. In the thirty-plus years that McDonald’s has operated in Russia, we’ve become an essential part of the 850 communities in which we operate.”
But, he added, “at the same time, our values mean we cannot ignore the needless human suffering unfolding in Ukraine.”
In a Tuesday message to employees, Starbucks CEO Kevin Johnson said that “today, we have decided to suspend all business activity in Russia.”
He added that “our licensed partner has agreed to immediately pause store operations and will provide support to the nearly 2,000 [employees] in Russia who depend on Starbucks for their livelihood.”
Johnson added that Starbucks is halting shipment of all Starbucks products to Russia. “We condemn the horrific attacks on Ukraine by Russia and our hearts go out to all those affected,” he said.
Coca-Cola also said Tuesday that it is “suspending its business in Russia.”
The company stated that “our hearts are with the people who are enduring unconscionable effects from these tragic events in Ukraine,” adding that it will monitor the situation as things change.
On Tuesday, PepsiCo CEO Ramon Laguarta laid out how PepsiCo is approaching the situation.
“Given the horrific events occurring in Ukraine we are announcing the suspension of the sale of Pepsi-Cola, and our global beverage brands in Russia, including 7Up and…
Read More: McDonald’s is temporarily closing Russian restaurants