McDonald’s, Starbucks to shut down Russia operations
The QSR giants join a list of brands that are suspending any presence in the country during its invasion of Ukraine.
McDonald’s and Starbucks have joined other American multinational companies that have decided to pause operations in Russia in response to its invasion of Ukraine.
“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 that was originally sent to employees and franchisees.
The fast food giant is continuing to pay full salaries for our Ukrainian employees, and has donated $5 million to its Employee Assistance Fund, adding it will support relief efforts led by the International Red Cross in the region.
McDonald’s employs 62,000 people in Russia and operates in 850 communities. It has been in the country for over thirty years.
“We understand the impact this will have on our Russian colleagues and partners, which is why we are prepared to support all three legs of the stool in Ukraine and Russia. This includes salary continuation for all McDonald’s employees in Russia,” Kempczinski added.
McDonald’s will continue to assess the situation and determine “if any additional measures are required”, with Kempczinski saying that it is “impossible to predict when we might be able to reopen our restaurants in Russia.”
“We are experiencing disruptions to our supply chain along with other operational impacts. We will also closely monitor the humanitarian situation,” he said.
In his first letter to partners on March 4, CEO Kevin Johnson said the business will donate any royalties they receive from our business operations in Russia to humanitarian relief efforts for Ukraine, also noting that the Starbucks Foundation has contributed $500,000 to World Central Kitchen and the Red Cross for humanitarian relief efforts for Ukraine.
Their EMEA business “will continue to work in the market to support people in need through additional financial contributions and service,” he added.
“We condemn the unprovoked, unjust and horrific attacks on Ukraine by Russia, and our hearts go out to all those affected,” he said. “The invasion and humanitarian impact of this war are devastating and create a ripple effect that is felt throughout the world. I know this is weighing emotionally on so many of you, especially those with family and friends in the region.”
In a succeeding letter dated March 8, Johnson said its licensed partner “has agreed to immediately pause store operations and will provide support to the nearly 2,000 partners in Russia who depend on Starbucks for their livelihood.”
The coffee giant has 130 stores in Russia.
