Starbucks is leaving Russia after 15 years in business. The coffee chain had temporarily shut down its stores in March over Russia's invasion of Ukraine.
This is the second major exit of a global American brand from Russia, after McDonald's last week began "de-arching" its entire chain after 32 years.
Starbucks on March 8 suspended all operations of its 130 cafes in Russia, including shipments of coffee and products. On Monday, the company said it "has made the decision to exit and no longer have a brand presence in the [Russian] market."
Starbucks on Monday said it will continue paying its nearly 2,000 employees in Russia for six months and help them find new jobs. The company opened its first Russia-based coffee shop in 2007, in a shopping mall on the outskirts of Moscow.
Unlike McDonald's, Starbucks didn't operate its cafes in Russia, but had a licensing deal. Last Monday, McDonald's said it would sell its entire portfolio of more than 800 restaurants to a major Russian licensee, who will rebrand it and promise jobs to some 62,000 McDonald's employees for two years.
Some Starbucks employees and union leaders allege that the closures are not about safety, but more about breaking up unionization efforts, or the perils associated with too many locations. Starbucks leadership says these problems derive from drug use and threatening behavior, reports the Times.
In Starbucks' corporate response to Russia's invasion/attack on Ukraine, they have decided to cut ties with their market in Russia. McDonald's is another U.S. based company where their corporate also made the decision to cut ties with their Russia market, in response to their attack/invasion to Ukraine.
A restaurateur and rapper duo unveiled Stars Coffee on Thursday, reopening the chain of coffee shops in Russia formerly owned by Starbucks, the latest major company rebranding after a months-long Western corporate exodus from the country.
The clash between the union and Starbucks Corporation, instances of employees' termination, past donations to Israeli companies and accusations of Starbucks funding the Israeli military sparked the boycott.
Starbucks, the coffee chain that has long portrayed itself as an ethical business and fair employer, is being sued by a US consumer group that claims its image is a deception that hides multiple instances of labor and human rights violations in the making of its products.
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