Starbucks becomes latest chain to quit Russian market

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Starbucks has become the latest Western hospitality chain to completely pull out of the Russian market in response to the war in Ukraine.

The group, which was one of a number of operators to pause business in Russia back in March following the county's invasion of Ukraine, said yesterday (23 May) that it had 'made the decision to exit and no longer have a brand presence' in the country - ending 15 years of trading there.

Starbucks entered the Russian market in 2007 and had grown to include 130 coffee shops, all of which are owned and operated by the Kuwaiti conglomerate Alshaya Group through a licensing agreement.

The coffee giant has 2,000 employees in Russia, and has said it will support them in transitioning 'to new opportunities outside of Starbucks'. It has also said it will continue to pay all staff in the country for six months.

It did not publish any information on the financial impact of its decision.

Starbucks' decision to permanently leave the Russian market comes after fast food giant McDonald's agreed a deal last week to sell its estate of 847 sites in Russia to a local franchisee, allowing it to exit the country.

Meanwhile, Yum Brands, which owns Pizza Hut and KFC and has one of the largest footprints in Russia, has said it was also in the process of transferring its restaurants to a local operator, according to the Financial Times