Starbucks And Coca-Cola Join Corporate Boycott By Suspending Operations In Russia
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Starbucks and Coca-Cola have announced they will cease operations in Russia by joining the swelling ranks of corporations boycotting the country following Putin's invasion of neighbouring Ukraine.
It's been a tough day for Russian fast food lovers.
The news came only hours after fast food giant McDonald's revealed they would shut all 850 stores across the country until further notice.
McDonald’s, Starbucks, and Coca-Cola have suspended all operations in Russia. pic.twitter.com/MFtBxx97As— Pop Base (@PopBase) March 9, 2022
Starbucks has about 130 locations across Russia and Ukraine, and employs around 2,000 people.
CEO Kevin Johnson says Starbucks will provide support for their workers, but all shipments of products will cease and all branches will temporarily close.
“We condemn the unprovoked, unjust and horrific attacks on Ukraine by Russia, and our hearts go out to all those affected,” Mr Johnson said.
He condemned the Russia war effort in a letter posted to social media.
Starbucks CEO says company will "suspend all business activity in Russia, including shipment of all Starbucks products." pic.twitter.com/OfmANXSHLo— Anonymous Operations (@AnonOpsSE) March 8, 2022
In a separate letter released last week, Johnson vowed to donate royalties from its Russian business to humanitarian causes in the besieged nation.
“We condemn the unprovoked, unjust and horrific attacks on Ukraine by Russia, and our hearts go out to all those affected,” he said.
Coca-Cola has echoed Starbucks' move and has released a statement similarly condemning the assault on Ukraine.
“Our hearts are with the people who are enduring unconscionable effects from these tragic events in Ukraine,” Coca-Cola said.
“We will continue to monitor and assess the situation as circumstances evolve.”
#BREAKING: McDonald's, Starbucks, Coke, Pepsi are suspending all business in Russia pic.twitter.com/cYeD62rwsZ— 6ixBuzzTV (@6ixbuzztv) March 9, 2022
While Starbucks shuttering stores might not have a major impact on the business - their Russian and Ukrainian stores make up less than one per cent of their global revenue - it is a significant hit for Coca-Cola.
The company has a significant business presence in Russia, including bottling plants.
But they weren't the only symbols of American consumerism to halt trading in Russia this week.
McDonald's revealed they would stop asking Russians 'would you like fries with that' by shutting all their 850 stores until further notice.
Russians waiting in line for McDonald's after they announced they would be closing all 800 locations #Ukraine #UkraineRussianWar #sanctions #Russia pic.twitter.com/3TWabm4zsY— Aidan Brennan 🌏 #StandWithUkraine (@BreAidan) March 9, 2022
As a result, Russians have been sent into fast-food overdrive with lines stretching for nearly a kilometre as McDonalds prepares to close up.
The closures could spell a massive financial hit for McDonald's.
Recent filings revealed that restaurants in Russia and Ukraine contributed 9 per cent of its annual revenue or about $2.8 billion.