Breaking: Starbucks Suspends Russian Operations

According to foreign media reports, amid the ongoing war between Russia and Ukraine, McDonald's, Starbucks, PepsiCo and Coca-Cola announced in succession on March 8 that they would suspend all business operations in Russia. McDonald's and Starbucks said they would suspend store operations and commercial activity there.

McDonald's Suspends Operations

Earlier, McDonald's had drawn condemnation and criticism from people in several countries for making no statement when Russia launched its war against Ukraine. Under public pressure, McDonald's issued a statement on March 8: because of the unnecessary human suffering occurring in Ukraine, the company would suspend operations at its 850 McDonald's restaurants in Russia, while saying it "cannot predict" when they might reopen.

After McDonald's announced the suspension, CEO Chris Kempczinski said in an open letter to employees: "The conflict in Ukraine and the humanitarian crisis in Europe have brought unspeakable suffering to innocent people. As a system, we will join the world in condemning aggression and violence and pray for peace." The letter also said the company would continue to pay wages to its 62,000 employees at McDonald's in Russia and had donated $5 million to an employee assistance fund.

Starbucks Follows

After McDonald's issued its statement, Starbucks released one of its own about suspending business and store operations in Russia. Starbucks CEO Kevin Johnson said the company would continue to support Russian employees, but that all stores in Russia would suspend operations and peripheral products would also stop shipping.

Before the March 8 statement, Starbucks CEO Kevin Johnson had published another open letter on March 4, writing that Starbucks condemns Russia's unprovoked, unjust and horrific attacks on Ukraine and expresses sympathy for all affected people. He also pledged to donate royalties from its Russian business to humanitarian causes in the besieged country.

A Small Market Presence

In terms of store count, Starbucks has a very small presence in the Russian and Ukrainian markets. According to Bank of America Securities, the company has approximately 130 stores combined in Russia and Ukraine, with about 2,000 employees. Those roughly 130 stores are all franchised rather than directly operated by Starbucks' US headquarters, meaning they are not run by the US parent company. Foreign market analysts estimate that revenue from these stores accounts for less than 1% of Starbucks' global revenue.

Other Major Companies Act

After McDonald's and Starbucks issued their statements, the Coca-Cola Company also said it would suspend business operations in Russia and would continue to monitor the situation. PepsiCo then announced it would halt capital investments in Russia as well as all advertising and promotional activity.

PepsiCo CEO Ramon Laguarta said in a letter to company employees: "PepsiCo entered the Russian market at the height of the Cold War and helped build common ground between the United States and the Soviet Union. However, given the current situation in Ukraine, we will suspend the sale of all PepsiCo beverage brands in Russia, including 7 Up and Mirinda."

Additional Information

Image source: Internet

FrontStreet Coffee Recommendation

Big chains come and go in the news, but the coffee in your own cupboard is something you can choose deliberately. Entry-level specialty beans are the easiest place to begin. From Ethiopia, FrontStreet Sun-Dried Huakui is known for an intensely tropical aroma — strawberry, passion fruit, jackfruit and honey — with clear sweetness and very little bitterness, while FrontStreet Washed Gotingding Cooperative offers the classic Yirgacheffe profile of jasmine, lemon acidity and berries.

From Brazil, FrontStreet Cerrado Red Bourbon is an affordable, easygoing single origin with cream, peanut and cocoa notes, and FrontStreet Queen's Estate, a rarer Yellow Bourbon grown at higher altitude, layers butter, sunflower seed, macadamia and almond aromas onto a sugarcane-like sweetness that stays thick and smooth whether brewed alone or with milk.

For a rounder, lower-acid cup, FrontStreet Indonesia Lindong Mandheling is Sumatra's G1 grade, wet-hulled and dark roasted, full of brown sugar, spice, herbal, nut and dark chocolate notes. And for the top of that Indonesian range, FrontStreet PWN Golden Mandheling is sorted three times by hand plus once by machine, cutting the defect rate to a minimum for a cleaner, smoother cup with clearer woody and caramel notes.