Starbucks to exit Russia after nearly 15 years

(Reuters) -Starbucks Corp stated on Monday it’ll exit the Russian market after almost 15 years because the espresso chain joins McDonald’s Corp in marking the top of the presence of a few of the prime Western manufacturers within the nation.

Seattle-based Starbucks has 130 shops in Russia, operated by its licensee Alshaya Group, with almost 2,000 staff within the nation.

Starbucks’ choice to wind down its operation in Russia is completely different to the method another overseas corporations have taken.

McDonald’s final week stated it was promoting its eating places in Russia to its native licensee Alexander Govor to be rebranded below a brand new identify, however will retain its logos, whereas France’s Renault is promoting its majority stake in Russia’s largest carmaker with an choice to purchase again the stake.

A slew of different Western corporations, together with Imperial Manufacturers and Shell, are reducing ties with the Russia market by agreeing to promote their belongings within the nation or handing them over to native managers.

In March, Starbucks shuttered its shops and suspended all enterprise exercise in Russia, together with the cargo of its merchandise to the nation, following Moscow’s invasion of Ukraine.

The corporate, which opened its first outlet in Russia in 2007, stated it’ll proceed to assist its staff there, together with paying them for six months.

Starbucks didn’t present particulars on the monetary affect of the exit. McDonald’s had stated it will take a primarily non-cash cost of as much as $1.4 billion.

UPDATE 4-McDonald’s to promote Russia eating places to native operator, rebrand – Reuters Information’Golden Arches’ come down close to Moscow as McDonald’s Russia rebrand begins – Reuters NewsFACTBOX-Corporations promote their companies in Russia – Reuters NewsFACTBOX-The Nice Rebrand: Western enterprise reborn in Russia below new names – Reuters NewsFACTBOX -Corporations rely the price of ditching Russia – Reuters Information

(Reporting by Deborah Sophia in Bengaluru; Enhancing by Louise Heavens and Shounak Dasgupta)