Business

Starbucks suspends operations in Russia

A woman drinks coffee at Starbucks in a shopping center in Khimki.

Alexander Natruskin | Russia

Starbucks is much less represented in the Russian and Ukrainian markets. The company has about 130 outlets in Russia and Ukraine, according to Bank of America Securities. They are all licensed, so the Seattle company itself does not operate them. Cowen analyst Andrew Charles has calculated that they account for less than 1% of Starbucks’ global revenue.

CEO Kevin Johnson wrote in a letter on Tuesday day that the company will support its nearly 2,000 employees living in Russia. The business suspension includes delivery of Starbucks products and its licensee will temporarily close stores.

In a separate letter released Friday, Johnson condemned the attacks on Ukraine and pledged to donate royalties from his Russian business to humanitarian causes in the beleaguered country.

“We condemn Russia’s unprovoked, unjust and horrific attacks on Ukraine and offer our heartfelt condolences to all those affected,” Johnson wrote in the letter.


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