The Big Mac and the Frappuccino will no longer be available in Russia. McDonald’s and Starbucks, but also Coca-Cola and PepsiCo, give in to pressure and threats of boycott and, almost two weeks after the invasion of Ukraine, they announce the suspension of their activities in the country.
“We will continue to monitor the situation and evaluate if further measures are necessary. Right now it is impossible to predict when we will be able to reopen, ”says McDonald’s CEO Chris Kempczincki, announcing the closure of all 850 stores in Russia. “Our values urge us not to ignore the unnecessary human suffering” that is occurring in Ukraine, he adds, stating that the company will still continue to pay its 62,000 employees in the country.
The colossus thus adds to the list that grows day by day of companies fleeing Russia in the face of the invasion of Ukraine. Apple and Nike have already done so, but also the oil giants. And now McDonald’s is also giving in after strong pressure, harshly criticized for having remained silent for a long time. Similar criticisms have also rained down on Coca-Cola, Starbucks, PepsiCo, also forced to run for cover.
“We will continue to monitor and evaluate the situation,” says Coca-Cola announcing the suspension of activities. PepsiCo, in addition to stopping the sales of Pepsi cola and other beverages, also blocks capital investments, advertising and promotional activity while continuing to sell basic products such as milk.
Starbucks reports that its 130 franchised stores have agreed to immediately suspend operations in Russia. Shopify and General Electric are also turning their backs on Moscow, confirming that the flight from Russia does not stop. And how the pressure of social networks and the risk of boycott have scared the big names.
McDonald’s was particularly in the crosshairs of criticism as it controls most of its stores and this makes the top management of the company personally responsible for the choices made. In Russia and Ukraine, the hamburger giant has only 2% of the total of its restaurants, and from these comes 9% of global revenues. A small but not negligible share is the result of years of investments and relationships. When McDonald’s arrived in Moscow, which was then still part of the Soviet Union, in 1990, it became the symbol of the rise of capitalism at the expense of communism. On its first day of operation, an estimated 30,000 Russians had lined up to sample his famous burgers.
The decision to close McDonald’s, Coca-Cola, PepsiCo and Starbucks also brings a sigh of relief to investors, worried about any irreparable damage to reputation if the business continues, but also the growing legal risks and compliance with sanctions and human rights.
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