Starbucks is suspending all business activities in Russia, including deliveries and coffee shop operations, the Reuters Agency said on Tuesday evening. Earlier, McDonald’s announced that it would temporarily close its restaurants in Russia. Yum Brands, the owner of the KFC and Pizza Hut chains, has joined the list of companies that suspend their activities. According to Reuters, Coca-Cola Co and PepsiCo Inc also decided to suspend the sale of their carbonated drinks in Russia.
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McDonald’s has announced that it will continue to pay salaries to its employees in Russia. The American chain employs about 62,000 people in this country.
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The Reuters agency pointed out that the closing of the McDonald’s restaurant will also be symbolic. The first restaurant in Russia opened in Russia in the center of Moscow in 1990 and became a symbol of the flourishing American capitalism after the collapse of the Soviet Union. The restaurant symbolized the thaw after the Cold War.
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“It is impossible to predict when we will be able to reopen our restaurants in Russia,” said Chris Kempczinski, CEO of McDonald’s in a note sent to the entire company. McDonald’s has almost 850 points in Russia, 84 percent. is owned by the company. Most of the remaining premises are run by the Moscow franchisee, Rosinter Restaurants Holding.
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Starbucks has announced that it is suspending all business activities in Russia, including shipping its products to licensee-operated coffee shops.
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KFC and Pizza Hut in Russia
The Reuters agency also announced on Tuesday that Yum Brands Inc, the parent company of e.g. KFC chain, suspends investments in Russia. As noted by the agency, Yum did not comment on whether he would try to limit or suspend the operation of his restaurants in Russia after the country’s invasion of Ukraine.
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Yum has at least 1,000 KFC and 50 Pizza Hut outlets in Russia. Almost all of them operate as independent franchises. The company said on Monday on its website that it “has suspended all investment and restaurant development in Russia while still evaluating additional options.” The franchise business means that Yum does not have full control over the restaurants, “but at the same time it is less exposed to financial and operational risks,” Reuters stressed.
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What about Coca-Cola and Pepsi
According to Reuters information, Coca-Cola Co and PepsiCo Inc also decided to suspend the sale of their carbonated drinks in Russia. “Coca-Cola reported that its operations in Russia and Ukraine accounted for approximately 1% to 2% of the company’s net operating income in 2021,” wrote Reuters.
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Meanwhile, PepsiCo, whose “colas” was one of the few Western products allowed in the Soviet Union before its collapse, explained that it would continue to sell everyday essentials such as milk and other dairy products, infant formula and baby food in Russia. babies.
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Sanctions against Russia
These are another Western companies that are suspending their activities in Russia. A few days ago, they informed about it, among others American streaming platform Netflix and Chinese social network TikTok. In response to Russia’s actions, the Walt Disney Company and Warner Bros. also suspended their premieres in this country.
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photo-source">Main photo source: Deman / Shutterstock.com
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