Starbucks joined McDonald’s in announcing a permanent end to its operations in Russia this week, having previously suspended trading in Russia in March. The news comes amid an exodus of Western businesses from Russia, including tech giant Apple and furniture retailer IKEA.
Following Russia’s invasion of Ukraine, Western businesses in Russia have been rushing towards the exit, symbolizing an end to decades of economic, political, and diplomatic cooperation between the nation and the West.
A month after the Russian invasion of Ukraine in February 2022, Starbucks and McDonald’s followed other major global brands in announcing a temporary closure of their businesses in Russia. In scenes reminiscent of the burger chain’s 1990 opening in the country, consumers rushed to McDonald’s restaurants to get a last meal before the closures, despite freezing winter temperatures.
According to CNN, the temporary closure in both Russia and Ukraine cost McDonald’s $127 million, including $100 million for disposed food and inventory, and $27 million to cover staff costs and payments for leases and supplies. The closures affected McDonald’s net income, which fell 28% in the first three months...
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