Starbucks suspends operations at 130 stores in Russia

Starbucks Center in Seattle
Starbucks Center is suspending operations at its Russian coffee shops, the company announced Tuesday.
Anthony Bolante | PSBJ
Joey Thompson
By Joey Thompson – Reporter, Puget Sound Business Journal

Starbucks Corp. (Nasdaq: SBUX) is suspending operations at its 130 coffee shops in Russia in response to the country's invasion of Ukraine, CEO Kevin Johnson announced Tuesday.

The company is also halting shipment of all Starbucks products to Russia.

With the announcement, the Seattle-based coffee giant joins a growing list of consumer-facing companies, such as Alaska Airlines and McDonald's, in pausing operations in the country.

"In times like these, as a company and as partners, we strive to never be a bystander," Johnson said in a letter to staff Friday.

Starbucks opened its first Russian location in 2014. Currently, there are 130 Starbucks stores in the country, all of which are operated by Kuwait-based Alshaya Group. The global franchise operator said it will continue paying its 2,000 workers across those stores.

In addition to pausing operations, Starbucks has pledged to donate its royalties from the Russian stores to humanitarian efforts for Ukraine, and donated $500,000 to World Central Kitchen and the Red Cross.

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