October 7, 2022

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Russia - Ukraine.  McDonald's, Starbucks, KFC and Pizza Hut are temporarily closing business in Russia

Russia – Ukraine. McDonald’s, Starbucks, KFC and Pizza Hut are temporarily closing business in Russia

Reuters said, on Tuesday evening, that Starbucks will suspend all commercial activities in Russia, including deliveries and cafe operations. Earlier, McDonald’s announced that it will temporarily close its restaurants in Russia. Yum Brands, owner of the KFC and Pizza Hut chains, has joined the list of companies suspending their activities. According to Reuters, Coca-Cola Co and PepsiCo Inc have also decided to suspend the sale of soft drinks in Russia.

McDonald’s announced that it will continue to pay its employees in Russia. The American chain employs about 62,000 people in this country.

And Reuters pointed out that the closure of the McDonald’s restaurant will also be symbolic. The first Russian restaurant opened in Russia in the center of Moscow in 1990 and became a symbol of the prosperity of American capitalism after the collapse of the Soviet Union. The restaurant symbolizes the meltdown after the Cold War.

“It is impossible to predict when we will be able to reopen our restaurants in Russia,” Chris Kempczynski, CEO of McDonald’s, said in a note sent to the entire company. McDonald’s has nearly 850 points in Russia 84 percent. Company owned. Most of the remaining buildings are operated by the company Rosinter Restaurants Holding in Moscow.

Starbucks has announced that it will suspend all commercial activities in Russia, including shipping its products to coffee shops operated by licensees.

KFC and Pizza Hut in Russia

Reuters also announced on Tuesday that Yum Brands Inc, the parent company of for example the Kentucky Fried Chicken chain, is halting investments in Russia. As the agency noted, Yum has not commented on whether he will try to restrict or suspend the operation of his restaurants in Russia after the country invaded Ukraine.

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Yum has at least 1,000 KFC restaurants and 50 Pizza Hut outlets in Russia. Almost all of them operate as independent franchises. The company said on its website on Monday that it had “discontinued all investments and development of restaurants in Russia while still evaluating additional options.” Reuters stressed that the franchise means Yum does not have complete control over the restaurants “but at the same time is less exposed to financial and operational risks”.

What about Coca-Cola and Pepsi?

According to Reuters information, Coca-Cola and PepsiCo Inc have also decided to suspend the sale of soft drinks in Russia. “The Coca-Cola Company reported that its operations in Russia and Ukraine accounted for approximately 1% to 2% of the company’s net operating income in 2021,” Reuters wrote.

Meanwhile, PepsiCo, whose “cola” was one of the few Western products allowed in the Soviet Union before its collapse, has made it clear that it will continue to sell daily necessities such as milk and other dairy products, infant formula and baby food in Russia. .

Sanctions against Russia

These are other Western companies suspending their activities in Russia. A few days ago, they reported that, among others, the American streaming platform Netflix and the Chinese social network TikTok. In response to Russia’s actions, Walt Disney and Warner Bros. Also its premieres in this country.

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