McDonald’s opened a restaurant in Moscow in 1990, just as the Soviet Union’s economy was opening up, and it drew tens of thousands of customers for its burgers and fries. Its closure now carries similar symbolic weight and may have an impact on other businesses.
Burger King, on the other hand, is currently keeping its Russian locations open. It pledged $3 million (£2.3 million) to help Ukrainian refugees and said those fleeing to Europe could get free Whopper meal vouchers.
Restaurant Brands International, which owns Burger King, announced that it would donate profits from its more than 800 franchised locations in Russia to humanitarian causes.
According to the BBC, the company’s Russian outlets are run by franchisees with whom it has “long-standing legal agreements” that are difficult to change at the moment.
McDonald’s CEO Chris Kempczinski stated that it was “impossible to predict” when the company would reopen in Russia. McDonald’s has also temporarily closed its 108 Ukrainian locations.
The countries account for approximately 9% of the firm’s revenue and approximately 2% of global sales.
Companies have been pressed to act as Russian violence against civilians has risen.
Several well-known companies, including Netflix and Levi’s, have already suspended sales or stopped providing services in Russia as a result of severe sanctions imposed by EU and its allies.
Coca-Cola announced on Tuesday that it was ceasing operations in Russia, which accounted for roughly 2% of the company’s operating revenue and income. It also has a roughly 20% stake in a bottling and distribution company in Russia.
“Our hearts go out to the people who are suffering unconscionable consequences as a result of these tragic events in Ukraine,” the company said.
Pepsi, which has a much larger presence in Russia than rival Coca-Cola, announced a halt to the production and sale of Pepsi and other global brands in Russia, as well as a suspension of capital investments and advertising, citing “horrible events” in Ukraine.
However, the company, which began operations in Russia during the Cold War and now employs 20,000 people there, stated that it will continue to provide other products.
“As a food and beverage company, we must remain true to the humanitarian aspect of our business now more than ever,” CEO Ramon Laguarta said. “That means we have a responsibility to continue to offer our other products in Russia, such as milk and other dairy offerings, baby formula, and baby food.”
Starbucks’ plans to cease operations in Russia include halting product shipments.
Kuwait-based Alshaya Group, the coffee chain’s licensee in the country, will continue to pay its approximately 2,000 employees.
