McDonald’s CEO Chris Kempczinski stated that McDonald’s would cease its operations throughout Russia. He also said that the company would continue to pay the salaries of 62,000 workers it hires in the country .
McDonald, a Chicago-based firm that is the owner of eighty percent of the outlets in Russia which could be hit with huge financial losses as a result of the closings. In the latest regulatory report, McDonald has said its restaurants in Russia and Ukraine made up 9 percent of its total revenues, which is around $2bn.
“We serve millions of Russian customers each day who count on McDonald’s,” McDonald’s CEO Chris Kempczinski said in a statement. “At at the same time, we believe that our principles make it impossible to ignore the plight of humanity that is unfolding in Ukraine. Kempczinski declared. “At this juncture, it’s impossible to predict when we might be able to reopen our restaurants in Russia.”
“The violence within Ukraine along with the human rights crisis that is sweeping across Europe is a tragedy that has brought immense suffering to innocents. As a society we are united with all of the globe in condemning violence and violence and pleading to bring peace” Kempckinski added.
Starbucks has also said it was suspending any business activities in Russia including the shipping of its goods and cafes that are licensed.
The company also said that it was based in Kuwait. Alshaya Group, which operates at around 100 Starbucks cafes, will continue to provide support to its 2,000 employees located in Russia “who depend on Starbucks for their livelihood”.
Coca-Cola and PepsiCo:
Coca-Cola Co later said it had suspended its operations in Russia. Pepsi was also on the same page with a statement that sales of their brands, its capital investment as well as all advertising would be halted in Russia and it would be supporting “our 20,000 Russian associates and the 40,000 Russian agricultural workers in our supply chain”. The company also said it would continue to offer daily necessities like milk and other dairy products, including baby formula, as well as baby food in Russia.
“Pepsi-Cola entered the market at the height of the Cold War and helped create common ground between the United States and the Soviet Union,” CEO Ramon Laguarta said in an initial letter sent to employees of the business. “However, given the horrific events occurring in Ukraine, we are announcing the suspension of the sale of Pepsi-Cola, and our global beverage brands in Russia, including 7Up and Mirinda.”