US restaurant chains and drink brands suspend operations in Russia in response to Ukraine invasion
/cloudfront-us-east-1.images.arcpublishing.com/dmn/GHN6CYR6KIEKBA6T6PVKYYP3RY.jpg)
Update: Updated at 9 p.m. with additional actions and responses from Yum Brands, Starbucks, Coca-Cola and PepsiCo.
The Plano-based parent company of KFC and Pizza Hut announced on Tuesday that it was suspending all investment and development in Russia in response to the war in Ukraine, making it one of the first U.S. food chains to take such a measure. Yum Brands then upped the ante, saying it would suspend all operations at company-owned KFC restaurants and all Pizza Hut locations in Russia in partnership with its master franchisee.
Shortly after Yum Brands’ first announcement, several other major US brands announced similar actions, including Starbucks and McDonald’s. The burger chain said it would temporarily close its 850 restaurants in Russia and suspend operations there. The company has faced increasing pressure in recent days to break its silence on the war in Ukraine given its presence in Russia.
In a letter sent to employees and franchisees, McDonald’s CEO Chris Kempczinski said “the situation is extraordinarily difficult” and “there are many considerations” for a global brand like theirs, but the call has been made to close all locations for the time being because they “cannot ignore the unnecessary human suffering taking place in Ukraine”.
Kempczinski’s letter says that despite the closures, McDonald’s will continue to pay all employees in Russia. The company will continue to assess the situation and determine if further action should be taken, he said.
Starbucks CEO Kevin Johnson also sent a letter to employees on Tuesday saying the company would suspend all business activity in Russia. The letter said they would “immediately suspend store operations and provide support to the nearly 2,000 partners in Russia who depend on Starbucks for their livelihoods.”
Drinks brands Coca-Cola and PepsiCo joined the fight against Russia’s invasion of Ukraine and said they were also suspending sales in Russia. PepsiCo will continue to sell “everyday essentials” such as baby formula, baby food and dairy products.
“Given the horrific events in Ukraine, we are announcing the suspension of the sale of Pepsi-Cola and our global beverage brands in Russia,” CEO Ramon Laguarta said in a letter sent to employees. “We will also suspend capital investments and all advertising and promotional activities in Russia.”