High street chains face boycott for continuing to trade in Russia
After major companies including Nike, Apple, and IKEA announced the suspension of their operations in the country following its invasion of Ukraine, pressure has been growing on foodservice brands to follow suit. Ukraine’s foreign minister, Dmytro Kuleba, has also called on international companies to freeze or abandon their Russian operations.
Others to face calls to close outlets and stop sales in Russia include Burger King and KFC. Collectively, the quick service chains have thousands of locations across the country.
Any suspension of activities would likely be complex and costly, due to the franchise operating agreements in place with many of these brands.
In recently-published information on its website, McDonald's said that it has 847 stores in Russia, and the country accounts for roughly 9% of its global revenue and 3% of its operating income.
McDonald's first opened in Russia on 31 January 1990, a move that was hailed at the time as a sign of thawing Cold War relations. Interestingly, the majority of the fast food chain's Russia estate is owned and operated by the company rather than franchisees, unlike many other chains.
The group has been criticised on social media in recent days for failing to speak out about the invasion and continuing to operate in the country.
Over the weekend, independent politician John Mann, who sits in the House of Lords, tweeted: “If McDonald's and Starbucks continue to sell in Russia then an international boycott of their products should he instigated.” And yesterday (7 March), the hashtag #BoycottMcDonalds was trending on Twitter.
BigHospitality has contacted McDonald's for comment, but so far the group has not responded.
Starbucks has around 130 locations in Russia, all of which are owned and operated by the Kuwaiti conglomerate Alshaya Group through a licensing agreement.
Last week, Starbucks CEO Kevin Johnson sent a memo to staff condemning Russia’s 'unprovoked, unjust and horrific attacks' on Ukraine.
He said that Starbucks would donate any royalties it receives from its operations in Russia to humanitarian relief efforts in Ukraine.
Yum! Brands has one of the largest footprints in Russia, with more than 1,000 KFC locations and 50 Pizza Huts - all of which are owned and operated by franchisees.
The Daily Mail reports that Yum has said that it is monitoring the situation in Ukraine closely, and that it is making donations to humanitarian relief groups, but that it is too early to discuss the future of its operations in Russia.
