At a Glance:
- Nestle has announced that it will temporarily halt the import and export of non-essential goods in Russia.
- Mcdonald’s will be closing the 850 outlets in Russia.
- Renowned food brands are temporarily halting the services and operations in Russia.
Since Russia’s invasion of Ukraine, several international brands are halting their services or operations in Russia. Now, food companies and fast-food chain owners are also planning to temporarily close the outlets in Russia. Nestle recently confirmed that the company will be halting the import and export of non-essential goods indefinitely.
Due to the pressure mounting on big companies like McDonald’s and Coca-Cola, the companies have decided to cease their operations in Russia.
McDonald’s halted operations
The American fast-food chain, Mcdonald’s is the only chain to own most of the Russian restaurants. It has become the first major food chain to close its outlets in Russia, effective on March 8th. It will be closing 850 restaurants in the country. This move will cost the chain around $50 million per month and affect their revenue.
McDonald’s officials have stated that it will continue paying salaries to 62,000 Russian employees.
Which other companies join the league?
- Starbucks: Starbucks will be shutting down all 130 cafes in Russia. It will also be halting shipments of all Starbucks products to the country. With this decision, nearly 2,000 employees will be out of jobs.
- Yum! Brands: The parent company of KFC, Pizza Hut, and Taco Bell, Yum! Brands confirmed that it will be closing its operations and outlets across Russia. There are around 1000 KFC outlets across Russia, making it the second-biggest fast-food chain in the country.
- Papa Johns: Though the company cannot suspend the operation of the pizza chain, it has halted the corporate operations in Russia. The company is not receiving any royalties from the outlets in Russia.
Coca-Cola & Pepsi: The two rival brands in the beverage industry have halted their production and sale of products in the country. Although, Pepsi officials stated that some brands will continue to be produced, to support 20,000 Russian associates and 40,000 Russian agricultural workers the company employs.
Do you know? Zenoss and ADCom will manage Coca-Cola Company
