McDonald's, Starbucks, Coke, Pepsi join companies suspending business in Russia - Action News
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McDonald's, Starbucks, Coke, Pepsi join companies suspending business in Russia

Following pressure on social media, McDonald's, Starbucks, Coca-Cola and Pepsi are the latest companies suspending business in Russia to protest the country's invasion of Ukraine.

There are growing calls to boycott companies not taking a stand against Russia

The logo of a McDonald's Corp restaurant.
Multinational companies, including McDonald's, are facing pressure to take a stand on the Russian invasion of Ukraine by ceasing business operations in Russia. (Lucy Nicholson/Reuters)

McDonald's, Starbucks, Coca-Cola and PepsiCoare the latest multinational companiesto announce they'repausing business operations in Russia to protest the country's invasion of Ukraine.

Over the past several days, theU.S.-based companieshave faced mountingpressure on social media to cut ties with Russia due to their large footprint in the country.

On Tuesday, McDonald's announced in a statementthat it will temporarily close its more than 800 restaurants and pause all operations in Russia. The fast foodchain said it will continue to pay salaries of the 62,000 Russian employees who will be affected by the closure.

"The conflict in Ukraine and the humanitarian crisis in Europe has caused unspeakable suffering to innocent people," said CEOChris Kempczinski. "Wejoin the world in condemning aggression and violence and praying for peace."

Starbucksinitially denouncedRussia's attack of Ukraine, but made no move to shutter its130 stores in the countrythat are owned and operated by a licensed partner.

However, on Tuesday, a few hours after McDonalds' announcement, StarbucksCEOKevin Johnson stated online that the coffee chain will suspend all business operations in Russia.

Starbucks announced Tuesday it will close all stores and suspend business operations in Russia. (Starbucks/Nicholas Matthews Photography)

Coca-Cola and PepsiCo were initially silent about theirplans, but late Tuesday afternoon,Coca-Cola announced it would suspend all operations in Russia, while PepsiCo said it would stop making a number of products.

"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," said PepsiCo CEORamon Laguartain a statement.

He said the company will continue manufacturing otherproducts, including essentials such as milk,baby formula and baby food.

The companies joinmore than 300 businesses thathave curtailed their Russian operations,according to a report by Jeffrey Sonnenfeld, a management professor at Yale University.

Those companies include Ikea, Apple, H&M, Canada Goose,Visa and Mastercard.

Canadian companies,convenience store chain Couche-Tard, ande-commerce platformShopify also announced this week that they're suspending business dealings in Russia.

Companies still in Russia

Sonnenfeld has identified more than 35companies that still have "significant exposure" in Russia. A number of those businesses, such as Burger King, KFC and Nestlhave become targets on social media where they facecalls forboycotts.

McDonald's, Starbucks,Coca-Cola andPepsiCo werealso a target, but the backlash they havefaced should now come to an end as they halt operations in the country.

Sherry Zak of Halifax is calling on multinational companies to stop doing business in Russia. (submitted by Sherry Zak)

Sherry Zak of Halifax said she has reached out to several targetedcompanies on social media and sometimes by personal email to demand they pull out of Russia.

Zak, who is of Ukrainian descent, said she felt she had to take action to protestRussia's war on Ukraine.

"My husband and I were watching the news with tears in our eyes," she said. "It's just heartbreaking. We're just trying to make a change, make some change, make it stop."

Companies respond

Nestldid not respond to requests for comment about its position in Russia.

Burger King's owner, Toronto-based Restaurant Brands International (RBI), said it has 800 Burger Kings in Russia, each owned and operated by local franchisees.

"We support the sanctions [targeting Russia] that have been put in place by the U.S., EU, Canada and other countries and will insist that our franchisees in Russia abide by those as well," said RBI spokesperson Leslie Walshin an email.

RBI also said it isredirecting profits from operations in Russia to humanitarian efforts in Ukraine.

Yum! Brands saidit's finalizing an agreement to close its 50 Pizza Huts in Russiaand will suspendoperations of its 70 company-owned KFCs in the country. The remaining 930 KFCsoperated by independent owners will remain open.

Yum! Brands also said it isredirecting profitsto humanitarian efforts.

WATCH | Major brands suspend operations in Russia:

Major brands suspending business in Russia

3 years ago
Duration 1:59
McDonalds, Coca-Cola and Starbucks are among a long list of multinational companies that have suspended operations in Russia. Big brands have faced mounting public pressure to sever ties with the country over its war in Ukraine.

Business professor Ian Lee said companieskeeping any ties with Russia right now will continue to be judged harshly by peoplearound the world.

"They cannot be associated in any way, shape, or form with the Russian regime, and that's why they've got to leave," said Lee, a professor at Carleton University in Ottawa.

"Those Western companies that remain are committing are making an enormous strategic mistake, because they will be seen increasingly in the court of public opinionto be completely insensitive."