UK babywear chain and Yum! are latest firms to make such a decision after invasion of Ukraine
- McDonald’s, Starbucks and more suspend Russian operations
- Russia-Ukraine war: latest updates
The owner of KFC and Pizza Hut, along with the UK babywear chain Mothercare, have become the latest companies to pause business in Russia following its invasion of Ukraine.
After a number of major western brands, including McDonald’s, Starbucks, Coca-Cola and PepsiCo, bowed to public pressure and suspended operations in Russia, the Kentucky-based Yum! Brands followed suit.
It said it was suspending KFC company-owned restaurants in Russia and finalising an agreement to suspend all 50 Pizza Hut outlets in partnership with its master franchisee. Yum! has 1,000 KFC restaurants in Russia, most of which are run by franchisees.
The company had already previously suspended all investment and restaurant development in Russia, and said it would donate all profits from its Russian operations to humanitarian efforts, including a $1m (£762,000) donation to the Red Cross to help those affected by the war, and activating its disaster relief fund to support Ukrainian franchise employees.
Mothercare has announced that all business in Russia, including shipment of all products, has been suspended. Its local partner has confirmed that it will be immediately pausing operations in 120 Mothercare stores and online. Russia accounts for 20-25% of Mothercare’s worldwide retail sales and was previously expected to contribute about £500,000 a month to group profit.
The fast food firm McDonald’s is also temporarily suspending operations at its 850 locations in Russia. The company – which opened its first Russian branch in Pushkin Square in Moscow on 31 January 1990, when an estimated 38,000 Soviets lined up for hours to taste the Big Mac, a symbol of American capitalism – said it would continue to pay its 62,000 Russia-based employees.
The Chicago-based company, which owns 84% of its stores in Russia, could take a big financial hit because of the closures because its restaurants in Russia and Ukraine normally contribute 9% of annual revenues, or about $2bn.
A host of other consumer brands including Netflix, Levi’s, Burberry, Ikea and Unilever, the owner of Marmite and Ben & Jerry’s, have halted business in Russia, while professional services firms including KPMG, PwC, EY and Deloitte have also cut off businesses in the country and its ally Belarus.
Ukraine’s foreign minister, Dmytro Kuleba, told CNN two days ago that “all western companies must withdraw from Russia” on humanitarian grounds. “We were upset to hear companies like Coca-Cola and McDonald’s remain in Russia and continue providing their products,” he said.
There had been calls for consumer boycotts of McDonald’s and Coca-Cola on social media, from public figures including the American actor Sean Penn and the UK Dragons’ Den investor Deborah Meaden.
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