While technology giants like Apple and luxury retailers like Hermès have quickly moved to pause sales or shutter stores in Russia over the invasion of Ukraine, most U.S. food companies and fast-food chains have remained open — and largely silent.
Many large food manufacturers, including PepsiCo and Coca-Cola, and fast-food chains like McDonald’s and Yum Brands are facing growing pressure on social media platforms and from large investors to halt operations in Russia.
Companies “need to consider whether doing business in Russia is worth the risk during this extraordinarily volatile time,” the chief of one big investor, New York state’s pension fund, said on Thursday.
McDonald’s, Coca-Cola, PepsiCo and Mondelez International, the maker of Oreos and Ritz Crackers, did not respond to messages seeking comment about their operations in Russia. Starbucks and Yum Brands, whose chains include KFC and Pizza Hut, have said in response to the invasion that they were supporting humanitarian relief efforts.
But unlike the retailers who have announced that they’re pausing operations in Russia, some fast-food companies do not actually own the restaurants that operate there under their names. In Russia, Starbucks, Papa John’s and Yum Brands chains including KFC and Pizza Hut are mostly run by franchisees, who often have close ties to Russian banks or investors.
Franchise experts say that, depending on the agreements, it is probably up to the franchise owner to decide whether…
