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Why Is There No Starbucks in Ukraine?

There are 130 Starbucks outlets in Russia and Ukraine, but only one operates under the company’s brand. Analysts estimate that this country represents less than 1% of Starbucks’ total revenue. This situation has forced the company to consider a temporary shuttering of the stores. But it doesn’t look like the coffee chain will give up on the country. It’s not hard to imagine why Ukraine would be a viable market for its coffee chain.

The decision to suspend business in Russia comes after the U.S. company Nestle announced plans to distribute its products around the world. The announcement came after Kyiv Mayor Vitali Klitschko promised to bring a Starbucks to the Ukrainian capital by 2018. However, Starbucks did not reveal whether it would open a location in the capital city. Despite the city’s enthusiasm, the company has no plans to open a store in Ukraine. Local analysts Yulia Kovaliv told the news agency that the market was too small for the company to operate.

Coffee is a very important part of Ukrainian culture. The coffee chain is a big American multinational, and Ukraine has only one out of every eight Starbucks locations in Europe. In fact, the country has more than 4,000 coffee stores. The company has also opened a coffeehouse in Moscow, where it has become a popular destination. However, no Starbucks has opened its doors in the Baltic States. If this is true, the Ukraine isn’t the only country lacking in this industry.