Restaurateur Anton Pinskiy officially became a co-owner of Starbucks Corp’s coffee shops in Russia. While this is massive news for Pinskiy, who is continually expanding his business empire in the food industry, others are worried that the legacy of Howard Schultz will be run over by entrepreneurs supporting the war in Ukraine.
As Starbucks Russia is being sold to pro-war entrepreneurs, many are discussing how the move would affect the chain in the country and what changes the new co-owner will implement in the values of the brand.
Pinskiy has long been in the restaurant industry as an owner but does not have any experience running a coffee chain. In fact, in aninterview to Xenia Sobchak, a famous Russian journalist, he admitted that he never even drank coffee.
In Pinsky's team is a Russian rap singer Timati (who has a song devoted to his friendship with Vladimir Putin) and a member of the Federation Council, which approved the Russian invasion of Ukraine. Both of those people have been vocal in their support of the war Russia has declared against Ukraine. In addition, a critic noted that the new owner and his team have been selling Starbucks stores to third parties in different cities across Russia, emphasizing that it is a strange move devaluing the brand.
Pinskiy partnered with rapper Timati to seal the offer and the Sindika holding company. “Judging from the fact that we are now closing the deal, we made just the right offer,” Pinskiy told Forbes on Friday after sealing the deal. The entrepreneur did not elaborate on the details of the transaction but disclosed that he first approached Starbucks in March until finally closing the agreement after a few months.
Timati, born Timur Yunusov, released a song in 2015 called “My Best Friend is Vladimir Putin.” He also set new records on YouTube and has been vocal about using rap music to promote his political stand. Furthermore, Timati has partnered with the Russian army to release a clothing line. However, as the rapper enters a new venture by becoming a co-owner of Starbucks Russia, he is yet to reveal what he can bring to the table with Pinskiy.
Starbucks declined to comment on the story released by Forbes, where Pinskiy freely expressed his stance. However, the global company formally decided to exit and no longer had a brand presence in the Russian market publicly earlier. The exit happened 15 years after Starbucks first entered Russia and opened nearly 130 stores across the country. Until the acquisition of Pinskiy,
Starbucks was operated by its licensee Alshaya Group, which provided opportunities to over 2,000 employees in Russia.
Probably, it was a mistake made in a rush by Alshaya Group, but the thus is it can influence the reputation of the chain and stocks of Starbucks on the global market.
Howard Schultz has long protected the legacy of Starbucks and its chain of stores in Russia for decades. However, as the management is being handed over to pro-war partners Pinskiy and Timati, the company is yet to see what changes will take place and what the future of the brand would look like in the hands of its pro-war leaders.
The Vedomosti Daily also reported that the deal would lead to the rebranding of Starbucks in Russia, and the deal to buy the lease rights for the coffee shops is nearly closing.
