Malaysia’s Starbucks operator posts US$8.8 million loss due to anti-Israel boycott

Fast food brands from the US have been facing challenges in Asia, the Middle East and some parts of Europe amid calls to boycott the brands due to their perceived links to Israel. McDonald’s, for instance, became a target of boycotts after photos and videos on social media showed its stores in Israel giving meals to the nation’s soldiers following the October 7 attack.

Berjaya Food reported a net loss of 91.5 million ringgit and a 35 per cent drop in revenue for its full-year period that ended in June. In addition to the Middle East conflict, it also attributed the poor performance to a one-off loss from the disposal of its entire equity interest in Jollibean Foods Pte Ltd. in November.

Berjaya had 393 Starbucks stores across Malaysia as of June 2023, its latest available annual report shows. It runs restaurants under the Kenny Rogers Roasters brand, as well as cafes under the Paris Baguette brand.

The company’s shares declined 13 per cent on Wednesday and were set for their lowest level since February 2022.