Why people are boycotting Starbucks: over $15 million lost in 6 months
The coffee chain has posted catastrophic losses in Malaysia after recent boycotts.
Coffee chain Starbucks has posted losses of $15.1 million over the last six months after boycotts of US fast food brands over America’s support of Israel’s offensive in Gaza.
Starbucks' Malaysian operator, Berjaya Food, revealed a loss of 67 million Malaysian ringgit, their fifth straight quarterly loss, dropping 46% compared to the same timeframe in the previous year.
The company wrote in its quarterly report that “while the Starbucks brand faces challenges, the group remains committed to growth and diversification by expanding its brand portfolio and leveraging opportunities locally and internationally.”
“Starbucks' Malaysian franchise holder, Berjaya Food Bhd, reported a net loss of RM70.3 million ($15.1 million) over the last six months of 2024, marking its fifth consecutive quarterly loss. This downturn is primarily attributed to prolonged boycotts of U.S. brands in response… https://t.co/3dIMybU4KI
— Joe Haslam ☘ 🇪🇺 (@joehas) February 22, 2025
“The lower revenue and higher loss from operations in the current quarter under review were mainly attributed to the prolonged impact of the ongoing sentiment related to the Middle East conflict“, it added.
Israel currently faces a genocide case at the International Court of Justice over its actions in the region, with Reuters reporting that “the ground and air campaign in Gaza has killed more than 46,600 people, with just over half of identified victims being women, children or older people." It adds that “the numbers do not necessarily reflect all victims” as “many are still under rubble” in the now almost entirely flattened region.
As well as the boycott of the 408 Malaysia outlets, Saudi Arabia’s Public Investment Fund (PIF) has slashed its US equity holdings by 42 percent to $20.6 billion, including its stake in Starbucks, for the same reason.
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