Apart from McDonald’s, Starbucks is one of the global brands that has been significantly affected by the ongoing boycott. It’s even gotten to a point where protestors would vandalise the outlets to show their solidarity with the people of Palestine.
It appears that the boycott affecting the brands more than we thought. According to reports online, over 100 Starbucks outlets in Malaysia have been forced to shut down their operations, either permanently or temporarily. Here are the details:
Starbucks Malaysia, operated by the Berjaya Group, reported a net loss of RM91.5 million this year and has been closing outlets across the nation due to the financial crisis, six months after a similar fate befell KFC. According to the report, the ongoing boycott has impacted many of the coffee brand’s strategically located stores in shopping centres and popular tourist spots, forcing them to cease operations.
“A temporary closure means that the company is only paying rent for the premises but is not operating until sales pick up,” the source said. The growing popularity of local brands such as ZUS Coffee may have also contributed to the closures of Starbucks outlets, as Malaysians increasingly seek alternatives to any global brands that have explicitly or implicitly shown support for the ongoing genocide in Palestine. Speaking of ZUS Coffee, according to a report by Allegra World Coffee Portal, the local establishment has surpassed Starbucks as the most popular coffee brand in Malaysia with over 478 outlets nationwide.
However, it’s been confirmed that these claims are false. According to MalayMail, a spokesperson from Starbucks told BusinessTimes that the reports of over 100 outlet closures are incorrect. “The claim that more than 100 Starbucks outlets in Malaysia have been shut down is false. While we have ceased operations at only a few stores, most of the allegedly closed locations are only temporarily closed,” the representative said. As for the reason for the temporary closures, the spokesperson clarified that it’s part of the strategic review that aims to better align the company’s activities and reassured no employees had been terminated, only simply relocated to other outlets.
For a full list of which outlets are marked “temporarily closed”, you can visit the official Starbucks Malaysia website.
Sources: MalaysiaNow, Starbucks
