Starbucks has reportedly closed dozens of stores in Malaysia, amid the ongoing widespread boycott of pro-Israeli brands and products throughout the country and the wider international community.
According to the Malaysian news outlet, The Rakyat Post, Starbucks has temporarily closed 50 out of its 408 stores nationwide. Although the reason for those closures were not directly acknowledged to be caused by the widespread anti-Israel boycott maintained by many Malaysians throughout the past year, it was admitted that the decision is linked with Israel’s ongoing offensive on the Gaza Strip.
In its report published at the end of August, the company, Berjaya Food – which the popular American coffee chain operates under across Malaysia – stated that the “significantly lower revenue and pre-tax loss incurred in the current quarter under review were mainly due to the current sentiment in relation to the conflict in the Middle East”.
Berjaya Food reportedly saw a net loss of RM38.2 million ($8.6 million) for the three months ending in June, with sales having fallen by more than half, as well as a $20.5 million net loss throughout that whole year ending in June.
Despite the link between those losses and the conflict in the Middle East, the company told the outlet, The Business Times, back in August that it closed only a few stores and that “most of the allegedly closed locations are only temporarily closed”.
It also said that the decisions were part of its ongoing assessment to simply cut down costs while ensuring no job losses took place. “Importantly, no employees have been affected by the permanent or temporary closures, as they have been reassigned to nearby stores to continue serving our customers seamlessly,” it stated at the time.
Read: KFC faces battering over Palestine in Malaysia, over 100 units shut