US F&B chains in Malaysia still face boycott over Gaza

Bottom lines hit as outlets like Starbucks, KFC are targeted by Muslim consumers

- Hazlin Hassan

Outlets of coffee chain Starbucks and fast-food chains that originated in the United States have remained mostly empty in Malaysia due to a Muslim consumer boycott sparked by the Gaza war.

But workers at one KFC and two McDonald's outlets said they are seeing a steady trickle of returning customers in the past two months, as the Israel-Hamas war entered its sixth month. The US is Israel's staunchest ally in its war against Hamas.

The boycott sentiment has generally remained strong among Malaysian Muslims against American fast-food outlets, which also include Subway, Burger King and Pizza Hut.

Many of these US brands have faced similar boycotts in other parts of the Muslim world since October 2023, as they are perceived to support Israel or have ties with the country, amid a war that has killed more than 33,000 Palestinians in Gaza.

While the Gaza-linked boycott in Malaysia is low-key - unlike the prominent boycott of KK Super Mart convenience stores over the sale of socks bearing the word "Allah" that has sparked controversy led by vocal Umno Youth - it has hurt the bottom lines of the food and beverage companies targeted.

Kuala Lumpur-listed Berjaya Food, which owns 400 Starbucks stores in Malaysia, reported a net loss of RM42.6 million (S$12.1 million) from October to December 2023, compared with a net profit of RM35.5 million in the same quarter the year before.