KUALA LUMPUR – Starbucks Malaysia is expected to see better performance in the third quarter of this year following a drop in revenue on the back of boycotts related to the Israel-Palestine war.
Berjaya Group founder Tan Sri Vincent Tan said this in Okinawa, Japan, admitting the impact of boycotts on the coffee chain that “benefit no one”.
“But now at least it is improving and like I said it’s all Malaysian owned, it’s run by Malaysians. It’s just a franchise, it’s not owned by an American,” the New Straits Times reported Tan saying in Okinawa, where he attended a groundbreaking ceremony for a new hotel.
Starbucks in Malaysia is operated by Berjaya Starbucks Coffee Company Sdn Bhd, which is owned by Berjaya Food Bhd.
Berjaya Food reported a net loss of RM42.58 million for the second quarter ended December 31, 2023 against a net profit of RM35.49 million a year earlier.
Israel’s war on Hamas is into its fifth month since October 7 last year after the latter launched several cross-border attacks.
Tan appealed to Malaysians to stop boycotting Starbucks in Malaysia as it would only hurt fellow citizens.
“I think all those who are boycotting Starbucks Malaysia should know that it is a Malaysian-owned company. We don’t even have one foreigner working in the head office.
“In stores, 80% to 85% of employees are Muslims. This boycott doesn’t benefit anyone,” he said.
On February 28, Starbucks Malaysia launched a public relations drive to address the boycott over its alleged links to Israel as an American coffee brand.
It said false statements and misinformation had led to “violence and vandalism” in some stores as well as assault against some employees.
“Starbucks in Malaysia is wholly-owned by a public-listed Malaysian company. With over 5,000 employees across 400 stores, our workforce consists entirely of Malaysians, including individuals with disabilities,” it said. – March 4, 2024