More than 100 Starbucks outlets across Malaysia have been compelled to close, either temporarily or permanently, as part of a broader international boycott targeting American brands. This development follows a similar fate for KFC just six months prior, amid growing protests against U.S. aid to Israel in light of ongoing conflicts in the region.
The closures come on the heels of a troubling financial report from Starbucks Malaysia, which is linked to the Berjaya Group. The company reported a net loss of RM91.5 million this year, with revenue plummeting by 35% from RM1.1 billion to RM730.3 million.
Sources indicate that the majority of the affected Starbucks outlets are located in major shopping malls and tourist destinations. One source explained, “A temporary closure means that the company is only paying rent for the premises but is not operating until sales pick up.” While MalaysiaNow could not independently verify the closure figures, a preliminary review of the Starbucks website confirmed that at least 60 locations are currently marked as closed or temporarily closed.
In Kuala Lumpur, impacted outlets include those at Kuala Lumpur City Centre, Masjid Jamek, The Weld, and various other prominent locations. In Selangor, closures affect branches at Bangi Gateway, KLIA 2, and Subang Parade, among others. Outlets in Pahang, Johor, Negeri Sembilan, Melaka, Perak, Kedah, and Penang are also included in the list of closures.
Notably, areas in Sarawak and Sabah have seen at least three Starbucks outlets cease operations. Additional closures are anticipated in November, specifically at outlets in Aeon AU2, Datum Jelatek, and Ukay Perdana.
The boycott has impacted not only Starbucks and KFC but also other major Western brands such as McDonald’s and Nestlé, despite efforts by local franchise owners in Muslim-majority countries to distance themselves from U.S. policies in the Middle East. The ongoing violence has resulted in significant civilian casualties, with over 50,000 deaths reported in Gaza and Lebanon since October of last year.
In Malaysia, Starbucks operates under Berjaya Food, part of Berjaya Corporation, which is associated with billionaire Vincent Tan. The corporation also owns the 7-Eleven retail chain, chaired by Farhash Wafa Salvador, a former political aide to Prime Minister Anwar Ibrahim.
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