Starbucks has closed 50 stores in Malaysia amid declining revenue, a direct result of a widespread boycott against several international brands perceived as supporting Israel.
The popular American coffee chain operates 408 stores across the country, with dozens now shut down, though the company has not explicitly stated the reason behind the closures.
Berjaya Food, which manages Starbucks’ operations in Malaysia, reported in August that the ongoing Middle Eastern conflict had indirectly impacted sales. The company highlighted “significantly lower revenue and pre-tax losses” in the current quarter, citing the boycott as a contributing factor.
According to Berjaya Food’s financial report, the company experienced a net loss of RM38.2 million (approximately $8.6 million) in the three months leading up to June, and a total net loss of $20.5 million for the financial year ending in June.
The financial difficulties led to the closure of several stores in August, and the total number of closures has now reached 50. To mitigate the impact on staff, affected employees have been reassigned to nearby outlets.
In addition to the closures in Malaysia, Starbucks has reported a 7 percent reduction in global sales for the July-September quarter, marking its third consecutive quarter of decline. For the full fiscal year, comparable store sales dropped by 2 percent, and earnings per share decreased by 25 percent to 80 cents. Consolidated net revenues fell by 3 percent to $9.1 billion for the 52 weeks ending September 29.
