Starbucks Malaysia operator bounces back after two years of boycotts
Berjaya Food Bhd, the Malaysian operator of Starbucks, is showing signs of recovery after nearly two years of boycott-related struggles. The company’s net loss shrank by over half in the first quarter, while revenue grew by 3.3% compared to last year. Despite this improvement, shares remain down by about 25% this year, even after a 2% rise today.
The boycott against Starbucks in Malaysia began due to perceived ties to the Gaza conflict. Over time, public sentiment shifted as consumers recognised that the local franchise is Malaysian-owned and unrelated to the geopolitical issue. This realisation has helped ease the boycott, though analysts caution that a full recovery may still take time.
Berjaya Food’s financial performance is improving, but the road ahead remains uncertain. The company faces ongoing competition from both local and international coffee chains, while geopolitical perceptions continue to influence consumer behaviour. For now, its focus stays on stabilising Starbucks’ position in Malaysia while expanding its Nordic presence.
