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Starbucks has reportedly closed dozens of stores in Malaysia as boycotts put significant pressure on the bottom line.
The American coffee chain, which operates via Berjaya Food in the Southeast Asian country, has temporarily closed 50 out of its 408 stores nationwide, according to The Rakyat Post.
It has faced pressure over alleged connections with Israel and due to it being a flagship American brand.
The US has been a staunch ally of Israel, providing substantial military aid and diplomatic support for their military campaign in Gaza.
Berjaya Food saw a net loss of RM38.2 million for the three months that ended in June, with sales falling by more than half.
“The significantly lower revenue and pre-tax loss incurred in the current quarter under review were mainly due to the current sentiment in relation to the conflict in the Middle East,” Berjaya Food said in the report published at the tail end of August.
Starbucks Malaysia has previously dismissed claims that it is shuttering more than 100 outlets in the country.
The company said in a statement to Business Times that it has ceased only a few stores, and “most of the allegedly closed locations are only temporarily closed”.
This is part of its ongoing assessment to align their presence while ensuring no job losses ensued, said the spokesperson.
“Importantly, no employees have been affected by the permanent or temporary closures, as they have been reassigned to nearby stores to continue serving our customers seamlessly,” the representative said.
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