Boycott intensifies: Malaysian coffee chain profits as locals shun US brands over Gaza war

KUALA LUMPUR – Malaysia’s homegrown coffee chain is under the spotlight after a nationwide call on social media to boycott international brands seen as supporting Israel in its war with Palestinian militant group Hamas.

Many in Muslim-majority Malaysia support the Palestinian cause, with some calling for brands to support local brands instead. Some of the local coffee makers that are well-known and popular for their premium and specialty coffees include ZUS Coffee, Eight Ounce Coffee, Jiji Coffee, Liciamo Coffee, Basque Bear Coffee, and Mukalami Coffee.

“I moved on to Gigi or ZUS. I used to drink Starbucks coffee, my middle name was Starbucks,” said the 50-year-old housewife, who wanted to be known only by her first name Diana. .

“My conscience is better now,” she said.

Since the start of the Israel-Hamas war in October 2023, many Malaysian consumers have been protesting through their wallets. The widespread boycott of consumer brands deemed to be affiliated with the United States or supporting Israel includes coffee franchise Starbucks, KFC, McDonald’s, Domino’s Pizza, Burger King and Nestlé.

The Starbucks coffee chain faces a decline in customer traffic and is one of the main targets of boycotts after suing a labor union in the US state of Iowa over social media posts supporting Palestine. They took a hit in the second half. . Starbucks stores in Malaysia used to be packed, but now they are mostly quiet.

With over 400 stores across Malaysia, Starbucks is one of the country’s largest and most well-known coffee chains.

“My local Starbucks used to have a lot of people. Now it’s barely there,” says owner Ivy Simon, 45, who has replaced local coffee shops with a huge boom. He added that there is.

“I wanted to go to a local coffee shop for breakfast the other day, but it was full,” she added.

Rafiza Amran, owner-manager of Mukalami Coffee, said she has noticed a significant spike in sales since late November 2023.

“We believe this is a direct response to the ongoing conflict in the Middle East,” she told The Straits Times.

Mukalami Coffee has seen a 15-20 per cent increase in daily sales across all its stores in Selangor.

“This growth is notable given there have been no major changes to our marketing strategy or menu offerings. It clearly shows that it reflects the

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