Starbucks Malaysia Sees Early Signs of Recovery After Boycott Slump

KUALA LUMPUR — Starbucks’ Malaysian operator, Berjaya Food Bhd, says business is beginning to stabilise after nearly two years of boycott-driven setbacks linked to the Gaza conflict. Chief executive Sydney Lawrance Quays told Bloomberg that the rebound remains slow but visible, with recent financials reflecting early progress.

Berjaya Food’s first-quarter results showed its net loss narrowing to RM14.8 million, more than 50 per cent lower year-on-year, while revenue grew 3.3 per cent. This improvement follows a record RM292 million full-year loss as boycotts targeting Western brands triggered steep declines in sales and forced store closures.

Starbucks Malaysia

Quays said the backlash has eased as more Malaysians understand Starbucks Malaysia is locally owned. The chain’s workforce is predominantly Muslim, a point he highlighted to counter persistent online allegations.

Still, the fallout reshaped the market. Berjaya Food reduced its Starbucks network from 400 to 320 outlets, losing its long-held lead to fast-expanding local rival Zuspresso. New China-based chains are intensifying price competition.

Analysts caution that recovery may remain uneven given lingering geopolitical sentiment and rising competition. Berjaya Food is also expanding abroad, with plans for a third Starbucks store in Iceland. Shares rose 2 per cent but remain down 25 per cent this year.

Business News