Starbucks’ Malaysian operator, Berjaya Food Bhd, has posted a staggering net loss of RM292 million for the financial year ending June, more than tripling from last year, as widespread consumer boycotts in response to Israel’s ongoing aggression in Gaza continue to impact the company.

According to Bloomberg, the company’s revenue fell 36% year-on-year to RM477 million, with Berjaya Food Bhd citing “the prolonged impact of the ongoing sentiment related to the Middle East conflict, which affected market dynamics and influenced customers’ spending patterns.” The downsizing of Starbucks outlets also triggered impairment charges on stores, equipment, and right-of-use assets, which surged nearly six-fold to RM152.8 million.

The financial setbacks reflect the growing strength of public solidarity with Palestinians, as Malaysian and Indonesian consumers increasingly avoid multinational brands linked—directly or indirectly—with Israel’s military and occupation policies. US-based chains including Starbucks, KFC, and Pizza Hut have all faced declining sales amid the boycotts, signaling the power of grassroots activism and ethical consumer choices.

While Starbucks CEO Brian Niccol denied the company’s involvement in the conflict, insisting that claims of supporting Israel “were not based on anything that’s accurate or true,” the ongoing financial losses underscore the reputational and economic consequences for corporations perceived to profit from or enable Israeli actions in Gaza.

Activists view the downturn as a clear message to international corporations: complicity, even indirect, in human rights violations will not go unnoticed. The boycott movement continues to grow, highlighting the global demand for accountability and justice for the Palestinian people. (ILKHA)