Starbucks Malaysia Suffers Record Annual Losses as Boycotts Persist
Kuala Lumpur – August 28, 2025 (Qahwa World) – Starbucks’ Malaysia operator, Berjaya Food Berhad, has announced the heaviest losses in its history as customer boycotts linked to the Israel–Gaza conflict continued to weigh on sales and consumer sentiment. The group reported a net loss of RM 292 million ($69 million) for the year ending 30 June 2025, more than triple the losses of the previous year. Fourth-quarter results also reflected the downturn, with losses exceeding RM 185 million ($44 million), the worst quarterly outcome since the company was listed on Bursa Malaysia in 2011.
Revenues were similarly affected, dropping 36% year-on-year to RM 476.77 million ($113 million), while fourth-quarter sales fell 10% to RM 115.9 million ($27.5 million). Berjaya cited the prolonged boycotts as the main reason behind the decline, noting that the shift in consumer behavior has significantly impacted Starbucks and other US-based foodservice brands operating in Malaysia. The group was also compelled to scale back its Starbucks network, reducing its outlets from 408 to 320 stores over the past year, while making impairment provisions on assets due to the downsizing.
The financial damage reflects a wider backlash in Malaysia against American brands, with chains such as McDonald’s, Burger King, and KFC also facing boycotts. The trend has reshaped spending patterns in the majority-Muslim country, where consumer sentiment toward US companies has been severely weakened.
Globally, Starbucks is grappling with similar pressures, recording weaker results in several key markets. The brand has faced revenue declines in Europe and the Middle East alongside falling like-for-like sales across its 17,200 US outlets. Franchise partners have also been hit, with Alsea in Europe reporting five consecutive quarters of falling sales, while Kuwait-based Alshaya Group abandoned plans to sell a minority stake in its Starbucks franchise business earlier this year.
Despite the downturn, Berjaya is moving to diversify and expand. Beyond Starbucks, the group operates Paris Baguette, Kenny Rogers Roasters, and Krispy Kreme in Malaysia, and has been widening its international footprint with new Starbucks licenses in Denmark, Finland, and Iceland, where it opened its first store in July 2025. Berjaya is also looking to grow its Paris Baguette operations, with franchise agreements in place to bring the bakery-café chain to Thailand, Brunei, and the UAE.
