Starbucks’ Malaysia operator posts record loss on Gaza conflict
Berjaya Food’s net loss has more than tripled to RM292 million for the financial year
Published Thu, Aug 28, 2025 · 10:30 AM
[SINGAPORE] The operator of Starbucks in Malaysia saw its net loss plunge to a record low as customers shunned the iconic American coffee brand as a form of protest against the Gaza conflict.
Berjaya Food’s net loss more than tripled to RM292 million (S$89 million) for the financial year that ended in June, the company reported. Its revenue fell 36 per cent year on year to RM477 million.
The company attributed the results to “the prolonged impact of the ongoing sentiment related to the Middle East conflict, which affected market dynamics and influenced customers’ spending patterns”, it said in the report.
As a result, Berjaya Food was required to make “the necessary impairment provision” to property, plant and equipment as well as right-of-use assets arising from the downsizing of Starbucks Malaysia’s operations, it added.
The impairments swelled by nearly six times to RM152.8 million, the report showed.
Fast-food brands from the US have seen boycotts intensify since last year due to their perceived links to Israel amid fighting in Gaza.
Starbucks chief executive officer Brian Niccol, during his first visit to the Middle East since becoming CEO last year, said that the boycotts were “not based on anything that’s accurate or true. We have never supported any militaries”. BLOOMBERG
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