Berjaya Food Bhd. has reported its fifth consecutive quarterly loss, primarily attributed to the impact of boycotts against U.S. fast food brands following America’s support for Israel’s actions in Gaza, which began last year. The company recorded a net loss of 70.3 million ringgit for the six-month period ending in December. As of June 30, 2024, Berjaya operated 408 Starbucks cafes in Malaysia, although it does not disclose specific revenue figures for its Starbucks operations. Following this news, Berjaya Food’s shares dropped 2.9%, reaching their lowest point since November 19.
Despite the challenges facing the Starbucks brand, Berjaya remains focused on growth and diversification, aiming to expand its brand portfolio and capitalize on local and international opportunities. The company anticipates that its strategic initiatives for Starbucks will improve performance and yield positive outcomes. In January, Berjaya’s founder, Vincent Tan, stated that there was no reason to continue the Starbucks boycott after the ceasefire in Gaza, emphasizing that such actions do not impact Israel.
In addition to Starbucks, Berjaya also manages the Kenny Rogers Roasters chain in Malaysia and the Paris Baguette brand in the Philippines. The company believes it is well-positioned for future growth and improved financial results. Some customers have criticized Starbucks for not exerting enough pressure on Israel to cease its military actions in Gaza. In response, Starbucks CEO Brian Niccol, during his first visit to the Middle East since taking the helm in September, asserted that the boycotts are based on misinformation, stating, “We’ve never supported any militaries.