Starbucks’ Malaysian franchise holder Berjaya Foods sees revenue slashed by almost half last year amid pro-Palestine boycott

Starbucks’ Malaysian franchise holder Berjaya Foods sees revenue slashed by almost half last year amid pro-Palestine boycott



According to its 2024 annual report, Berjaya Food operates 408 Starbucks outlets across the country as of June 30, 2024. — Picture By Raymond Manuel

By Malay Mail
Friday, 21 Feb 2025 1:23 PM MYT

• Berjaya Food Bhd reported its fifth consecutive quarterly loss, with a 46 per cent drop in revenue to RM247.3 million for the six months ending December 31, 2024, citing boycotts over the Middle East conflict as the main factor.
• Despite challenges, the group remains focused on expansion and diversification, while founder Tan Sri Vincent Tan’s call to end the Starbucks boycott sparked controversy.

KUALA LUMPUR, Feb 21 — Berjaya Food Bhd reported today its fifth straight quarterly loss, blaming pro-Palestine boycott against American brands as the reasons behind its financial struggles.

The group, which operates the Starbucks and Kenny Rogers franchise in Malaysia, reported a pre-tax loss of RM67.09 million in the six-month period ending December 31, 2024.

Its pre-tax revenue in that period was RM247.3 million — a whopping 46 per cent steep fall from RM461.09 million in the same period the previous year.

“The lower revenue and higher loss from operations in the current quarter under review were mainly attributed to the prolonged impact of the ongoing sentiment related to the Middle East conflict,” it said in its quarterly financial report dated yesterday.

“The lower revenue and pre-tax loss were mainly due to the abovementioned reasons,” it added, referring to performance in the second half of 2024.

Berjaya Food shares opened at 34 sen per unit this morning, its lowest since 34.5 sen per unit in November 18 last year.

“While the Starbucks brand faces challenges, the Group remains committed to growth and diversification by expanding its brand portfolio and leveraging opportunities locally and internationally,” the group said in the report.

According to its 2024 annual report, the group operates 408 Starbucks outlets across the country as of June 30, 2024.

It also operates five stores of French-based Korean bakery chain Paris Baguette, and 70 Kenny Rogers Roasters outlets in Malaysia.

Other brands under the group include soy product chain Joybean, vegan fast food chain Sala, and ice-cream brand Kelava.

In January, Berjaya founder and tycoon Tan Sri Vincent Tan stoked public anger after he was reported telling Malaysians that they should not boycott Starbucks any more after a Gaza ceasefire was brokered between Hamas and Israel.

In October last year, Starbucks Malaysia refuted claims that over 100 of its stores in the country had closed, saying most of its locations were just temporarily closed as part of a strategic review aimed at better aligning the company’s operations and no jobs were lost.