West Asian chains profit from regional boycott of western brands

News Desk - The Cradle 

US corporations have seen losses of up to $11 billion as a result of pro-Palestine boycotts

Consumers in West Asia are increasingly turning their backs on foreign brands that profit off or support Israel’s ethnic cleansing campaign in Gaza, according to a report by Bloomberg on 26 January.  

“Me and my friends, we used to go to Starbucks all the time, now it’s a shame if you’re seen at one of those,” 19-year-old university student Nayera Ahmed told the New York-based business news outlet. “It’s the least we can do. Why would I buy from these Western companies?”

The boycott has spread far beyond West Asia from Far East Asia to the Americas; shoppers all around are ensuring that their money is not going towards funding Israel’s bombing of Gaza.

Starbucks and McDonald’s locations in Cairo have been deserted by patrons due to the widespread boycott. Both businesses have seen significant losses since the start of the war.  

McDonald’s CEO Chris Kempczinski said the company has seen a “meaningful business impact” in West Asia and other markets. In the case of Starbucks, the company recorded an $11 billion loss in the final quarter of last year.  

Shares of Americana Restaurants International Plc, West Asia’s franchise operator for KFC, Pizza Hut, Krispy Kreme, and Hardee’s, have recorded losses of up to 27 percent on the Saudi stock exchange.

Local chains are profiting from the boycotts of foreign goods. The founder of Astrolabe, a Jordanian coffee chain, Moath Fuari, said that the boycotts have allowed him to earn a profit increase of up to 30 percent at some locations.  

Spiro Spathis, a century-old soda brand in Egypt struggling to survive before the war, says its sales increased tremendously over the past three months, per its commercial director, Youssef Atwan.  

“Suddenly, we were bombarded with orders from supermarkets and restaurants; we were trying hard to cope with the demand,” Atwan said. “Clients would go to restaurants and either ask for our brand or at least refuse to drink those on the boycott list.” 

“We need to target companies that play a clear and direct role in Israel’s crimes, and where there is real potential for winning," the Boycott, Divestment, and Sanctions (BDS) movement said in a report earlier this month.  The group had previously succeeded in boycotting cases that took Large companies, such as Ben & Jerry’s, in ending licenses in Israel.