The Muslim world announced a boycott against several food chains and fast food restaurants
A widespread boycott has been launched in the Muslim world against American and Western European brands, such as Starbucks, McDonald’s, Coca-Cola, Pepsi-Cola, Procter & Gamble, and the French Carrefour. The reason behind this is the Gaza war involving Israel, eliciting strong negative reactions from countries in the region. The boycott is primarily spreading among consumers expressing their dissatisfaction with the perceived inaction of the West against Israel.
As reported by Bloomberg, from the Middle East to Pakistan and up to Turkey, Starbucks cafes and McDonald’s restaurants are increasingly empty as locals escalate their anger. In Cairo, Egypt, for instance, previously bustling Starbucks and McDonald’s locations have become deserted. McDonald’s CEO, Chris Kempczinski, warned of a “significant decline” in the company’s performance due to misinformation spreading in the Middle East.
The boycott wave is particularly impactful because it is intense, transnational, and driven mainly by young people who represent a significant base for Western brands. Although the boycott affects sales, planned campaigns, deterrent measures, and political pressure may further intensify the impact on company results.
The consequences of the Israeli-Palestinian conflict have political and social implications for companies, and the business environment is continually evolving in the region. Consumers are increasingly inclined to boycott brands associated with Israeli events, and these trends could pose challenges for companies planning expansion in the region. The process can be closely monitored as companies respond and adapt to the evolving situation in the near future.
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