Gaza boycotts losing steam as Starbucks, McDonald’s, KFC rebound in Middle East
Boycotts against Western brands over US support for Israel’s military operation in Gaza could be easing after more than a year of lost sales in the Middle East.
Starbucks plans to open about 500 new locations and add 5,000 jobs in the Middle East over the next five years in the latest sign that the tide could be turning for Western brands battered by boycotts in the Middle East.
The coffee giant’s CEO, Brian Niccol, spoke about the expansion plans in an interview with Bloomberg on Feb. 14.
The Starbucks news coupled with recent financial earnings suggest that the consumer backlash that sprang up in late 2023 amid public anger over US support for Israel’s military operation in Gaza could be easing after more than a year of lost sales.
On Feb. 10, McDonald’s reported business in the Middle East had improved during Q4 2024, helping drive a 4.1% increase in sales for its internationally licensed franchises year-on-year. Q4 also saw KFC sales up 11% year-on-year in markets impacted by the conflict — including the Middle East, Malaysia and Indonesia — despite a 12% drop overall in 2024. During a Feb. 6 earnings call, David Gibbs, the CEO of the fried chicken chain’s US parent company, Yum Brands, spotlighted these results. “We're regaining momentum,” he said.
