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Viral boycotts serve up challenges and opportunities for global brands in Middle East

RIYADH, SAUDI ARABIA - JUNE 20: A car enters the drive-thru of a McDonald's restaurant on June 20, 2018 in Riyadh, Saudi Arabia. Many U.S. chains, including restaurants, apparel brands and ice cream shops, are present across Saudi Arabia. (Photo by Sean Gallup/Getty Images)
To:

Al-Monitor Readers

From:

Samuel Wendel

Senior Market Research Analyst, Al-Monitor

Date:

Jan. 13, 2024

Bottom Line:

The Middle East is cooking up trouble for McDonald’s. The CEO of the burger behemoth admitted on Jan. 4 that several markets in the Middle East were experiencing “a meaningful business impact” amid boycotts in the Arab world, the latest sign of the challenges facing big name American consumer brands amid public anger over US support for Israel’s military operation in Gaza. Western companies have faced regional boycotts before, but the magnitude and timing of this bout of backlash could succeed where others have failed if this war drags on and delivers a lasting blow to America’s soft power in the region — potentially impacting consumer relationships to everything from iPhones to automakers, while opening the door for rivals to capitalize.

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