Berjaya Food posts record RM292m loss as Starbucks Malaysia hit by boycott impact, downsizing

Berjaya Food posts record RM292m loss as Starbucks Malaysia hit by boycott impact, downsizing

KUALA LUMPUR, Aug 28 — Starbucks’ operator in Malaysia, Berjaya Food Bhd, has reportedly posted a record net loss of RM292 million for the financial year ending June, more than tripling from a year earlier.

According to a report in Bloomberg, the company said revenue dropped 36 per cent year-on-year to RM477 million, citing “the prolonged impact of the ongoing sentiment related to the Middle East conflict, which affected market dynamics and influenced customers’ spending patterns”.

It reportedly added added that the downsizing of Starbucks outlets led to impairment charges on stores, equipment and right-of-use assets, which rose nearly six times to RM152.8 million.

US fast-food brands have continued to suffer from boycotts in Malaysia and Indonesia over the Gaza conflict, hitting chains like Starbucks, KFC and Pizza Hut, as consumers shy away from perceived Western allegiances.

Starbucks chief executive officer Brian Niccol said the claims were “not based on anything that’s accurate or true.