Starbucks MY dismisses claims of 100 stores shutdown amidst continuing boycott

Kuala Lumpur, Malaysia – Starbucks in Malaysia has denied various media reports about the local subsidiary shutting down around 100 of its stores nationwide amidst continuing boycott against the brand brought by the conflict in the Middle East.

“The claim that more than 100 Starbucks outlets in Malaysia have been shut down is false. While we have ceased operations at only a few stores, most of the allegedly closed locations are only temporarily closed,” a Starbucks Malaysia representative told Business Times.

It has also clarified that temporary closures are part of an ongoing assessment, allowing them to align their presence more strategically, with no loss of jobs.

“Importantly, no employees have been affected by the permanent or temporary closures, as they have been reassigned to nearby stores to continue serving our customers seamlessly,” the representative said.

It is worth noting that Starbucks Malaysia–linked to conglomerate group Berjaya Group–had reported a net loss of RM91.5m this year, with revenue falling 35% from RM1.1b to RM730.3m.

Starbucks Malaysia’s latest news also follows a statement they released back in March this year regarding the boycott against the brand and in favour of Palestine, as well as addressing allegations that the coffee chain and its CEO Howard Schultz are providing financial support to Israel.

“What we do believe in, and remain focused on, is staying true to our company’s long-standing heritage – simply connecting with our partners and customers over a cup of high-quality coffee and offering the best experience possible to them – regardless of geographical location,” they said back then.