Impact of Boycotts on US Brands Amid Israel-Gaza Conflict

Several US-based corporations are experiencing a downturn in sales across Asia and the Middle East, which has been partially attributed to boycotts related to their perceived stance on the Israel-Gaza situation. Of particular note is the dip in sales for fast-food titan McDonald's, which reported growth significantly below its projections for the final quarter of 2023.

McDonald's Sales Under Pressure

McDonald's has publicly acknowledged that its sales have been adversely affected in regions such as the Middle East, China, and India. The company's growth figures for the questioned period stand at a meager 0.7 percent increase, a stark contrast to the 5.5 percent growth target. This impact is linked to the widespread criticism the brand faced after its Israeli branches provided free meals to Israeli soldiers during military actions in Gaza.

As backlash ensued, McDonald's franchises in several Middle Eastern countries attempted to distance themselves from the controversy by pledging financial aid to Gaza and reinforcing their independence from the actions of the Israeli branches.

Starbucks Feels the Heat

Similarly, Starbucks adjusted its global sales forecast downward after observing weakening growth, including in its Middle Eastern markets. The company's revised expectations indicate an anticipated increase of 4 to 6 percent, down from the 5 to 7 percent previously projected.

Initial support expressed by the Starbucks Workers United for Palestinians has led to heightened tensions, including lawsuits and counterclaims, as well as defamatory statements and property damage against the coffee company.

Coca-Cola's Recurrent Boycott Challenges

Coca-Cola has a history of facing boycotts in the Middle East, going back to the Arab League's sanctions which lasted from 1967 to 1991. Although Coca-Cola has not been involved in recent contentious activities, the brand's historical connections with Israel and its status as an iconic American entity have brought it back under the boycott spotlight.

In particular, the Turkish parliament made the decision to ban Coca-Cola products, resulting in a sharp 22 percent sales decline for the brand's Turkey distributor.

Domino's Pizza Confronts Misinformation

Domino’s faces consumer backlash in Asia, amidst unverified claims of giving free food to Israeli soldiers. Malaysia, a country without diplomatic relations with Israel, has been influential in protest movements, which has affected Domino's performance in the region. The association with the USA as an ally of Israel has placed American brands under scrutiny in Malaysia and elsewhere in Asia.

boycott, conflict, sales