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Boycotts Impact McDonald’s and Starbucks in Indonesia and Malaysia

by Nick

During Ramadan, Putra Kelana, an entrepreneur from North Sumatra, typically enjoys breaking fast at various food outlets. However, this year, one notable absence from his menu is McDonald’s. Kelana joined a boycott of the fast-food chain after McDonald’s Israel donated meals to the Israeli military during the conflict in Gaza. Expressing solidarity with Palestine, Kelana and others are actively avoiding products associated with Israel, including McDonald’s.

The boycott extends beyond McDonald’s to other brands perceived to have ties to Israel. In Indonesia and Malaysia, where sentiments against Israel are strong, consumers are making conscious choices to avoid such products. Unilever, known for brands like Dove and Ben & Jerry’s, has experienced a decline in sales in these regions due to consumer-driven campaigns. Even household items like washing up liquid and toothpaste are being swapped for local alternatives to avoid indirectly supporting Israel.

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Despite the impact, many of these brands have limited connections to Israel. For instance, McDonald’s outlets in Muslim-majority countries often express support for Palestinians, and companies like Danone and Unilever have denied involvement in political matters. Yet, consumers remain resolute in their stance, holding these brands accountable for perceived affiliations.

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Starbucks, a global brand with local ownership in Indonesia and Malaysia, has also felt the effects of the boycott. Slower business during Ramadan and a significant revenue drop in Malaysia indicate the impact of consumer sentiment on international franchises.

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While some franchisees have taken legal action against boycott movements, the sentiment persists among consumers like Kelana, who acknowledge the sacrifices involved but remain committed to their cause. Despite missing the familiar taste of McDonald’s during Ramadan, Kelana and others prioritize their principles over convenience, believing in the power of consumer choice to drive change.

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