Starbucks Boycott In Malaysia Pushes Tycoon Vincent Tan’s Berjaya Food To Record Loss
📝 usncan Note: Starbucks Boycott In Malaysia Pushes Tycoon Vincent Tan’s Berjaya Food To Record Loss
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Malaysian tycoon Vincent Tan’s Berjaya Food holds the franchise to operate Starbucks outlets in the Southeast Asian nation.
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Malaysian tycoon Vincent Tan’s Berjaya Food reported a record net loss, as the operator of U.S. coffee chain Starbucks in Malaysia lost customers amid protests linked to the Gaza conflict.
The company said its net loss widened to 292 million ringgit ($69 million) for the financial year ended June, from 91 million ringgit the previous year, as revenue slumped 64% to 477 million ringgit.
“The prolonged impact of the ongoing sentiment related to the Middle East conflict affected market dynamics and influenced customers’ spending patterns,” the company said on Thursday.
The number of Starbucks outlets in Malaysia have fallen to 320 currently from about 408 in June 2024 as some shops were closed amid declining revenue.
“The group has focused on diversifying into local and overseas markets while consolidating stores domestically to strengthen core operations and establish a solid foundation for sustainable growth,” the company said on its future prospects.
Berjaya Food began its licensed partnership with Starbucks in December 1998 with an outlet in Kuala Lumpur. In August 2024, it won franchises to operate Starbucks stores in Denmark, Finland, and Iceland. The company’s portfolio also includes South Korean bakery-café chain Paris Baguette and Kenny Rogers Roasters.
With an estimated net worth of $770 million, Tan is among the wealthiest in Malaysia. with interests in financial services, retail and real estate. His property outfit Berjaya Land has also been underperforming with the developer’s net loss widening to 103 million ringgit in the year ended June from 88 million ringgit a year ago.
