5-2-2024 (KUALA LUMPUR) Malaysian coffee chains are experiencing a surge in popularity as locals shun international brands perceived to support Israel in its conflict with the Palestinian militant group Hamas. In a nation where the majority of the population sympathizes with the Palestinian cause, social media has been abuzz with calls to boycott American brands, leading many to turn to homegrown coffee establishments. Renowned names like ZUS Coffee, Eight Ounce Coffee, Gigi Coffee, Richiamo Coffee, Bask Bear Coffee, and Mukarami Coffee have seen a significant rise in their customer base.
One 50-year-old housewife, who preferred to be identified only as Diana, shared her change in coffee preference, stating, “I have shifted to Gigi or ZUS. I used to drink a lot of Starbucks coffee, my middle name was Starbucks. My conscience feels better now.” The ongoing Israel-Hamas conflict, which began in October 2023, has prompted Malaysian consumers to express their solidarity through their purchasing decisions, resulting in a widespread boycott of US brands, including Starbucks, KFC, McDonald’s, Domino’s, Burger King, and Nestle.
Starbucks, in particular, has experienced a significant decline in foot traffic since late 2023 when it became a primary target of the boycott. The American-based chain faced backlash after suing a labor union in Iowa over social media posts supporting Palestine. Once bustling with customers, Starbucks outlets in Malaysia now stand mostly empty. Ivy Simon, a 45-year-old business owner, commented on the shift, saying, “My local Starbucks used to be bustling with people. Now there are hardly any.” This decline in footfall for international brands has resulted in a boom for local coffee shops instead.
Mukarami Coffee, for instance, has witnessed a remarkable 15 to 20 percent increase in daily sales across its Selangor state outlets since late November 2023. Owner-operator Rafizah Amran believes this growth is directly linked to the ongoing Middle East conflict, stating, “It’s a clear indication that consumers are pivoting to local brands, reflecting their stance through their purchasing decisions.” Similarly, Eight Ounce Coffee, managed by Wyld Group, reported an 8 percent rise in sales at its branches in Suria KLCC, The Gardens Mall, and The Exchange TRX in December 2023.
While Gigi Coffee’s group CEO, Marcus Low, acknowledged an improvement in sales, he refrained from attributing it solely to the Israel-Hamas war, emphasizing that multiple factors contributed to their sales volume. Nevertheless, research firm RHB Research reported a minimum 30 percent decrease in foot traffic for Starbucks outlets in December. Ms. Rafizah noted Malaysia’s importance as a lucrative coffee market and highlighted the significant impact the Middle East crisis has had on local coffee brands.
Malaysia has seen a remarkable increase in coffee consumption in recent years, ranking third in the Asia-Pacific region. According to the International Coffee Organisation (ICO), coffee consumption in Malaysia rose by 73 percent from 2020 to 2021. The ICO, a United Nations body dedicated to strengthening the global coffee sector, also revealed that the average Malaysian consumed 2.2kg of coffee in 2022. In comparison, the average Singaporean consumed 2.6kg of coffee in 2021.
