'This boycott does not benefit anyone', says founder of Starbucks MY's franchise operator

Founder and advisor for Berjaya Corporation, Vincent Tan, has appealed to Malaysians to stop the boycott of Starbucks Malaysia. 

Speaking at a press conference, Tan reportedly told media that Starbucks Malaysia is owned by BFood, a Malaysian company, and is a franchise. Therefore, it is not owned by Americans or Starbucks America.

He reportedly added that 85% of the staff at Starbucks Malaysia stores are Muslim workers and called the boycott unnecessary. 

"This boycott does not benefit anyone. Whatever you do is not going to change Israel and what Israel wants to do," said Tan. "[Benjamin] Netanyahu has his own agenda."

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Tan's comments come shortly after RHB Group, Malaysia's integrated financial services group, reportedly issued a research note advising investors to sell their shares in its franchise owner, Berjaya Food in December last year. The bank reportedly noted a 24% slip in stock prices at the time. 

The recommendation came after ground checks of Starbucks outlets showed at least a 30% fall in foot traffic. This is despite shopping centres being crowded, and most of Starbucks' competitors having regular footfalls. 

According to the New Straits Times, RHB's research note said the situation is worse than expected and that Starbucks has slashed forecasts for its financial year 2024-2026 net profit by 21%, 17% and 7%. 

In response to the boycott, Starbucks released a statement last week to clear up misinformation and to let consumers know that it "stands for humanity". 

"Truth matters. In response to misinformation, we’re sharing the facts on what Starbucks believes and stands for," said Starbucks.

"At Starbucks, truth and transparency are essential to fulfilling our mission, upholding our promises and living our values. So, when misinformation about our company spreads at lightning speed in an increasingly polarised world, we believe it’s critical to respond with facts and to reiterate our position," it added, saying that due to ongoing false and misleading information it was consolidating some of the most frequently asked questions about the brand – and responding with facts.

"Our 400,000 partners around the globe have diverse views about a wide range of topics. Regardless of that spectrum of beliefs, Starbucks has been and remains a non-political organisation," it said, adding:

Neither Starbucks nor the company’s former chairman, president and CEO Howard Schultz provide financial support to the Israeli government and/or the Israeli Army in any way. 

"Our position remains unchanged. Starbucks stands for humanity. We condemn violence, the loss of innocent life and all hate and weaponised speech," said Starbucks. 

"Despite false statements spread through social media, we have no political agenda.  We do not use our profits to fund any government or military operations anywhere – and never have."

It explained also that Starbucks in Malaysia is wholly-owned by a public-listed Malaysian company.

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