U.S. mega brands like Coca-Cola, McDonald’s, Starbucks and KFC all have experienced a decline in sales in regions that have experienced Gaza-related boycotts.
McDonald’s was targeted after its franchise in Israel sponsored a giveaway of thousands of free meals to Israeli soldiers. Starbucks came under fire after the coffee giant sued its own union, Starbucks Workers United, after the workers posted a message of solidarity with Palestinians under an account on X that uses the Starbucks logo.
In February, shares of McDonald’s fell about 4 percent after the company reported that flagging sales in the Middle East contributed to it missing fourth-quarter revenue targets. In January, Starbucks reported quarterly earnings and revenue that fell short of Wall Street’s expectations due to “headwinds” that the company’s CEO Laxman Narasimhan said included the Gaza boycott.
The boycott against Coca-Cola derives from the decision of its franchisee the Central Bottling Company to operate out of the Atarot Settlement Industrial Zone in Israeli-occupied Palestinian territory, said Omar Barghouti, co-founder of Boycott, Divestment and Sanctions, a nonviolent activist movement opposed to Israel’s occupation.
In Jordan, supermarkets have labeled local products to help direct boycotters away from foreign brands that have ties with Israel. Starbucks’ franchisee in the Middle East had to lay off 2,000 employees due to the boycotts.
“I’ve seen branches of Starbucks and McDonald’s completely empty in Morocco, Tunisia and Oman,” said Todman.
