The ongoing conflict in Gaza has sparked widespread boycotts against US fast food brands such as McDonald’s and KFC, significantly impacting their sales across Asia, the Middle East, and parts of Europe. These boycotts, driven by perceived links to Israel, have forced some outlets to temporarily close their doors.
In Pakistan, local brands are being favored over international names like Coca-Cola and Pepsi, with sales of the latter falling by 11% in the quarter ending March 31. Posters identifying multinational companies, including McDonald’s and Coca-Cola, as linked to Israel have been widely circulated, bolstering support for the Palestinian cause.
McDonald’s became a central target after its franchised stores in Israel were seen providing meals to Israeli soldiers. In response, the brand’s Saudi Arabia franchisee issued a statement expressing sympathy for Palestinians and pledged donations to Gaza relief efforts, a gesture followed by other franchisees in Muslim-majority countries.
The impact on McDonald’s and Starbucks has been profound, with CEO Chris Kempczinski noting the “most pronounced impact” in the Middle East and Muslim-majority countries like Indonesia and Malaysia. Similarly, KFC outlets in Southeast Asia have felt the strain, with over 100 outlets in Malaysia forced to close temporarily.
In North Africa, KFC’s newly opened store in Algeria was also temporarily closed amidst nationwide protests. In Europe, while the full impact remains unclear, Kempczinski acknowledged a sales drop in Muslim-majority areas, particularly in France.
These boycotts have created a challenging environment for US fast food brands, leading to declining sales and temporary closures of outlets. Despite some brands issuing statements of political neutrality, the influence of the boycotts is expected to persist through the end of the year, reflecting the deep-rooted sentiments and geopolitical complexities involved.