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After Starbucks, McDonald’s also reports huge losses due to boycott amid Gaza bombings

McDonald’s, the global fast-food giant, has acknowledged a significant impact on its business due to boycotts related to Israel’s siege of Gaza.

CEO Chris Kempczinski expressed disappointment over the misinformation causing this impact, emphasizing that McDonald’s is represented by local owner-operators in every country, including Muslim nations, who contribute to their communities and employ thousands.

Approximately 5% of McDonald’s 40,000 outlets worldwide are located in the Middle East. Calls for a boycott intensified when McDonald’s Israel announced free meals for the Israeli Defence Force, prompting the official endorsement of a boycott by the Boycott, Divestment and Sanctions (BDS) movement.

Despite the local ownership structure, boycott advocates argue that global franchises contribute to the company, which is linked to its Israel franchise.

The backlash reached Pakistan, leading McDonald’s to issue a statement distancing itself from Israel and expressing opposition to violence and hate speech.

McDonald’s admission follows a similar acknowledgment by Starbucks, reporting vandalism and threats to its outlets.

Starbucks is already entangled in a conflict with the Workers United union, with a lawsuit filed in October, alleging the union’s brief social media statement reflected support for violence by Hamas.

Meanwhile,

McDonald’s Malaysia has taken legal action against the Boycott, Divestment and Sanctions (BDS) Malaysia movement, accusing it of making false and defamatory statements that have negatively impacted the company’s business.

The fast-food giant’s licensee in Malaysia, Gerbang Alaf Restaurants Sdn Bhd (GAR), is seeking damages totaling 6 million ringgit ($1.31 million). Malaysia, being a predominantly Muslim country and a strong supporter of the Palestinian cause, has witnessed boycott campaigns against certain Western fast-food brands due to their perceived association with Israel’s military actions in Gaza.

GAR alleges that BDS Malaysia, through social media posts, connected McDonald’s and other companies to Israel’s “genocidal war against Palestinians in Gaza.” The lawsuit claims that BDS Malaysia encouraged the public to boycott McDonald’s Malaysia, resulting in financial losses, job cuts, and operational disruptions such as closures and reduced operating hours.

McDonald’s Malaysia has confirmed the legal action, stating that it aims to protect its “rights and interests.” In response, BDS Malaysia denies defaming the fast-food company and expresses its intention to address the matter in court. The BDS movement seeks to end international support for what it perceives as Israel’s oppression of Palestinians and aims to pressure Israel to adhere to international law.

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I am an experienced writer, analyst, and author. My exposure in English journalism spans more than 28 years. In the past, I have been working with daily The Muslim (Lahore Bureau), daily Business Recorder (Lahore/Islamabad Bureaus), Daily Times, Islamabad, daily The Nation (Lahore and Karachi). With daily The Nation, I have served as Resident Editor, Karachi. Since 2009, I have been working as a Freelance Writer/Editor for American organizations.

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