Boycotts against Western brands are gaining momentum in parts of the Middle East and beyond due to anger over the US and Europe’s perceived lack of action to end the Israel-Hamas war. Shoppers in the region, as well as Muslim nations like Pakistan, are shunning big foreign brands, causing sales to slump and creating public relations challenges. Starbucks and McDonald’s stores in Cairo have been left empty, local Egyptian soda brands have seen sales triple, and Americana Restaurants International, the Middle East franchise operator for KFC, Pizza Hut, Krispy Kreme, and Hardee’s, has seen its shares decline. This backlash reflects a new era of crisis management for consumer brands as emotionally charged shoppers associate them with government policies. Global brands are increasingly facing polarising scenarios amplified across borders by social media, and the Middle East offers brands a chance for growth in a region with tens of millions of young consumers. However, the region also presents operational and political complexities.
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Starbucks and Coca-Cola boycotts in response to Gaza War benefit regional competitors
