Starbucks Middle East Franchisee Lays Off 2,000 Workers Amid Boycotts Over Israel-Hamas War

As a consequence of the ongoing boycotts of the brand over the Israel-Hamas war, Starbucks' franchisee in the Middle East, Alshaya Group, has decided to lay off roughly 2,000 workers at its restaurants throughout the region. This represents just over 10% of the workforce in its Middle Eastern and North African locations. The Kuwait-based family business, Alshaya Group, cited challenging business conditions as the primary reason behind this decision.

Impact on Starbucks Stores in the Region

Alshaya Group, which operates approximately 1,900 Starbucks stores in countries like Bahrain, Egypt, Jordan, Kuwait, Lebanon, and others, informed the Associated Press about the layoffs. The company emphasized that the challenging trading conditions over the last six months have led to this "very sad and very difficult decision" to reduce the number of colleagues in their Starbucks stores.

Boycotts and Criticism

Starbucks, among other Western brands, has been the subject of criticism from pro-Palestinian activists since the attack on Israel by Hamas. In the wake of the conflict, McDonald's and other chains have also faced boycott campaigns from various groups over their perceived stance on the Israel-Hamas war. McDonald's CEO Chris Kempczinski stated earlier this year that the fast-food chain is experiencing a "meaningful business impact" in the Middle East and elsewhere due to the conflict.

False Rumors and Legal Actions

Rumors alleging that Starbucks financially supports the Israeli government and its military have been debunked by the company on its website. The company emphasized that such claims are "unequivocally false." Additionally, Starbucks took legal action against Workers United over a pro-Palestinian message the union posted online.

Local Incidents

Incidents related to the Israel-Hamas war have also impacted Starbucks on a local level. In Glen Rock, New Jersey, a Starbucks employee found red paint and antisemitic stickers related to the conflict on the shop's sign in February. This led to concerns about potential hate crimes.