Across Southeast Asia, some of America’s most iconic fast-food brands are grappling with plummeting sales after prolonged consumer boycotts. In Malaysia and Indonesia, global names like Starbucks, KFC, Pizza Hut, and McDonald’s are scrambling to stem losses, with far-reaching consequences for local franchise operators.
In Malaysia, Starbucks, operated locally by Berjaya Food, reported an 18% drop in year-on-year revenue in early 2024, with net losses widening to RM37.2 million (about $9 million)
Maybank analysts warn this slump may persist, forecasting total year losses of up to RM65 million ($14.5 million) and a dip in growth forecasts by nearly 15%
Meanwhile, KFC, run by QSR Brands in Malaysia, has suspended over 100 outlets, including major malls and tourist zones, amidst ongoing boycott-driven pressures
A QSR spokesperson framed the closures as strategic moves to consolidate operations, citing economic difficulties and a focus on high-performing locations
Indonesia is also seeing tangible effects. Starbucks’ local franchise, Map Boga Adiperkasa, slowed expansion plans drastically—from 70–80 stores a year to just 10–15—while recording an 80 billion rupiah loss in the first half of 2025
Some franchisees, hit hard by the boycott, say business is slowly picking up—but the scars run deep. On Reddit, one KFC outlet manager lamented the economic pain:
“The boycott has been very effective to show our message… But I’m also concerned about the livelihoods of families of staff who relied on their jobs at KFC.”
“They’re forced to operate shorter hours… Many have lost their jobs. A kind customer even gave me RM200 to help.”
The consumer shift hasn’t been without winners. Homegrown coffee chains like ZUS Coffee, Gigi Coffee, Mukarami Coffee, and others have enjoyed a noticeable spike in patronage. A 50-year-old Malaysian customer put it plainly: “I used to drink a lot of Starbucks… my conscience feels better now.” Owners report 15–20% increases in daily sales without significant changes to operations
In Indonesia, Fore Coffee gained traction through proactive halal certification—a move aligning with local values and facilitating expansion amid the boycott
Despite attempts at localisation—custom drinks, local collaborations, and merchandise—many franchisees feel sales are still tanking. Berjaya’s chairman, Vincent Tan has publicly appealed to Malaysians to stop the boycott, but the rally hasn’t fully returned.
Industry observers warn that boycotts, combined with rising local competition, may permanently erode customer loyalty. A consumer on Reddit doubted the boycott was the sole factor, “Blaming the boycott is a lazy cop-out… Zus does a great job with localised marketing.”
Yet analysts remain cautious. Business Standard cites McDonald’s global CEO, who said recovery may take months, explaining, “We’re not expecting to see any meaningful improvement… until the war is over.”
As boycott fatigue and consumer politics collide, US franchises in Malaysia and Indonesia remain in a precarious position. Recovery hinges on a mix of restored public sentiment, savvy localisation efforts, and a shift in geopolitical tensions abroad. Until then, local cafes and regional chains appear poised to retain their gains in brand affinity and market share.
