Starbucks CEO Acknowledges Losses from Boycott Over Gaza Genocide
Gaza (Quds News Network)- Starbucks CEO Brian Niccol has admitted that boycotts over Israel’s genocide in Gaza have financially hurt the company, particularly in the Middle East. In an interview with Bloomberg on Friday, Niccol acknowledged the impact but called the boycott “really unfortunate,” insisting that Starbucks had “never supported any militaries.”
His comments come after Starbucks’ finance chief revealed in April that comparable store sales outside the US had dropped by 6% in the second quarter of 2024. The company specifically cited the Middle East as a key reason for the decline, as Starbucks locations in the region faced widespread boycotts linked to the genocide in Gaza.
Calls to boycott Starbucks intensified after the company took legal action against Starbucks Workers United, the union representing its employees. On October 9, two days after Israel began its bombardment of Gaza, the union posted a message on X expressing solidarity with Palestine. Starbucks quickly filed a lawsuit, accusing the union of damaging its reputation by using the Starbucks name and logo. The move sparked outrage, leading to protests and a growing consumer boycott.
Despite the financial losses, Starbucks is pushing ahead with expansion plans. Niccol confirmed that the Alshaya Group, Starbucks’ franchise operator in the Middle East, will open 500 new stores in the region over the next five years.
Starbucks’ claim of neutrality does not align with the actions of its leadership. Founder and former CEO Howard Schultz, who remains the largest private shareholder in Starbucks, has a long history of supporting Israel. His recent investment in Israeli cybersecurity startup Wiz has further fueled accusations that Starbucks profits from the occupation.
