The economic impact of anti-Israel protests: Companies are losing billions
Walla Abu-Eid, a food blogger based in Sydney, has gained a large Instagram following by sharing viral recipe videos of homemade Starbucks favorites with her 240,000 followers. Some of her creations include Java-chip Frappuccinos, Mango dragon-fruit refreshers, and Iced white-chocolate mochas.
The purpose behind these videos is not to save money by making these beverages at home, but to avoid supporting western brands like Starbucks, which, according to Abu-Eid, have been linked to supporting Israel’s actions in Gaza.
In a video from December 2023, Abu-Eid instructs viewers to boycott Starbucks, claiming that the company has lost $11 billion globally due to boycotts and encourages others to continue the boycott.
These boycotts have had tangible effects on Starbucks, leading to the ousting of its CEO, Laxman Narasimhan, due to plummeting sales exacerbated by customer boycotts. The company’s shares dropped by 20% in 2024, prompting the appointment of former Chipotle CEO Brian Niccol as the replacement.
The impact of these boycotts has been particularly felt in the Middle East, where Starbucks reported a significant decline in traffic and sales. In response, the company’s Middle Eastern franchisee laid off over 2,000 employees as a result of the sales downturn caused by the boycotts.
Other western brands, such as McDonald’s and Coca-Cola, have also experienced revenue declines due to boycotts in Muslim-majority countries. McDonald’s reported its first quarterly sales miss in nearly four years, attributing it to a demand slump in Middle Eastern stores as a result of boycotts.
The boycott movement, known as BDS, encourages consumers to avoid Israeli products and companies in protest against the Israeli government’s actions. This movement has garnered support in various regions, leading to impacts on businesses that have ties to Israel.
While the exact financial impact of these boycotts is difficult to quantify, they have raised concerns among investors and multinational corporations about the potential long-term effects of such movements on their businesses.
The BDS movement has sparked debates around corporate governance and business practices, with companies like Barclays and Amazon facing pressure to change their ties with Israeli entities. Shareholders and activists are increasingly focusing on BDS and Israel-related issues in corporate decision-making processes.
As the war in Gaza continues, the influence of boycott movements on corporate practices is expected to grow, potentially reshaping consumer habits and corporate governance in the future.
Overall, the impact of the Israel boycotts on businesses remains a complex and evolving issue that may have long-lasting effects on global brands and their operations.
Jonathan Harounoff is the author of the upcoming book “Unveiled: Inside Iran’s #WomenLifeFreedom Revolt”
