Boycott campaigns over Gaza war hit Western brands in some Arab countries (updated)

TBS Holdings

23/11/2023 07:46

(Repeats story first published on Wednesday, text unchanged)

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      Some fast food chain outlets largely deserted 
    

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      Protests reflect groundswell of anger over Gaza
    

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      Targeted brands refute "disinformation", rumours
    

  
    By Farah Saafan and Suleiman Al-Khalidi
       CAIRO, Nov 22 (Reuters) - On a recent evening in Cairo,
a worker cleaned tables in an empty McDonald's restaurant.
Branches of other Western fast-food chains in the Egyptian
capital also appeared deserted.
    All have been hit by a largely spontaneous, grassroots
boycott campaign over Israel's military offensive in the Gaza
Strip since the deadly Hamas attack in southern Israel on Oct.
7.
    Western brands are feeling the impact in Egypt and Jordan,
and there are signs the campaign is spreading in some other Arab
countries including Kuwait and Morocco. Participation has been
uneven with only minor effects seen in Saudi Arabia and the
United Arab Emirates.   
    Some of companies the campaign is directed at are perceived
to have taken pro-Israeli stances, and some are alleged to have
financial ties to Israel or investments there. 
    As the campaign has started to spread, boycott calls
circulated on social media have expanded to list dozens of
companies and products, prompting shoppers to shift to local
alternatives.   
    In Egypt, where there is little chance of people taking to
the streets because of security restrictions, some see the
boycott as the best or only way to make their voices heard.  
    "I feel that even if I know this will not have a massive
impact on the war, then this is the least we can do as citizens
of different nations so we don't feel like our hands are covered
in blood," said 31-year-old Cairo resident Reham Hamed, who is
boycotting U.S. fast food chains and some cleaning products.
    In Jordan, pro-boycott residents sometimes enter McDonald's
and Starbucks branches to encourage scarce customers to take
their business elsewhere. Videos have circulated of what appear
to be Israeli troops washing clothes with well-known detergent
brands which viewers are urged to boycott. 
    "No one is buying these products," said Ahmad al-Zaro, a
cashier at a large supermarket in the capital Amman where
customers were choosing local brands instead.
    In Kuwait City on Tuesday evening, a tour of seven branches
of Starbucks, McDonald's and KFC found them nearly empty. 
    In Rabat, the capital of Morocco, a worker at a Starbucks
branch said the number of customers had dropped off
significantly this week. The worker and the company gave no
figures.
    McDonald's Corp said in a statement last month that it was
"dismayed" by disinformation regarding its position on the
conflict and that its doors were open to all. Its Egyptian
franchise has underlined its Egyptian ownership and pledged 20
million Egyptian pounds ($650,000) in aid to Gaza.
    Asked for comment, Starbucks referred to a statement on its
website about its operations in the Middle East that was updated
in October. The statement said the company was a non-political
organisation and dismissed rumours that it had provided support
to the Israeli government or army. Starbucks, which earlier this
month reported record revenues for the fourth quarter, said it
had nothing further to share on its business.
        Other Western companies did not immediately respond to
requests by Reuters for comment.
    
    'UNPRECEDENTED REACTION'
    The boycott campaigns have spread in countries where
pro-Palestinian sentiment has traditionally been strong. Egypt
and Jordan made peace with Israel decades ago, but those deals
did not lead to a popular rapprochement. 
    The protests also reflect a groundswell of anger over an
Israeli military operation that is more destructive than
previous offensives, causing a humanitarian crisis and killing
13,300 civilians, according to authorities in Hamas-run Gaza. 
    Israel said about 1,200 people were killed in the Hamas
attack on Oct. 7, and that about 240 were taken hostage.
    Previous boycott campaigns in Egypt, the Arab world's most
populous nation, had less impact, including those advocated by
the Palestinian-led Boycott, Divestment, Sanctions (BDS)
movement.
    "The scale of the aggression against the Gaza strip is
unprecedented. Therefore, the reaction, whether on the Arab
street or even internationally, is unprecedented," said Hossam
Mahmoud, a member of BDS Egypt.
    Some campaigners have singled out Starbucks for suing its
workers' union over a post on the Israel-Hamas conflict, and
McDonald's after its Israeli franchise said it gave free meals
to Israeli military personnel.     
    An employee at McDonald's corporate offices in Egypt who
asked not to be named said the Egyptian franchise's October and
November sales fell by at least 70% compared to the same months
last year. 
        "We are struggling to cover our own expenses during this
time," the employee said. Reuters was not immediately able to
verify the figures the employee provided.
    Sameh El Sadat, an Egyptian politician and co-founder of TBS
Holding, a supplier to Starbucks and McDonald's, said he had
noticed a drop or slowdown of about 50% in demand from his
clients. 
    
    UNEVEN TAKE-UP
    Despite efforts by targeted brands to defend themselves and
retain business with special offers, boycott campaigns have
continued catching on, in some cases outside the Arab world.
    In Muslim-majority Malaysia, a worker at a McDonald's in
Putrajaya, Malaysia's administrative capital, said the branch
was seeing about 20% fewer customers, a figure that Reuters was
not immediately able to verify.
    Ride-hailing app Grab also faced calls for a boycott in
Malaysia after the chief executive's wife said she had fallen
"completely in love" with Israel during visits there. 
    She later said the posts were taken out of context. The
Malaysian arms of Grab and McDonald's said following the boycott
calls that they would donate aid for Palestinians.
    Earlier this month, Turkey's parliament removed Coca-Cola
and Nestle products from its restaurants, with a parliamentary
source citing a "public outcry" against the brands although no
big Turkish company or state agency has cut ties with Israel.   
  
    Take-up of boycotts has been uneven, with no major impact
seen in some countries including Saudi Arabia, the United Arab
Emirates and Tunisia. Even where boycotts have a wider
following, some people are sceptical they can have much effect.
    "If we really want to boycott and support these people
(Palestinians), we take arms and fight with them...Otherwise,
no," said Cairo kiosk owner Issam Abu Shalaby.    

($1 = 30.9000 Egyptian pounds)

 (Reporting by Farah Saafan, Sarah El Safty and Mai ShamsElDin
in Cairo, Suleiman Al-Khalidi in Amman, Danial Azhar in Kuala
Lumpur, Ahmed Hagagy in Kuwait City, Jonathan Spicer in
Istanbul; Additional reporting by Deborah Mary Sophia; Writing
by Aidan Lewis; Editing by Cynthia Osterman)
 ((Aidan.Lewis@tr.com; +20-1001174410;))