American fast food brands, including McDonald’s and KFC, are facing a challenging operating environment in Asia, the Middle East and some parts of Europe weighed by calls to boycott their brands due to perceived links to Israel amid the conflict in Gaza. Many Muslims in the region changed their consumption habits since the war started, slashing demand for fast food from American retailers.
In Pakistan, local water and soft drink brands at some grocery stores are being given prominent shelf space and preference instead of Coca-Cola and Pepsi, which have been popular drinks in the country for decades. Multiple posters circulated among Pakistani citizens that label large multinational companies, including both the US beverage brands, as Israeli-linked products.
Can maker for Pepsi and Coca-Cola saw its sales drop 11 per cent in the quarter ended Mar 31 partly due to “dampened domestic demand” from reactions to the Middle East unrest, Pakistan Aluminium Beverage Cans said in its quarterly report.
McDonald’s became a target of boycotts after photos and videos on social media showed its franchised stores in Israel giving meals to the nation’s soldiers following the Oct seven attack. After that, the brand’s Saudi Arabia franchisee issued statements expressing sympathy for Palestinians and donated two million Saudi riyals (S$720,411) to Gaza relief efforts. Franchisees in other countries with large Muslim population followed suit, with several companies issuing public statements to emphasis their political neutrality.
