CEO
McDonalds, Starbucks, others admit Gaza boycott hitting profits
Firms admit losses or even cut ties with Israel
The chief executives of food chains McDonalds and Starbucks have admitted that the global boycott of their stores and products because of the firms’ support for Israel is hitting their profits. McDonalds in Israel provided free meals to Israeli soldiers participating in Israel’s mass slaughter of Palestinian civilians, while Starbucks has sued a union representing some Starbucks workers – the firm has engaged in union-busting efforts – for a post on the union’s social media account expressing solidarity with Palestinians in Gaza.
Other firms have suffered similarly and have even cut ties with Israel because of widespread grassroots anger over the genocide in Gaza. Swiss-based shipping firm Kuehne & Nagel has ceased transporting materials for Israeli weapons firm Elbit Systems and Japanese giant Itochu has announced it will end all collaboration with the same Israeli firm by the end of this month, citing the International Court of Justice’s damning findings against Israel last month in the case brought by South Africa.
January also saw controversy in Ireland after Dublin airport closed its Starbucks but continued to sell the firm’s products under a different brand.
The longstanding ‘boycott, divestment and sanctions’ (BDS) campaign of peaceful resistance to Israel’s apartheid and illegal occupation rattles Israel to such an extent that it set up a specific government department to combat and discredit it. Now, with the Houthi blockade of Israel-bound shipping hitting Israel’s economy, BDS is biting even deeper.
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Exclusive: Dublin airport rebrands Starbucks cafe – but still selling Starbucks products
Airport says Starbucks sales are a ‘temporary’ measure as critics point to boycott over Gaza and firm’s conduct toward unions
A ‘new’ cafe in Dublin airport’s Terminal 1 is still selling Starbucks products under a different brand name, Skwawkbox can reveal.
The airport announced the opening of its new ‘Vista’ cafe on Thursday in what is said was a unit ‘previously occupied by Starbucks:
But critics were quick to link the announcement to the boycott of Starbucks by many in response to the firm’s links to Israel and its ongoing anti-union activities in the US, with hundreds of responses like the examples below:
I think this is still Starbucks they've just rebranded the name of the café to try and avoid the ongoing boycott. If you zoom in you can see the Starbucks menu, plus they're still using Starbucks cups! There's also zero online presence for "Vista Coffee" – it doesn't exist!
— James M (@MamesJolloy) January 4, 2024
Why is there what looks like a @Starbucks logo in the corner of the left hand screen?
Can you clarify whether this is a rebranding of the existing outlet or has the new one stolen Starbuck's property?
Hope you can clarify; I'm sure you don't want to be associated with theft. pic.twitter.com/xipWJA1eTm— Brian (@LifeOfBOS) January 5, 2024
Starbucks has seen its share price hit since the boycott on sales, despite the company CEO issuing a statement that Starbucks ‘condemns violence, hate, lies and weaponised speech – he did not mention Israel or Gaza in the statement – and that Starbucks ‘stand[s] for humanity’.
Starbucks in the US has been engaged in a long campaign against unionisation by workers that saw leaked video in 2022 show the firm’s founder begging store managers to step up their anti-union activities – and the firm suing the union for trademark infringement. Boycott calls grew after a post went out on the Starbucks Workers Union official Twitter account posted a message of solidarity with Palestine after the widely-misrepresented Hamas raid last October and Israel’s genocidal assault on Gaza that has killed over 30,000 civilians, more than two thirds of them children and women. Starbucks share price has fallen by around seven percent since the boycott. It is not the only global brand to see profits fall – McDonalds’ CEO has admitted that the business has taken a ‘meaningful’ hit.
A spokesperson for Dublin airport confirmed that the Vista cafe is using Starbucks products, but told Skwawkbox that both the brand and the product usage were temporary and that the Starbucks cafe closed because its contract had run out:
Vista is a temporary brand. Starbucks closed at the end of December as their contract expired. An exciting new local coffee brand will be permanently moving into this location in March. Until then, the new operator (using Starbucks’ products) is running the unit temporarily as Vista, ensuring passengers get their caffeine fix.
This change is part of a major overhaul of the food and beverage offerings in T1 and T2 at Dublin Airport which will happen over the coming months. Passengers will see several units operate on a temporary basis in the short term – under generic brands – while the fit-out works are completed.
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