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Malaysian franchises grapple with impact of boycott

KUALA LUMPUR: A wave of boycotts targeting products associated with Israel has dealt a significant blow to various food and beverage franchises.

This movement has led to a notable decline in customer turnout and revenue for numerous well-known establishments, forcing franchise owners to navigate a challenging landscape.

During interviews with the New Straits Times, managers and assistant managers shared insights into the challenges they face amidst this situation.

One store manager, speaking on condition of anonymity, expressed surprise at being affected by the boycott despite having no direct links to Israel.

"Customer visits have declined... today marks the third consecutive day of reduced sales since Deepavali.

"Traditionally, during festive periods we will see a surge in sales but that trend has changed," he said.

Clarifying their lack of affiliation with Israel-supporting entities, the manager emphasised their sole import of cups from abroad, with all other supplies sourced locally.

However, he said public perception has painted a different picture, leading to their inadvertent inclusion in the boycott.

"We only import the cups from abroad; all other items, including kitchen supplies, are locally sourced from our factories," he said.

An assistant manager of a well-known Italian eatery acknowledged a decline in their customer base and sales due to the boycott.

"Our customer base has significantly dwindled, and our sales have declined due to everyone opting for boycott.

"Most of those participating in the boycott are Malays, but we understand their motivation behind it.

"As employees, we do feel the impact of the boycott but unfortunately, there's nothing we can do," he said.

The establishment, he added, now struggles to attract customers, a stark contrast to bustling times during lunch hours in the past.

"In the past, at lunch time, this place will be filled with people, but now it's hard to attract customers.

"It's not just our restaurant. Others are also facing the same situation due to the boycott. This is indeed a challenging time," he added.

Meanwhile, efforts to obtain comments from larger restaurants targeted for alleged link to pro-Israel affiliations were met with silence.

Their managers declined to provide statements citing directives from the higher management.

This silence, as observed by NST, echoed throughout these establishments, with many seats remaining unoccupied.

The demographic shift was evident, with Chinese and Indian visitors becoming the primary clientele, while Malay customers were notably absent.

Meanwhile, the supervisor of a Japanese-based franchise mart said the outlet has not experienced any boycott despite being listed as one of the targeted brands.

"We are aware that we are on the boycott list, but perhaps because we are based in Japan, we are shielded from it," he said.

Yesterday, the NST reported that economists advised consumers to research the brands or companies they are boycotting to avoid "collateral damage."

Associate Professor Dr Nuradli Ridzwan Shah Mohd Dali cautioned against accusing Malaysian-owned franchises of providing funding to Israel, urging a neutral stance to prevent negative repercussions.

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