New York CNN —Starbucks’ Middle East franchisee, Alshaya Group, is cutting thousands of jobs at its coffee shops because of a “challenging” work environment as the chain grapples with boycotts over the brand relating to Israel’s war against Hamas in Gaza.
Kuwait-based Alshaya has owned rights to operate Starbucks in the Middle East for more than 25 years and operates around 1,300 locations across the region, employing about 11,000 people.
Starbucks’ most recent earnings report missed expectations, partially because of weaker sales in the region.
Starbucks isn’t alone: McDonald’s said last month that it’s experiencing “meaningful business impact” in the Middle East because of the war.
Brands, which owns KFC and Pizza Hut, said its chains’ “sales were impacted by the conflict in the Middle East region with varying degrees of impact,” which dented same-store sales growth in several countries.
Persons:
Alshaya, “, ”, McDonald’s
Organizations:
New, New York CNN, Starbucks, East, Alshaya, CNN, Reuters, Alshaya Group, Brands
Locations:
New York, Gaza, East, Northern Africa, Kuwait, Western