Starbucks Malaysia Temporarily Shuts 50 Outlets Amid Challenging Times – Report

Starbucks Malaysia is facing its toughest challenge yet, with one in eight outlets now temporarily closed across the country.

What’s happening to your neighbourhood Starbucks?

Berjaya Food, which operates Starbucks in Malaysia, has temporarily closed 50 out of its 408 stores nationwide – that’s about one in every eight outlets shutting their doors.

This comes as the coffee chain faces ongoing boycotts and increasing competition from other coffee brands.

The closures represent 12% of all Starbucks outlets in Malaysia, doubling from 6% of stores closed in the previous quarter.

Regular customers might need to check if their usual coffee spot remains open.

What’s Causing the Struggle?

Beyond store closures, Berjaya Food reported a significant loss of RM33.68 million in their latest quarter, a stark contrast to the RM20 million profit they made in the same period last year.

Despite efforts to cut costs by reducing staff and negotiating rental expenses, the company continues to face challenges.

Berjaya Food is trying to diversify by expanding Paris Baguette (currently 10 stores) and opening Starbucks outlets outside Malaysia.

However, analysts from Maybank Investment Bank suggest the brand might be permanently losing its appeal.

What’s Brewing for Malaysian Coffee Lovers?

They predict continued losses until the current situation improves.

What does this mean for coffee lovers?

With more coffee chains entering the market and changing consumer preferences, Malaysians might see their relationship with Starbucks evolving.

The company’s future success may depend on how well it adapts to these new challenges and whether it can rebuild customer loyalty.

READ MORE: Are Malaysians Spending Way Too Much On Coffee?

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