Starbucks Faces Challenges in Malaysia and US Operations
Starbucks’ Malaysia franchise holder, Berjaya Food, has reported a significant increase in losses due to boycotts of US fast food brands. This has resulted in a decline in sales and profitability for the company.
Key Factors Contributing to Decline
- Boycotts of US fast food brands in Malaysia
- Decline in sales and profitability
Company Response to Challenges
Starbucks is attempting to boost sales by introducing new services, including:
- Allowing customers to choose when they pick up their mobile orders
- Introducing mobile ordering and drive-thru services
However, the company’s new CEO, Brian Niccol, has acknowledged that relying on mobile ordering and drive-thru services was a mistake.
New Initiatives and Controversies
Starbucks has introduced compostable cups in 14 states, sparking debate among customers.
Company Performance and Future Plans
The company is working to address its issues and improve its performance.