Starbucks Malaysia parent Berjaya Food narrows quarterly losses

Berjaya Food Berhad, the operator of Starbucks in Malaysia and Brunei, has reported signs of early recovery even as it logged its eighth straight quarterly loss, signalling the brand’s ongoing challenges amid prolonged consumer boycotts.

For the first quarter of FY2026 ending 30 September, the group posted a net loss of RM14.79 million, significantly reduced from RM33.68 million in the same period last year. Revenue rose 3.3% year-on-year to RM128.25 million, driven largely by contributions from its newer overseas ventures.

The company attributed the narrower losses to cost-saving measures, store rationalisation and lower depreciation following impairments recorded previously. Starbucks Malaysia also saw positive same-store sales growth this quarter, though this was offset by a reduced number of operating outlets.

While the financial figures point to operational improvements, the retail reality on the ground remains complicated. Starbucks Malaysia has been battling public boycotts since late 2023 due to its global parent company’s alleged links to Israel. A sentiment that continues to shape consumer behaviour well into 2025.

Don't miss: Negative sentiments brew over Starbucks Malaysia and Tourism Malaysia collab

Local coffee chains have benefited from the shift, with Malaysians still vocal about favouring homegrown alternatives. The backlash resurfaced strongly in October, when Tourism Malaysia’s strategic partnership with Starbucks Malaysia for Visit Malaysia 2026 triggered widespread condemnation online.

The collaboration, themed “Jom Brew-Cuti Bersama!”, centred around exclusive merchandise and promotional beverages, but public response was sharply negative. According to CARMA data, 54.5% of conversations around the campaign during its launch time skewed negative, with only 6.9% positive.

Despite the tense brand climate, Berjaya Food emphasised in the notes paired with its results announcement, that it's that early signs of recovery are emerging, particularly as its store consolidation strategy and operational efficiencies begin to take effect. The group said it will continue exploring opportunities both locally and internationally while “strengthening core operations to support sustainable long-term growth.”

A key focus will be innovation, digitalisation and strengthening customer engagement across online and offline touchpoints, which the company believes will deepen loyalty and build resilience across its portfolio. "We aim to further build operational resilience, reinforce our core business, and drive sustainable growth to elevate brand equity and improve financial performance," it said.

Beyond Starbucks, the group also operates Kenny Rogers Roasters in Malaysia, as well as Paris Baguette in Malaysia and the Philippines. Berjaya Food also operates Bestari Food Trading, which specialises in the distribution of consumer-packaged goods (CPG) across Malaysia, including Star Kombucha, Sai Ngon canned coffee, and Joybean products. 

Berjaya Food added that it remains committed to improving its financial position and elevating brand equity across all regions it operates in. Still, with Starbucks Malaysia continuing to navigate one of the most sustained consumer boycotts in recent memory, meaningful recovery in the domestic market may hinge as much on sentiment as it does on operational strategy.

Related articles: 
Starbucks Malaysia reportedly shuts 50 outlets
'This boycott does not benefit anyone', says founder of Starbucks MY's franchise operator
Did Starbucks Malaysia's clarification on its alleged Israeli support sway sentiments?