Showing posts with label Starbucks. Show all posts
Showing posts with label Starbucks. Show all posts

Saturday, May 30, 2026

Happy Pesta Kaamatan & Hari Gawai 2026

Happy Pesta Kaamatan & Hari Gawai!

FYI, Pesta Kaamatan (Sabah) and Hari Gawai (Sarawak) are both indigenous harvest festivals that mark the end of the rice harvesting season. And both share deep roots in agricultural thanksgiving, communal unity, and the preservation of rich cultural heritage of Sabah and Sarawak. 

[Note: Pesta Kaamatan falls on May 30th and 31st annually, while Hari Gawai takes place on June 1st and 2nd every year].

















Berjaya Food Berhad posted another loss in the recently-ended quarter as costs and expenses continued to outsize the marginal revenue growth. 

Net loss at the franchisee of the Starbucks coffee chain was RM14.32 million for the three months ended March 31, 2026 (3QFY2026), marking their 10th consecutive quarter in the red. 

Still, the loss was smaller than RM37.19 million in 3QFY2025 thanks to cost control and store closures. 

Revenue for the quarter rose 4.9% year-on-year to RM119.14 million, largely driven by their overseas operations.

And of course, Starbucks account for the biggest chunk of Berjaya Food's business, contributing about 80% of group revenue. Therefore, shifts in the coffee chain's performance dictate the financial health of the entire group.

Thursday, August 28, 2025

Worst FY2025 Earnings for Berjaya Food

Berjaya Food Bhd ended their 2025 financial year with their worst quarterly and annual earnings since their 2011 listing, hit by impairments on Starbucks Malaysia’s outlets amid a widespread consumer boycott due to the prolonged Middle East conflict. 

Net loss for their fourth quarter ended June 30, 2025, jumped to RM185.79 million, nearly five times the RM38.2 million they incurred in the fourth quarter of the previous year, as revenue fell 10% to RM115.9 million from RM130.57 million.

According to theedgemalaysia.com, their bottom line was primarily dragged by impairment charges on property, plant and equipment (PPE) and right-of-use (ROU) assets, which amounted to RM149.88 million, following the downsizing of their Starbucks Malaysia operations.

The group's annual net loss for FY2025 widened to RM291.99 million – more than triple the RM90.92 million net loss it recorded for FY2024 – as revenue dropped 36.5% to RM476.77 million from RM750.7 million. 

Berjaya Food, which operate the Starbucks Coffee brand in Malaysia, Brunei and in the Nordic countries, specifically Iceland, Denmark, and Finland; Kenny Rogers Roasters in Malaysia; and Paris Baguette in Malaysia and the Philippines, said they remain focused on consolidating their local store network while diversifying into overseas markets to strengthen their foundation for sustainable growth. 

Whatever. It's not only in Malaysia but Starbucks is currently facing global difficulties, evidenced by a 36% drop in brand value in 2025 from its peak in 2024, declining revenues in the US and China, and falling profits despite accelerated investments and promotions.

I don't dare to assert that Starbucks is a dying brand – but for sure, it is slipping badly!











School shootings have become a grim fact of life in the US. 

On Wednesday, two children aged eight and 10 have been killed and 17 others (including 14 children) were injured, when a gunman opened fire on schoolchildren attending Mass at Annunciation Catholic School in Minneapolis, Minnesota. 

Local authorities have not yet discerned a motive for the attack and said the 23-year-old shooter identified as Robin Westman – armed with a rifle, a shotgun and a pistol – took his own life and appears to have acted alone. The FBI said that they are probing the attack as a potential act of terrorism. 

FYI, the attack is the 146th such attack of its type since January, according to the K-12 School Shooting Database.







Wednesday, August 13, 2025

Don't Bring Large Office Equipment Please

Starbucks in South Korea introduce a new policy which is aimed at enhancing in-store experience. 

According to a Business Insider report, the coffee retail chain have put up notices in their South Korean stores banning large office equipment. The notices further urge customers to take their belongings when leaving for long periods and to share tables with others. The BI report quotes Korea's local publications – JoongAng Daily and the Korea Herald. 

Starbucks Korea updated their policy in order for their customers to “have a pleasant and accessible store experience”, a Starbucks representative told the publication. 

“While laptops and smaller personal devices are welcome, customers are asked to refrain from bringing desktop computers, printers, or other bulky items that may limit seating and impact the shared space”, the representative added. However, the rules do not include any time limits for staying in their stores. 

The move follows social media posts showing customers in the said country using foldable partitions at tables, blocking access for others. 

The policy targets a growing work-from-café trend known locally as “cagongjok”. For those unaware, cagongjok refers to people who work or study in cafés for long hours. In Seoul, this practice is fueled by the city’s dense café culture, with coffee shops on nearly every street corner.

Monday, June 30, 2025

Watch Out, Starbucks: China's Luckin Are Now In The US

Luckin Coffee, the fast-growing chain that beat Starbucks at their own game in China, has entered the United States. 

Their first two US locations open today – both in New York City – marking an escalation in competition against Starbucks and other coffee chains, such as Dutch Bros, that have successfully built a loyal following in targeting Gen Z drinkers with TikTok-worthy drinks at affordable prices. 

Luckin’s menu is filled with usual coffeehouse staples, including cold brews, hot coffee and matcha options. Signature items include adding fruit like pineapple and raspberry to their iced coffees as well as a line of brightly colored “Refreshers” that mixes coconut milk and fruity juices and cold foams. A small selection of pastries are also on sale. 

Perhaps the biggest storyline has been Luckin’s dominance over Starbucks in China. The number of Luckins overtook Starbucks in China in 2019, giving them the confidence to plot a US expansion. 

In 2023, Luckin’s revenue in China surpassed Starbucks for the first time – a significant blow for the Seattle, US-based chain that is still struggling to crack the market. Starbucks were reportedly courting buyers for a portion of their China business as part of CEO Brian Niccol’s broader turnaround plans, but the company have since denied their Chinese stores are for sale. 

Although Luckin’s formula has proven to be successful at home, it remains to be seen if the same will happen here – especially with Starbucks having more than a 50-year headstart.

Sunday, May 25, 2025

In South Korea, Even Your Starbucks Cup Could Be Too Political










Walk into any Starbucks in South Korea right now, and there are some names you definitely won't be hearing. Six to be exact – and they happen to be the names of the candidates running in the upcoming presidential race. 

That's because Starbucks have temporarily blocked customers who are ordering drinks from using these names, which would be called out by baristas. 

The company said they needed to "maintain political neutrality during election season", adding that this would be lifted after the election on June 03. 

South Korean businesses and celebrities usually strive to be seen as neutral. But it has become more crucial in recent months, as political turmoil triggered by former president Yoon Suk Yeol left the country more divided than ever. Now, as South Korea gears up to pick its new president following Yoon's impeachment, even the most mundane things can become politicised – a lesson Starbucks have learnt the hard way. 

The coffee chain have been seeing an increasing number of customers ordering drinks through their app and keying in phrases such as "arrest Yoon Suk Yeol" or "[opposition leader] Lee Jae-myung is a spy" as their nicknames. Starbucks baristas had little choice but to yell out these names once the drinks were ready for collection. 

"Our goal is to make sure every customer has a great experience in our coffeehouses", Starbucks said in a statement about their new move to ban the six presidential candidates' names. 

"To help with that, we sometimes block certain phrases that could be misunderstood by our employees or customers – like names of political candidates with messages of support or opposition during election season to maintain neutrality". 

But this marks the first time they have banned the names of all the candidates running in an election. Besides Lee, the other names are Kim Moon-soo, Lee Jun-seok, Kwon Young-kook, Hwang Kyo-ahn and Song Jin-ho. 

Some think Starbucks have taken things a bit too far. 

"I think people are being too sensitive. What if your real name is the same as a candidate's?" said 33-year-old Jang Hye-mi. 

Ji Seok-bin, a 27-year-old who is a regular at Starbucks, said he thought the rule was "too trivial", though he said he understood the logic behind it given the country's heightened political tensions. "After [Yoon's impeachment] I don't really talk about politics anymore. It feels like the ideological divide has grown so much that conversations often turn into arguments".

Post-Trump tariffs, here's a good tip for Americans:


















NOTE: If you are from the US, you can enjoy a 10-day visa-free transit in China. 

Previously, visa-free transit was limited to 72 or 144 hours depending on the destination. China also added 21 more ports of visa-free entry and exit and five more destinations for visa-free travel.

Tuesday, February 25, 2025

A Bakery's "Faith-based Convictions" Are "Intentionally Discriminatory"

In the US, an appeals court ruled last week in a suit brought by California's Civil Rights Department that the owner of a bakery who refused to sell a generic wedding cake to a lesbian couple in 2017 violated the law.

The case stemmed from the marriage of Eileen and Mireya Rodriguez-Del Rio, who visited Tastries bakery in Bakersfield to buy a cake for their wedding in August 2017. 

The couple spoke with an employee and selected a pre-designed plain, white, three-tiered cake that the bakery often sells for various celebrations including birthdays and baby showers, according to court filings. 

When the couple returned with friends and family for a tasting the following week, Tastries’ owner Catharine Miller refused to sell the cake upon learning it would be served at a same-sex wedding. 

Miller is a devout Christian who also refuses to make cakes depicting marijuana use or sexual imagery. She later told the courts she has a bakery policy stating that “wedding cakes must not contradict God’s sacrament of marriage between a man and a woman”. 

The couple filed a complaint with the state Civil Rights Department, which sued Miller in 2018. Miller, who is represented by the Becket Fund for Religious Liberty, argued her policy was based on her religious beliefs about marriage, not hostility toward LGBTQ people.

A Kern County judge sided with her, ruling that Miller’s policy did not violate the state’s Unruh Civil Rights Act because it applies to all customers, and because Miller referred the couple to another bakery that had previously agreed to sell cakes to same-sex couples (but which the Rodriguez-Del Rios had already ruled out). 

The state appealed the decision last year, and a three-judge panel of the 5th Appellate District reversed it in a unanimous ruling. The judges ruled Miller’s policy is not neutral because it could only apply to customers on the basis of their sexual orientation. They also ruled that reproducing a plain cake with no writing or decorations that Miller would have sold to anyone else does not count as being forced to express support for a same-sex wedding. 

“Drawing the contours of protected speech to include routinely produced, ordinary commercial products as the artistic self-expression of the designer is unworkably overbroad”, the judges wrote. 

Miller, through a spokesperson at the Becket Fund, declined to comment. In a statement, her attorney and Becket Fund vice president Eric Rassbach said Miller would continue to run the bakery while they appeal the decision to the state Supreme Court.

Berjaya Food Bhd reported Friday their fifth straight quarterly loss, blaming pro-Palestine boycott against American brands as the reasons behind their financial struggles. 

The group, which operate the Starbucks and Kenny Rogers franchise in Malaysia, reported a pre-tax loss of RM67.09 million in the six-month period ending December 31, 2024. Their pre-tax revenue in that period was RM247.3 million – a whopping 46 percent steep fall from RM461.09 million in the same period the previous year.



Monday, December 9, 2024

Starbucks Under Siege

On May 15, 2020, Luckin Coffee were kicked off the Nasdaq after the buzzy Chinese coffee chain admitted that they had inflated their sales by over $300 million. 
 
The resulting scandal helped to spark a crisis that threatened $1.3 trillion worth of stock, as regulators decided to put the screws on auditing practices for US-listed Chinese companies. 
 
For US-based observers, the story ended there. But Luckin refused to surrender and they worked hard to restore their discredited reputation in their home market of China. 
 
By 2022, Luckin stores had overtaken the number of Starbucks outlets in China. Then in 2023, Luckin reported annual revenue of 24.9 billion yuan ($3.48 billion), surpassing Starbucks’ China revenue of around $3.16 billion. (Luckin’s revenue includes 30 outlets in Singapore).
 
It's a fact that Luckin Coffee have already and successfully challenged Starbucks' dominance in China. They recently reported a strong third quarter with sales rising 41% year over year to nearly $1.5 billion. And their operating margin came in at 15.3% in Q3 2024 compared to 13.4% in the same period last year.
 
And Chinese media reported in August that Luckin are considering further expansion into Southeast Asia, as well as the US. 
 
Hot on Luckin’s heels are another discount coffee chain, Cotti Coffee. Cotti were founded by Lu Zhengyao and Jenny Qian, also the founders of Luckin Coffee, who were ejected after the accounting scandal. 
 
Cotti have proved to be more aggressive in their global expansion, with outlets in 28 countries and regions including South Korea, Indonesia, and Hong Kong. Cotti opened their 10,000th outlet in October in Doha, Qatar.
 
Luckin and Cotti’s gain is Starbucks’ loss. China has been a key growth market for the US coffee chain as Chinese urban consumers flocked to buy their (relatively expensive) coffee. Yet Starbucks’ China sales have stagnated. 
 
In Malaysia, local brand ZUS Coffee needed just over four years to become No. 1. 
 
They quickly expanded to surpass US giant Starbucks in a market with over 3,300 branded coffee outlets, a figure expected to grow 4-5% this year, according to global coffee industry research platform World Coffee Portal. 
 
ZUS launched at the end of 2019 with a 200-square-foot (18-square-meter) kiosk in the Kuala Lumpur City Center area, according to Malaysian newspaper The Star, positioned themselves in the mid-priced segment, which was largely untapped at the time, aiming to make specialty coffee a daily necessity rather than a luxury.
 
As their popularity and presence grew over the years, ZUS Coffee became the largest coffee chain operator in Malaysia. They have 566 stores as of September 2024, surpassing Starbucks, which are in second place with 411 outlets.
 
And their revenues jumped from RM15.7 million ($3.5 million) in 2021 to over RM200 million ($45.3 million) in the fiscal year ending June 30, 2023, while their net profit surged from RM134,000 to RM10.2 million during the same period.
 
They're already eyeing the international market. They have opened more than 40 stores in the Philippines since entering the market last year. They've opened their first store in Singapore in October and launched in Bandar Seri Begawan, Brunei Darussalam late last month. And it'll be Pakistan's turn in the first half of 2025, it is reported.
 
It sure looks like Starbucks are under siege. And not only in China or Malaysia. 
 
America's largest coffee chain which have long reigned as the top coffee chain in America and beyond, are even now in major trouble in America.
 
In fact, for three quarters now, Starbucks' global same-store sales have been on the decline. 
 
On September 09, Chipotle's Brian Niccol stepped into Starbucks, replacing Laxman Narasimhan, who was the CEO for a year and a half since he succeeded Howard Schultz at the coffee chain, and thereby ending a rocky stint marked by slowing sales and a slumping stock price.

Monday, November 18, 2024

COMAC's Under-development C929 Secures 1st Buyer

China’s still-under-development and unseen, wide-body, 280-seat C929 jet found Air China as the first buyer at China's Zhuhai air show through a preliminary purchase agreement. 
 
The prototype of the wide-body jet has yet to be revealed and is far from the airworthiness certification stage. It is being built to compete with the Airbus 350 and Boeing 787 families. 
 
The order is more of a show of commitment to the domestic industry, as the customer deliveries are meant to start only around 2027. 
 
COMAC are already engaged in capacity building of the C909 (formerly the ARJ21) and the narrow-body C919. In the meantime, the long-range 250-to-320-seat wide-body twinjet airliner C929 is under development. And according to the EurAsian Times, COMAC have plans for the futuristic C939 as a competitor to the Boeing 777 and Airbus A350.

On Thursday, Berjaya Food Berhad, the operator of Starbucks Malaysia, reported a net loss of RM33.68 million for the first quarter ended September 30, 2024 (1QFY2025), compared to a net profit of RM19.03 million in the same period last year. 
 
This marks BFood's fourth consecutive quarter of losses. 
 
And revenue dropped 55.4 percent to RM124.1 million from RM278.5 million in the corresponding quarter, amid an ongoing boycott which has lasted more than a year. 
 
“Despite strong brand equity and active promotions, we believe the boycott headwinds will persist, at least in the near term, which will significantly impact earnings”, Hong Leong Investment Bank were cited by The Edge. 
 
In an effort to diversify, Berjaya Food have focused on expanding their other brands, including Paris Baguette and Krispy Kreme Doughnuts. 
 
However, Maybank Investment Bank noted that “meaningful earnings diversification will be slow” due to the company’s heavy reliance on Starbucks. 
 
Besides, increased competition in the industry is also expected to hinder the company’s earnings recovery, according to the research house.

Thursday, August 29, 2024

Fresh Malaysian Durians Sell Out in China

Word has it that Malaysian durians are already captivating the Chinese market, with the latest shipment of fresh durians selling out within hours of their arrival in China.
 

 




 
 
 
 
 
 
 
 
 
 
 
The positive news comes from none other than Mohamad Sabu, who shared his recent visit to Shenzhen, China on Facebook where he observed the packaging and distribution processes of fresh Malaysian durians by the Joy Wing Mau company. 
 
And during the Malaysian Minister of Agriculture and Food Security's visit to Sam’s Club and Ole supermarkets in the same city, Mohamad Sabu also witnessed the high demand for Musang King durians from Malaysia.
 
In another Facebook post yesterday, he wrote that in China, fresh durians from Malaysia are considered premium and are more expensive than durians imported from Thailand and the Philippines.
 
Starbucks Malaysia operator, Berjaya Food Bhd (BFood) reported a net loss of RM91.5 million for the fiscal year ended June 30, 2024 (FY2024) compared to a net profit of RM103.4 million in the previous year. The company's revenue also fell by 34.56 percent, dropping from RM1.1 billion to RM730.3 million. 
 
BFood said the decline is attributed to a consumer boycott as per the current sentiment related to the Israel-Palestinian conflict and a one-time loss from the sale of their entire stake in Jollibean Foods Pte Ltd.
 
CIMB Securities Sdn Bhd have forecasted a revenue contraction in the financial year 2025 (FY2025) due to sluggish sales recovery from the prolonged boycott and increased competition from established and new coffee chains. 
 
In a research note, they highlighted that this prognostication holds despite BFood’s plans to open new stores in Malaysia and the Nordic market next year.
 
The firm noted that BFood permanently closed three Starbucks outlets and temporarily suspended operations at 25 underperforming stores in Q4 FY2024 which ended June 30, 2024, due to the ongoing boycott. These closures contributed to a 5.8% quarter-on-quarter decline in revenue, bringing it down to RM130 million in Q4 FY2024.
 
As of Q4 FY2024, BFood operated 408 Starbucks stores and 60 Kenny Rogers Roasters outlets in Malaysia. 
 
However, CIMB noted a narrowing of BFood’s core net losses to RM0.1 million in Q4 FY2024 from RM31.1 million in Q3 FY2024, after excluding exceptional items totaling RM38.1 million. This improvement was attributed to better profit margins following the closures of non-performing Starbucks stores.
 
FYI, for Q4 FY2024, BFood reported a net loss of RM38.2 million, against a net profit of RM17.2 million in the same quarter the previous year (4Q FY2023).
 
In a separate analysis, Hong Leong Investment Bank Bhd in a note yesterday, said despite strong brand equity and active promotions, they expect boycott headwinds to stay, at least for the near term, which will greatly drag earnings. After all, Starbucks still make up a big chunk of BFood's revenue for Q4 FY2024 contributing 89 percent.

Sunday, August 25, 2024

Bizarre Backstory on Black Myth: Wukong

Undeniably, "Black Myth: Wukong" is a resounding success, having sold a remarkable 10 million copies in just 3 days. As well as an eye-watering three million concurrent players across all platforms. 
 
I don't know much about video games, nonetheless, I'm impressed by it. I daresay it has truly presented itself to be an incredible game.

As reviews poured in, it’s becoming clear that critics have generally enjoyed it. It garnered an 82 percent rating on OpenCritic, receiving praise for its sleek, cinematic visuals and exciting, high-octane combat scenes – but more importantly, it successfully translates the Chinese mythology of monkey god Sun Wukong into a compelling action RPG. 

Amidst it all, there is this bizarre backstory that alleged that Sweet Baby Inc., a Canadian narrative consultancy company had tried to blackmail Game Science to pay $7 million in "guidance fees", ostensibly to incorporate DEI (diversity, equity and inclusion) elements into "Black Myth: Wukong". And when the developer refused to pay up, it is claimed games media coordinated a campaign to attack the Chinese studio. Because, you know, journalists are corrupt and all that.

As a response to this rejection of their service, Rebekah Valentine, an IGN journalist wrote a hit piece accusing Game Science of fostering a culture of sexism and misogyny. However the write-up has been said to contain maliciously mistranslated tweets that were meant to paint Game Science in a negative way. 

To make matters worse, ScreenRant and Gamespot additionally doubled down in their reviews of "Black Myth: Wukong", referencing IGN's angry article on Game Science.

The Sweet Baby Inc. story has gained traction amongst gamers – it's all over Youtube which is where I first found out about this – but whether it is true or not, I really cannot tell. I did, however, track down an X post by @Pirat_Nation published June 14, 2024 on the subject in question but I should state here that it hardly works as proof.

But neither do I want to discount it. After all, many Western companies (e.g. American Airlines, Cisco, Disney, Johnson & Johnson, Microsoft, Novartis, Starbucks) have enthusiastically embraced the woke agenda and Sweet Baby Inc. may be one of them.

The above aside, I do know that there are many, many "diverse" characters in "Black Myth: Wukong" and amongst them:

I reckon this proves there is, indeed, DEI in "Black Myth: Wukong"! 

😛😛😛

Saturday, August 3, 2024

Starbucks Struggle As They Post Slower 3Q

It's not only McDonald's that are seeing a hiccup in sales and profits. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Starbucks too are under growing pressure from price-sensitivity in the US and fierce competition in China, the coffee chain’s third quarter results show. 
 
The US coffee giant saw total net revenue fall 1% year-on-year in the three months ended June 30, 2024 to $9.1 billion – albeit a 6% increase on the previous quarter. Global like-for-like sales declined 3%, while footfall fell 5%. 
 
Revenues in the US, Starbucks’ largest market with 16,730 stores, grew 2% year-on-year and 7% quarter-on-quarter to $6.3 billion. However, price rises contributed to a 2% fall in like-for-like sales and a 6% decline in transactions, with Starbucks also facing stronger competition in the US coffee to-go segment, particularly from fast-growing drive-thru coffee operators. 
 
Net revenues for Starbucks’ International segment declined 7% year-on-year to $1.8 billion, a marginal increase on the previous quarter, as competition from domestic chains and an increasingly fierce price war in their key growth market, China, continued to create challenging trading conditions. 
 
Sales in China fell 11% to $733.8 million following a 14% decline in like-for-like sales and 7% falls in both transactions and average ticket price. 
 
Starbucks also noted headwinds in the Middle East, Southeast Asia and parts of Europe, driven by "widely discussed misperceptions" (😂😂😂) about the brand. However, trade was positive in Japan and Latin America – markets described as displaying "significant strength". 
 
Despite lagging sales, Starbucks continued to expand globally, adding 526 net new stores to reach 39,477 sites across 86 markets. The coffee chain opened 130 and 213 net new stores in the US and China respectively – with the markets comprising 61% of their total global store footprint.
 
In China specifically, Starbucks now operate 7,306 stores – but face an uphill task to reach their planned 9,000 outlets in the world’s largest branded coffee shop market by 2025. 
 
The gap between the US coffee chain and China’s market leader, Luckin Coffee, has also widened. Beijing-based Luckin achieved 35% year-on-year sales growth in the three months ended June 30, 2024 to reach RMB 8.4 billion ($1.1 billion) and already reached 20,000 stores in July 2024. 
 
It is not incorrect to say that Starbucks’ struggles reflect consumer fatigue with high prices at food chains, restaurants and stores after years of price hikes.
 
In other words: Fewer people are going to Starbucks and buying drinks and food. It was Starbucks’ second-straight quarter of sales declines.👍👍👍

Wednesday, May 29, 2024

Boycotts That Impact Businesses

We continue to see boycotts of some American brands impact on their businesses.
 
On social media sites, lists are going around of brands accused of supporting Israel's Gaza offensive, which has killed at least 36,000 people, many of them women and children. The push is part of a larger Boycott, Divestment and Sanctions (BDS) campaign targeting Israel-friendly brands since 2005.
 
In Malaysia, three American brands in particular, Starbucks, McDonalds, and KFC have been boycotted and their businesses are significantly affected. 



 
 
 
 
 
Hong Leong Investment Bank research in a note on May 24, 2024, said Berjaya Food which own 100% of Starbucks Corp.'s Malaysian operations announced group revenue was down by -24 percent quarter-on-quarter and -48 percent year-on-year on the back of the Starbucks boycott that's been ongoing since October 2023. 
 
The group reported a net loss of RM29.7 million for the third quarter ended March 31, 2024. FYI, Starbucks Malaysia still make up a big chunk of BFood revenue for the quarter contributing about 90 percent.
 
In February, McDonald’s admitted that the Gaza war was part of the reason international sales rose by just 0.7 percent during the fourth quarter of 2023, down sharply from a 16.5 percent expansion during the same period the previous year. 
 
“The most pronounced impact that we’re seeing is in the Middle East and in Muslim countries like Indonesia and Malaysia”, McDonald’s CEO Chris Kempczinski said in an earnings call. “So long as this conflict, this war is going on […] we’re not expecting to see any significant improvement”.
 
The Malaysian franchise holder for KFC, QSR Brands (M) Holdings Bhd. were compelled to temporarily close more than 100 outlets, citing “challenging economic conditions”, as consumers in the Muslim-majority nation persist with a months-long boycott against brands perceived to have links with Israel. 
 
Methinks, it's time to go local! Support ZUS Coffee, Tealive, Ramly Burger, Marrybrown, 'Q' Bistro and Pelita nasi kandar, to name some of the well-established Malaysian brands.
 
Celtic beat Rangers 1-0 in a Scottish Cup final on Saturday with a 90th-minute winner from Adam Idah as the former completed the league and cup double. 
 
The match was by no means a classic and seemed destined for extra time when Idah, who joined the club on loan from Norwich City earlier this year, was in the right place at the right time to score and give Celtic a record-extending 42nd Scottish Cup triumph.

Tuesday, May 28, 2024

Durian Latte

They’re spiking their drink!
 
Coffee has become the latest canvas for including seemingly incongruous ingredients like butter, olive oil and even meat, like Starbucks’ notorious pork latte in Shanghai, China. 
 
As the espresso splicing trend percolates, in the US, of all places, New York City's East Village fruit-centric coffee shop Not as Bitter has concocted possibly the wildest rocket-fuel hybrid to date: the durian latte. 
 
Not as Bitter owner Jeffrey Wang said its unique flavor translates surprisingly well to the latte, which is reportedly a top seller. 
 
“That drink tastes very [good] because it’s sweet”, the bold barista, who hails from Tianjin, China, told The New York Post. “It just adds a flavor to the coffee and then some creaminess to it”. 
 
Step aside, pumpkin spice.
 
The $8.50 durian latte is essentially like a funkier coffee cocktail – not as Bitter’s dark interior on East 10th Street even evokes a speakeasy – with undiluted durian purée, coconut milk, simple syrup and two shots of espresso sourced from Guangzhou, China-based roasters. 
 
Wang and company select the whole fruit daily from special vendors that procure them from either Malaysia or Thailand and then prepare the smelly sweetener on-site – no prepackaged powders from concentrate here. 
 
Any durian not used by the close of business day is tossed, which stings given that there’s up to $2 worth of fruit in each cup. 
 
“The only way you can taste the fruit is by putting that much, and because the puree is 100% durian, there is nothing else”, Linda Wang, co-founder of Not as Bitter’s parent group UME Hospitality Group, told The Post. 
 
The fruit’s presence is so strong that when you suck the coffee through the straw, hunks of durian hit the back of your throat like pungent bubble-tea pearls. The finish, meanwhile, is surprisingly sweet, evoking a tangier, more aromatic mocha base that belies the fruit’s supposedly overpowering pong. 
 
Cutting coffee with fruit is nothing new. The Not as Bitter crew was inspired by a trend in China, where macchiato mixologists have combined coffee with fruit and beyond. The pairings might sound strange, but Chinese gourmands believe that tropical chasers “balance out the so-called bitterness in coffee” for the local palate, according to Linda – hence the shop’s name.
 
And the durian latte appears to be paying off, given that the fructose-infused fuel is the shop’s “top seller”, according to Linda. 
 
“It sells a lot more coffee than all the other fruit ones combined”, she added. 
 
But Jeffrey said the “king of fruit” is an acquired taste. 
 
“Honestly, not everyone can handle the taste of that”, he explained. “I’ve had customers ask me what the most popular flavor is, and I would tell them that our best seller is fresh durian, and they would want to try that, but they never had durian before. 
 
“I got two or three customers come back to me and said, ‘Oh, no, I cannot do it. Never again'”.
 
I wanna try! How about it, Malaysia?

Sunday, May 19, 2024

Starbucks Sue Siren-themed Coffee Brand Again

There's a dispute over the "siren" logo between Starbucks and an Alaskan, US-based coffee and apparel company and it has been ongoing for six years now.
 
Starbucks are again suing the said company, Mountains and Mermaids. The former kind of half won a previous case in which they argued that the company's Siren's Brew coffee brand could confuse consumers. 
 
But now they're complaining that the company are continuing to sell coffee using the fish-woman name and imagery. The original hand-drawn Starbucks logo was created in 1971. The brand identity has evolved since then, but the logo continues to show a siren, which Starbucks thinks should prevent other brands from mixing the mythical sea creature with caffeinated beverages. 
 
FYI, the idea behind the logo was that it was believed that sirens lured sailors with their beautiful voices to a shipwreck off the coast. Drawing on this as inspiration, the founders wanted to give off the idea that Starbucks seduces coffee lovers.
 
The case goes back to 2019, when the United States Patent and Trademark Office (USPTO) rejected Starbucks' attempt to trademark the Siren's Blend name because Mountains and Mermaids had already trademarked Siren's Brew. [Note: Starbucks had introduced a new coffee, Siren’s Blend, on September 24, 2019!] 
 
Starbucks were miffed about that. They filed an opposition to Mountains and Mermaids' trademark, arguing that even the use of the word "siren" in relation to coffee infringed on their brand, not to mention imagery of the said siren drinking coffee.
 
Despite significant differences in style, the Seattle coffee giant argued that Mountains and Mermaids' illustrations of sirens play on their own logo design. They also claimed that the word "siren" is used as a verbal shorthand for Starbucks and thus constitutes a de facto trademark. 
 
They also complained about the brand's apparel, which features phrases like "A siren needs her morning coffee before a long day of wrecking ships & drowning men".
 
The result was mixed. USPTO's Trademark Trial and Appeal Board (TTAB) found that Mountains and Mermaids sirens could cause confusion when it came to coffee but not when it came to the clothing. 
 
Starbucks then offered to cover Mountains and Mermaids' costs if they would file a trademark for "Mermaid's Brew" instead of "Siren's Brew". The company turned down the offer.
 
And so, Starbucks are now seeking to stop them from using the Siren's Brew name and imagery.

Sunday, January 7, 2024

McDonald's (And Starbucks) Take a Sales Hit

After Starbucks, McDonald's too have admitted they are seeing a "meaningful" hit to business, as customers in the Middle East and elsewhere boycott the fast-food behemoth for their perceived support of Israel. 

Chief executive Chris Kempczinski acknowledged the impact in a LinkedIn post, blaming the backlash on "misinformation". 

"This is disheartening and ill-founded", he said. "In every country where we operate, including in Muslim countries, McDonald's (are) proudly represented by local owner operators". McDonald's rely on thousands of independent businesses to own and operate most of their more than 40,000 restaurants around the world – and about 5% are located in the Middle East. 

Since the Hamas-Israeli war began, the McDonald's corporate headquarters have tried to keep a low profile regarding the conflict. But their brand still gets entangled. It was sparked by McDonald's Israel boasting they had given away thousands of free meals to members of the Israeli military. 

The move sparked grassroots calls for boycotts of the brand by those angered by Israel's military aggression in Gaza, prompting owners in Muslim-majority countries such as Kuwait, Malaysia and Pakistan to put out statements distancing themselves. 

The post from Kempczinski comes as tensions over the boycotts have escalated. 

The pro-Palestinian Boycott, Divestment and Sanctions (BDS), which had not formally targeted McDonald's, this week officially called for a boycott of the brand. The move came after McDonald's Malaysia, which are backed by a Saudi entity, sued the Malaysia BDS group for $1.3 million, citing "false and defamatory statements" that they said had hurt their business. 

BDS called McDonald's to cut ties with their franchisee in Israel as well as in Malaysia, unless they dropped the lawsuit. 

"Instead of pressuring (their) parent company, McDonald's Corporation, to terminate (their) shameful franchise agreement in Israel, McDonald's Malaysia and (their) Saudi owner are desperately trying to silence voices of peaceful solidarity with the Palestinian liberation struggle in Malaysia", the group said. "We cannot let this pass. Let's show McDonald's what grassroots boycotts can do".

McDonald's declined to comment on the lawsuit, referring back to the post. In his message, Kempczinski said: "We abhor violence of any kind and firmly stand against hate speech, and we will always proudly open our doors to everyone".

And in the US especially, Starbucks became the target of pro-Palestine boycotts after they sued the Starbucks Workers United union in October over a social media post in support of Palestine. CEO Laxman Narasimhan, in a letter to employees, noted many of Starbucks' stores have experienced incidents of vandalism, and added the company are working with local authorities to ensure the safety of their workers and customers.

The coffee chain won’t yet say how their sales have been impacted. The company’s next quarterly sales report won’t come out until February, but there are indications Starbucks are taking a sales hit. 

In an early December report, JP Morgan analyst John Ivankoe lowered his US sales forecast for Starbucks’ fiscal first quarter, saying holiday sales appeared to be slower than promotions in the fall. Starbucks' share price tumbled on the news. 

Meanwhile, videos posted on X show protests and empty stores in London, Dubai and elsewhere.