Alshaya Group manages Starbucks outlets across thirteen MENA countries. Credit: Sorbis / Shutterstock.

Alshaya Group, the retail operator of Starbucks in the Middle East and North Africa (MENA) region, has put on hold its plans to sell a minority stake in the franchise, Reuters has reported.

The decision to pause the sale of a 30% stake comes amidst ongoing customer boycotts of the coffee chain in the region.

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The potential sale of the minority stake is set against a backdrop of sustained boycotts against US-based Starbucks in the MENA region, which the company believes stem from “misconceptions” about its stance on the Gaza conflict.

Licence partners Berjaya Food and Alsea have cited protests and negative consumer sentiment as significant contributors to declining revenues in 2024, World Coffee Portal has reported.

In December 2023, in an attempt to clarify its position and counter the spread of “inaccurate information”, Starbucks introduced a new section on its website titled Starbucks for the Record.

In April 2024, Starbucks, in partnership with the Alshaya Group, committed $3m to World Central Kitchen to provide one million meals to families in Gaza.

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Established in 1890, Alshaya Group manages Starbucks outlets across 13 MENA countries, including Bahrain, Egypt, Qatar, Saudi Arabia and the UAE, as well as in Kazakhstan and Azerbaijan.

The group also holds licences for food and beverage brands Chipotle, Bouchon Bakery, Dean & Deluca, Le Pain Quotidien and and Pizza Express.

In March 2024, AlShaya Group announced plans to lay off 2,000 employees.

The job cuts commenced on 3 March 2024 and were primarily within its Starbucks franchise across the MENA region.