Starbucks' philanthropic arm and regional operating company for the Middle East and North Africa announced Tuesday it will donate $3 million to food charity World Central Kitchen as the American coffee giant struggles with the economic fallout from the war in Gaza.
Kuwait-based Alshaya Group, which operates approximately 1,900 stores in the region, and the Starbucks Foundation donated $3 million to World Central Kitchen in March to provide one million meals to people in the Gaza Strip. I promised to do it. Alshaya Group said in a statement that the organizations also announced an employee donation matching initiative to raise funds for food aid in Gaza through aid organizations. By comparison, World Central Kitchen's aid shipment from Cyprus in late March brought the equivalent of one million meals.
Earlier this month, seven World Central Kitchen aid workers were killed in a widely condemned Israeli airstrike in the Gaza Strip. A subsequent investigation by the Israel Defense Forces concluded that lapses in judgment and failure to follow instructions led to the deadly attack. The Israel Defense Forces fired two reserve officers and sanctioned two commanders over the incident.
In a statement following the findings, World Central Kitchen said the Israel Defense Forces investigation showed “important progress” but that the military needed to implement “systemic changes.” It called for an independent commission to more thoroughly investigate the deaths.
The charity said it had suspended operations in the area following the death of a staff member. The organization did not immediately respond to Al-Monitor's request for an update.
Alshaya's statement said the $3 million promise was made before the strike. Alshaya Group has expressed its support for World Central Kitchen as it evaluates the organization's efforts in the region.
“Our hearts go out to the World Central Kitchen team in Gaza and their families around the world,” Alshaya said in a statement announcing the donation. “While the organization is taking time to re-evaluate when to resume operations in the region, our commitment remains unwavering.”
Why it's important: Both Starbucks and Alshaya are experiencing financial difficulties related to the Gaza war. Alshaya announced in March that it planned to lay off more than 2,000 people, or about 4% of its workforce, due to “continued difficult trading conditions over the past six months.”
Starbucks has faced boycotts since the start of the war over its perceived support for Israel, but the issue predates the current conflict. Starbucks, particularly former CEO Howard Schultz, has long been accused of supporting the Israeli government, a charge the company denies. In 2014, Starbucks issued a statement saying that neither it nor Schulz provided any financial support to the country. Starbucks closed its Israeli stores in 2003, citing “operational challenges” in the market, according to a company fact sheet.
In an update on Monday, the United Nations Office for the Coordination of Humanitarian Affairs said 1.1 million people in the Gaza Strip face “catastrophic levels of food insecurity.” Before the start of the war, this enclave was home to more than 2 million people.
Earlier this month, after a telephone conversation between US President Joe Biden and Israeli Prime Minister Benjamin Netanyahu, Israel approved the reopening of the Erez border to northern Gaza. The conversation was the first between the two leaders since the killing of the World Central Kitchen employee.
Learn more: Starbucks is not the only company facing challenges related to the Israel-Hamas war. Earlier this month, McDonald's Israeli operating company agreed to sell the business to its parent company.
McDonald's has faced calls for a boycott from pro-Palestinian activists since the start of the war. In October, McDonald's in Israel attracted attention when it provided meals to Israeli soldiers.
The American fast-food giant's various franchises in the region have responded differently to the war. The Gulf, Jordan and Turkey franchisees issued statements cutting ties with Israel's franchisees after feeding soldiers and pledging aid to Gaza, Reuters reported at the time.
