Alshaya Group halts stake sale in Starbucks MENA amid easing boycotts

KUWAIT – Kuwait-based Alshaya Group has suspended plans to sell a minority stake in its Starbucks Middle East and North Africa (MENA) franchise business, citing a reduction in customer boycotts across the region. 

The decision to sell approximately 30 percent of the franchise business first emerged in February 2024, following heightened geopolitical tensions that led to widespread boycotts of Starbucks and other Western brands in the region.  

However, speaking at The Retail Summit 2025 in Riyadh, Saudi Arabia, Alshaya Group CEO John Hadden confirmed that the discussions had been put on hold. 

“At the moment, we are just simply focused on serving our consumers every day,” Hadden stated, noting that customer activity had begun to improve since late 2024. 

Previously, Alshaya Group had been in talks with Saudi Arabia’s sovereign wealth fund over a potential sale. US private equity firm Apollo Global Management Inc. and Saudi Arabia’s Public Investment Fund (PIF) had also been identified as potential investors in the licensed Starbucks business. 

Alshaya Group has been Starbucks’ exclusive franchise partner in the MENA region since 1999, growing the business to over 2,000 stores across 13 markets.  

In October 2023, the company announced plans to open 250 new Starbucks outlets annually, with a target of reaching 3,000 stores by 2028.  

Alshaya also operates other global food and beverage brands such as Chipotle, Dean & Deluca, Le Pain Quotidien, and Pizza Express. 

Meanwhile, Starbucks has implemented significant leadership changes amid efforts to revitalize its business.  

The company announced the departure of its North America president, Sara Trilling, as part of a restructuring led by CEO Brian Niccol.  

Mike Grams, former chief operating officer of Taco Bell, has been appointed as North America chief stores officer, overseeing retail teams and store performance. 

Additionally, Starbucks’ supply and customer solutions chief, Arthur Valdez, will be leaving the company.  

These moves come as Starbucks works to streamline management, reduce wait times, and implement a new “coffeehouse code of conduct” aimed at making stores more welcoming to customers. 

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