Consumer Boycotts and Fast-Food Chains: Economic Consequences and Reputational Damage

Abstract

The increasing avoidance of international fast-food chains is a widespread phenomenon influenced by economic, social, and political factors. This study examines the risks and implications of restaurant boycotts, focusing on their role in social justice movements and economic shifts. The authors employed the qualitative approach; using an exploratory case study and a critical discourse analysis, we investigated consumer motivations for avoidance, the financial and reputational risks businesses face, and how corporate responses shape brand perception. By integrating political consumerism and social justice theory, we provide a comprehensive framework for understanding the psychological, ethical, and economic drivers of boycotts. The findings highlight that boycott behavior significantly impacted declining sales and profits for McDonald’s and Starbucks and forced the closure of outlets, as well as leading to the loss of consumer trust and long-term brand loyalty. Thus, it forced companies to create strategies for protecting their reputation. Consumer activism, which draws from social justice and ethical consumerism, demonstrates its capability to affect corporate policy choices and business practices in sensitive political situations to fight injustices. This research offers valuable insights for business leaders navigating consumer activism, emphasizing the need for proactive corporate responsibility strategies to mitigate the risks of reputational damage and declining consumer trust.

1. Introduction

Tourism is a global industry that supports peace [1] and intercultural understanding [2]. Furthermore, it brings people together in host–guest relationships [3]. It promotes the understanding of cultural differences and aims to peacefully overcome local and global problematic institutions [4] to meet SDG 16: peace, justice, and strength. It also serves as a political and ethical tool that links tourism consumption with political and ethical issues [5]. The avoidance behavior (i.e., boycott) has affected global companies such as Starbucks, which caused economic downturns for the company reaching USD 11 billion, and these losses are the first of their kind since its launch in the markets [6]. Furthermore, McDonald’s Egypt revealed that the chain’s sales fell by 70%, and its net profits decreased from USD 2.22 billion, or USD 3.17 per share, to USD 1.98 billion, or USD 2.68 per share due to boycotts [7]. Americana Restaurants International also announced a 52% decline in its profits during the first quarter of 2024 to USD 28 million, compared to USD 58.1 million in the corresponding period of 2023; its revenues also declined during the first quarter of 2024 by 16.3% to USD 493.5 million, compared to revenues of USD 589.4 million [8].

Global events have influenced tourists’ behavior, leading them to avoid patronizing some tourist destinations [9]. Furthermore, certain customers have boycotted some companies because they have supported human rights violations [10]. Boycotts are the oldest form of political consumption, urging consumers to refrain from purchasing certain products, brands, or services to achieve certain goals [11]. Consumers forego purchasing certain products, brands, or services based on their undesirable characteristics or support an activity that conflicts with their political or moral values [12]. The support of global restaurant chains for human rights violations and the failure to achieve equality and social justice hurts consumer attitudes, trust, and purchase intentions [13,14].

Boycotts are seen as nonviolent individual or collective action that can force restaurant chains to change their unfair behavior [15]. Internal or external factors may lead to a boycott. Internal factors include psychological variables such as attitudes, hostility, or betrayal [16]. External factors include evidence that the organization has engaged in wrongdoing in ways that have caused harm to others [17]. This leads to the consideration of the principles of sustainability and justice in decision-making processes and tourism practices [12,18].

The theoretical lenses that the current study is based on are political consumerism [19,20] and social justice theory [21], constructing a framework for clear research regarding boycotts’ impacts on global chain restaurants concerning the case of Palestine. Political consumerism explains how consumer boycotts use purchasing power to mandate changes in corporate behavior and promote ethical enterprise practices as being an active form of political consumerism [22]. These boycotts are currently being used to push global restaurant chains that support violations against Palestinian citizens to change their policies to not supporting these violations [7].

Similarly, social justice theory underpins these boycotts within a larger frame of pursuits of fairness and equity, with an emphasis on a consumer-led movement that plays a leading role in challenging and righting injustices [17]. A combination of these theoretical standpoints would allow one to gauge how consumer activism relentlessly puts pressure on multinational companies to be more ethical in their policies, even as it engenders wide transformations in corporate behavior and strategy concerning social justice imperatives. This holistic approach gives an understanding of the detailed impacts such boycotts have on the financial performance and ethical behaviors of international chain restaurants (ICRs) [23] with a special respect to recognizing and correcting human rights abuses [24].

Multiple research gaps identified in previous studies motivated this investigation. Although the phenomenon of boycotting has been meticulously examined as a mechanism of political consumerism [25], most of the existing studies are focused on the motivational and ethical dimensions of the individual consumer [26,27,28]. The analysis of the economic effects and social justice features that result from restaurant boycotts targeting ICRs is still unexplored. Additionally, previous studies have been devoted to the effects of boycotting on brand image [29] and brand loyalty [30], while the investigation of the interplay between consumer activism and the economic influence for ICRs is ambiguous. Furthermore, research has scarcely examined how boycotts make businesses act more ethically and responsibly, both in general and specifically in sociopolitical contexts, such as that of boycotting in the Arab and Islamic world, which has been occurring since the beginning of the unethical practices against the violation of human rights in Gaza until now. Although undertaken with escalating frequency to advance human rights [23,31] and social justice [32], there are scant studies reflecting the impacts such boycotts have on the operational and financial structures of ICRs, including the levels at which they may be a driver of change in corporate policy and practice. Thus, the current study, to the authors’ knowledge, is the first study investigating the consumer boycotts of ICRs and their impact on ICRs’ sales, strategies, and support of justice.

In addition, existing research on political consumerism is dominated by Western countries [33]. Hence, this study provides a novel contribution to the current literature by revealing the specific mechanisms of restaurant boycotting within the Arab–Islamic contexts, where matters of social justice are so unavoidably entwined with both religious and political identities.

The current study motivated the authors to fill the gaps identified by integrating two related theories into a single comprehensive study, thereby advancing the theory and the practice of the boycott phenomenon. The study’s aim was divided into four objectives: (1) To explore the perceived economic impacts of boycotts on ICRs, as reflected in publicly available textual data (e.g., news reports, company statements); (2) To explore how boycotts against ICRs are framed and justified as a means of supporting social justice in the context of the Israeli–Palestinian conflict; (3) To identify and analyze the discursive strategies used by ICRs in response to boycotts, as evidenced in their public communications (e.g., press releases, social media posts); (4) To identify key themes and emerging trends related to consumer boycotts of ICRs, and to discuss potential implications for future research and corporate social responsibility practices.

Therefore, this study has key contributions toward consumer activism and corporate responsibility. First, this study bridges a crucial gap in research studies by focusing on the economic impacts and social justice considerations of boycotts on restaurants, particularly international chains. Secondly, beyond prior studies on reputation and customer loyalty to brands, the current study delves further into how such boycotts impact financial performance and promote ethical corporate behavior. Thirdly, it situates the whole aspect within the larger domain of sociopolitical practice, especially within the Arab and Islamic contexts, whereby boycotts have been used regarding human rights and social justice considerations. Fourthly, it provides an important angle toward the contribution of business research while emphasizing the effect of such movements on international business practices and corporate strategy. Finally, this study offers some practical implications for business organizations and policymakers on the best approaches to engage with and respond to consumer-led activism while integrating elements of the economic and the nature of ethical boycotts.

2. Literature Review

2.1. Conceptual Framework of Boycotts

Boycotts as leading forms of political consumerism [34] are a significant expression of consumer activism, in which either individuals or groups specifically refrain from purchasing certain goods or services to influence corporate policy concerning an ethical and socially responsible approach. Thus, it leverages the economic power of consumers to pressure companies to align their practices and policies with the demands of their customers [35,36] and achieve social, political, or ethical goals [26,37]. It is a proactive approach to influencing corporate behavior and advancing social justice [38].

Furthermore, boycotts can be facilitated by personal efforts, social movement organizations, and pressure groups that use mass and digital media to raise customers’ awareness and organize international campaigns [38,39]. Social media’s power is most visible in its ability to disseminate information, organize widespread public support, and influence certain corporations directly [25]. In addition, ethical reasons are significant factors to motivate customers to engage in boycotting [26] in order to address the human rights violations [40]. Sociopolitically relevant boycotts may be organized against restaurant chains that support human rights abuses related to Palestine [25].

2.1.1. Political Consumerism

Political consumerism is the phenomenon in which customers’ consumption of their preferred goods is based on ethical, political, or social values and norms [41], which goes beyond simple economic transactions by associating market practices with social activism. Thus, it reframes engagement in political activism as making daily purchasing decisions [42] that influence corporate behavior and policies through rewarding or punishing companies [43].

On an international level, it promotes extensive boycott formation processes within restaurant franchises [44,45]. Consumers may boycott restaurants to protest in response to unethical practices, such as human rights violations or environmental damage [46]. Seyfi, Hall, et al. [40] highlighted how political consumerism has been mobilized against major brands to protest their perceived complicity in geopolitical issues, illustrating the association between consumer behavior and sociopolitical activism. For example, ICRs have been criticized for supporting wars and human rights violations in relation to conflicts, such as the one currently ongoing in Palestine [47]. Thus, successful campaigns have targeted international chains of restaurants that are seen as supportive of or failing to demonstrate opposition to the Israeli occupation [7]. Such boycotts motivate consumers’ efforts to use their purchasing power as a lobbying approach, with the aim of influencing corporations’ policies and practices to be more responsible and ethical [48], and as a political consumerism force that aims to align corporate behavior with concerns over international human rights [49].

Through political consumerism, consumers leverage their purchase decisions to demonstrate their backing or condemnation of businesses that align or do not align with their political and ethical ideals. The approach demonstrates how people show their opposition through consumer activism via boycotts directed at restaurants, which are used to demonstrate their objections towards human rights violations and geopolitical disagreements.

2.1.2. Social Justice Theory

Social justice theory focuses on the concepts of reciprocity, equality, social justice, and the rights of people in society [50]. In addition, it is the basis of all social justice initiatives, activities for the defense of rights, or actions to improve the living quality through lobbying for equality, non-discrimination, and full freedoms [21,51]. Socialism in consumer behavior is revealed through protesting the oppression of economic, environmental, and human justice [48,52].

Boycotts are closely associated with social justice theory as they offer a means to react against injustices perceived, present a change [40], and support human rights and ethics [53,54]. Thus, they pressure corporate strategies to achieve fairness by utilizing customers’ purchasing power [55]. Also, ICRs were criticized for unfair practices, such as employee exploitation, environmental degradation, and human rights violations [34,56].

As activists of social issues, consumers must apply social justice theory to the ICRs that support unethical conduct in sensitive political regions such as Palestine [57,58]. For example, consuming only independent products and ignoring large brands that contribute to the occupation of territories in Palestine is a part of the general concern with people’s rights [23]. Supporting these boycotts is not just an economic decision, it is a moral decision to contribute to change and modify the current social framework by rejecting service providers who support discriminatory and oppressive practices. Such boycotts are not only about financial results but also about creating awareness, sharing people’s opinions, and possibly affecting the decisions of corporations and governments [59].

Social justice theory provides substantial ethical grounds to study consumer boycotts based on the principles of fairness and equality, combined with human rights protection. The initiative positions consumer boycotts as ethical decisions directed against oppression while working towards justice.

2.1.3. Integrating Political Consumerism and Social Justice Theory

Combining political consumerism with social justice theory provides essential elements for a comprehensive analysis of consumer boycotts. Social justice theory adds value to understanding consumer motivations by analyzing the rational motives that drive their behavior [50]. Political consumerism defines the concrete methods consumers employ when using their purchasing power to choose certain goods and reject others [22]. A political consumerism approach provides a systematic approach to exploring boycott strategies and their impact on modern economies. This framework seeks to explain all aspects related to the ethical and moral motivations behind consumer behavior. By utilizing these two theories, it becomes possible to understand the impact of human rights and justice issues on political boycotts, particularly in the global fast-food industry [48].

Social justice theory establishes solid foundational principles that explain the reasons for this activity, but it does not precisely describe what consumers do to influence companies. Social justice theory establishes ethical standards for behavior, but it does not fully explain the actual processes consumers can use to exert economic pressure through boycotts [54].

This study advances the understanding of this phenomenon through the combined application of political consumer theory and social justice theory. This combination explains the causes of consumer behavior and their ultimate actions. The combined research framework provides deeper insights into how consumer activities influence corporate accountability as they pursue social justice in the context of the Israeli–Palestinian conflict, demonstrating that social values influence personal purchasing decisions.

The current study applies political consumerism to social justice theory to understand boycott practices better when analyzing international chain restaurants (ICRs). The study of political consumerism allows the assessment of consumer approaches, yet social justice theory deepens this analysis by validating consumer decisions with universal moral values of justice and human rights. This combined approach strengthens the explanatory capability of the conceptual framework while supporting the study’s research focus on consumers who willingly take ethical positions in sociopolitical conflicts like the Israeli–Palestinian matter.

2.2. Economic Impacts of Boycotts on ICRs

2.2.1. Financial Consequences

Economic effects are the most studied effects and have been proven by empirical research into boycotts on ICRs to show the revenue losses and negative impacts created by consumers on market indicators [60], such as decreases in sales and market value [29]. For instance, Starbucks’ market value was reduced by about USD 11 billion because of long-term boycotts attributable to the following issues [6]. Such financial repercussions can only emphasize the fact that consumer activism is the most effective means by which to influence corporations’ profitability.

2.2.2. Impact on Corporate Strategy and Behavior

Generally, boycotts entail certain negative financial implications that require corporations to change their policies and strategies, such as by increasing their level of transparency or responding to the ethics that triggered the boycott [30]. Thus, they attempt to mitigate the economic loss as a result of their customers’ activisms [55]. Economic pressure can be considered as a push factor that leads companies to enhance their ethical policies and corporate social responsibility measures and, thus, show how the concept of financial incentives influences the behavior of companies [26].

Research into financial losses resulting from boycotts reveals how consumer activism creates a substantial economic impact on international chain restaurants. An empirical study demonstrated revenue declines, with Starbucks losing USD 11 billion in market value, but this subsection concentrates mostly on financial cost implications. This investigation should include the examination of lasting impacts on brand reputation and consumer trust because these results can exceed short-term market losses. It examines in detail how consumer boycotts impact both corporate recovery and customer loyalty after boycotts occur, specifically for international chain restaurants. Businesses need a comprehensive strategy, which can be created by analyzing long-term effects to better predict their strategic position following boycotts.

This research used political consumerism and social justice theory to investigate international chain restaurant boycotts through the following research questions:

(1)

How do boycott actions against international chain restaurants affect their economic performance according to publicly posted textual data, including business statements and news reports?

(2)

What arguments do people use to understand why ICR boycotts advance social justice during the Israeli–Palestinian conflict?

(3)

What are the discursive strategies used by ICRs in response to boycotts, as evidenced in their public communications?

(4)

What are the key themes and emerging trends related to consumer boycotts of ICRs?

3. Methodology

3.1. Study Context

Using the lens of economic and social justice, this study explores boycotts of ICRs due to human rights violations in Palestine. These boycotts were based on a complicated sociopolitical framework anchored in the humanitarian fight for human rights for Palestinians. In the same vein, as with the call to boycott Myanmar due to the military regime [61], the boycott of ICRs for human rights in Palestine expresses consumers’ activism, which opposes the corporate support of practices regarded as immoral or unfair by consumers. Various stakeholders, such as international and local human rights organizations, pro-Palestine activists, and civil society groups, have actively sought to popularize these boycotts as a tool for forcing certain changes in the behaviors of companies for social justice [7]. The current study delves into understanding the boycotts’ effects on the revenues of ICRs within this broad sociopolitical framework and how they ultimately shape restaurant chains’ policies.

This study examines the growing phenomenon of consumer boycotts of global fast-food chains. Modern global awareness and globalization have led consumers to use their purchasing decisions to convey political and social messages [19]. Practitioners of political consumerism make their purchases based on ethical, social, and political considerations [41]. Boycotts are a crucial political consumer tactic, in which consumers intentionally avoid purchasing products or services from companies that engage in unacceptable practices [34].

This study examines global fast-food chains for salient reasons. Fast-food restaurants occupy international positions that reflect Western power and economic developments and exist as prominent multinational corporations [12]. The symbolic nature of international fast-food restaurants makes them popular targets when consumer activists choose to take action, particularly during times of heightened political and social conflict. The fast-food sector has faced a major boycott movement due to its involvement in the Israeli–Palestinian conflict, according to Buheji and Ahmed [7] and Seyfi, Hall, et al. [40]. Additionally, boycotts targeting the fast-food industry have been organized through websites and social media by boycott movements, and as a result, some investments in conflict zones have been dismantled and sanctions imposed [23].

The size of the fast-food restaurant industry in the global market makes its study critical. Investigating the effects of boycotts on major fast-food chains reveals the opportunities available for consumer behavior to modify these restaurants. This type of restaurant was also chosen because most of their financial statements and economic statuses are available online. Information about these restaurants is also readily available, and numerous articles and discussions are available online or on social media [62]. This study aims to identify new developments related to this phenomenon, as there are many previous studies that need updating.

Finally, this study investigates how boycotts impact fast-food restaurants that endorse human rights violations. This research builds on previous studies examining boycotts in the restaurant, tourism, and hospitality sectors [25]. By focusing on a specific industry sector, the research provides an in-depth exploration of how consumer activism and social justice issues combine to shape corporate responses. This research examines the economic costs of ICR boycotts, as well as the reputational damage they cause, to examine the power of political consumerism in the 21st century and its limits on society.

3.2. Research Approach

The current study focuses on understanding the multifaceted dimensions of the ICR boycotts concerning social justice and business outcomes. This study uses the case study approach and a critical discourse analysis (CDA) to understand the intricate roles and dynamics involving consumer activism, corporate engagement, and the sociopolitical context of the boycotts. Exploratory case studies are particularly appropriate to studies that aim to analyze phenomena in real life, particularly in examinations of how and why questions, which require a detailed and integrated approach [63]. The current study employed a CDA and followed Fairclough’s [64] three-dimensional framework. It involves what has been described as the linguistic analysis, in which different linguistic patterns and registers of texts are identified; the interpretation of the practices of the discourse, in which the relationship between the social practices and language practices are examined; and finally, the explication of the explicit sociopolitical context that is inherent in the text [65,66,67].

This research relied on a qualitative case study exploratory approach that examined various textual documents to answer the research questions. Quantitative data on the effects of financial boycotts and measures of social justice are ideal but difficult to obtain or rely on, especially when it comes to sensitive political issues and multinational corporations. Analyzing social boycotts becomes meaningful through the qualitative exploration of public representations because these methods properly explore the complex patterns involved. The traditional critical discourse analysis pioneered by Fairclough [64] and the qualitative content analysis approach employed by Esfehani and Walters [68] share common principles for investigating language-based, meaning-making processes.

The data for this study include a variety of publicly available texts, including (1) news articles from credible international and regional news sources covering boycotts and their impacts; (2) company press releases, annual reports, and official statements providing insights into corporate responses and strategies; (3) social media posts from individuals, activist groups (such as the Boycott, Divestment, and Sanctions (BDS) movement), and organizations involved in boycotts reflecting public opinion and mobilization efforts; and (4) relevant reports or analyses from organizations monitoring human rights or corporate social responsibility. This research used these sources based on their relevance to the research questions, along with their credibility and availability.

A critical discourse analysis together with a thematic analysis served as the deductive methods with which to assess these textual data sources. The analysis of recurrent patterns alongside key concepts relied on the thematic analysis, as described by Esfehani and Walters [68]. By applying Fairclough’s [64] three-dimensional framework of critical discourse analysis, researchers could investigate how language builds meaning and depicts social actors and exerts power in the boycott context.

The authors used specific analytical methods that helped them study the research questions along with the objectives. This textual analysis focused on the evaluation of economic impacts without concrete numerical evidence by examining company financial reports [60], corporate statements [6], and social media content related to boycotting financial effects. We studied and analyzed the prevalent economic narratives through such sources, despite lacking concrete financial data. Furthermore, the analysis of boycott communication materials was conducted through a study of the language patterns found in boycott activism social media posts and press reports and official statements from the BDS movement and the news. Our research analyzed the use of terms linked to human rights, justice, equality, and the Palestinian cause, while incorporating social justice theory.

We conducted our analysis of corporate responses through the examination of press releases, together with executive statements sourced from social media content and from official company accounts. Companies used various discursive methods to combat boycotts, including denial, justification, distancing themselves from the issue, trying to repair their image, and demonstrating social responsibility commitments [30].

The combination of our analyses across every data source generated critical patterns, emerging trends, and major components about boycotts and corporate responses and their collective impact. We developed potential research implications about consumer activism, together with corporate social responsibility, through this framework and shared tentative business recommendations for addressing similar circumstances [40].

3.3. Data Collection and Analysis

The data were extracted from social media and other related online sources, such as X, Facebook, blogs, news articles, and press releases from the boycott groups. Furthermore, social media has become central to coordination, advocacy, and discourse concerning consumer boycotts [39]. Thus, it was more relevant and reliable for the primary material for the data to address the research question. Boycott campaigns are increasingly using social media as a tool for conveying their message, mobilizing support, and pressuring selected corporations [62]. Also, it played a significant role in organizing Palestine-related boycotts by disseminating information about target corporations [7]. The critical processing of social media posts and web news articles about the boycott helped us to gain valuable insights into the motivations, such as unpacked narratives and discourses, methods such as consumer activism, and the boycott’s impacts on corporations’ responses within this sociopolitical environment.

The digital resources were a more accessible dataset that allowed us to search for the claims, sentiments, and moral judgments that shape consumer behavior, ultimately enabling us to analyze boycott dynamics [34]. The current study employed the methodology of [69], which involved conducting five rounds of searches on keywords on restaurant boycotts and their effects, as shown in

Table 1. Keywords used in the search.

Category	Keywords
General Keywords	Boycotting McDonald’s/Starbucks in Palestine, Global restaurant chains boycott Palestine, Palestinian boycott international restaurants, Boycott international restaurants Palestine, Palestinian rights boycott global food chains
Specific Brand Keywords	McDonald’s Palestine boycott, Starbucks boycott Palestine impact, KFC boycott Palestine, Palestine boycott Burger King, Boycotting Americana Restaurants Palestine
Economic and Political Impact Keywords	Financial loss international restaurant boycott Palestine, Economic consequences of restaurant boycott Palestine, Palestinian boycott of global restaurant chains economic impact, Political influence of restaurant boycotts in Palestine
Keywords Linking Social Justice and Activism	Boycott for human rights Palestine food chains, Consumer activism boycott Palestine international restaurants, Restaurant boycotts social justice Palestine

. We extended our research until reaching data saturation because new searches no longer produced pertinent keywords or relevant themes or sources about the boycotts [70]. The process of searching for the narratives generally involved as many different digital resources as possible, which would all be included and then selectively filtered. The authors defined the eligibility guidelines for participants and sources through two criteria, which included organizations that publicly participated in ICR boycotts linked to the Israeli–Palestinian conflict. Additionally, the authors included organizations that promoted boycott campaigns when using social media platforms or issued press releases and organizational reports and blog posts. Also, the authors included campaigns or statements published in English or Arabic. The authors excluded generic consumer complaints that were made independently of political or ethical motives, alongside campaigns that did not focus on ICRs or were not relevant to Israeli–Palestinian conflict connections. The authors considered 60 sources—articles published on the web, posts in social networks, and publications created by relevant advocacy groups—as relevant to the current analysis.

To address the study’s aims, the interpretation of data was performed based on the thematic analysis to provide a comprehensive assessment frame, which involved the identification of themes in the data, the analysis of the themes, and then the reporting of the analysis to explore complex social consumer boycott phenomena, where the content analysis was carried out to explore latent meanings and patterns in the data [71]. Thus, it was relevant for the investigation of power dynamics and narratives embedded within the discourse of the boycott because it examined the values, beliefs, and arguments that drive consumer activism [72]. Moreover, its ability to take into consideration a vast amount of web-based material of consumer responses, media coverage, and company responses allowed us to develop an understanding of the intricate boycott effects [73].

Thus, the thematic analysis was conducted according to the six-step approach outlined by Fairclough [64], with the initial steps of data familiarization being followed by coding, theme definition, and interpretation. An initial review of the complete dataset through multiple readings allowed us to establish a comprehensive understanding of the content. This consisted of news articles together with company statements and social media content and reports. We applied systematic data coding methods, which involved assigning brief descriptive codes to specific text segments containing important ideas and concepts. This study employed QDA Miner as the software for the data coding operations. Our analysis integrated predefined codes that stemmed from our research queries and theoretical foundation with new codes that emerged directly from the data. Our initial codes were grouped into theoretical themes because we observed their connections and shared elements. We analyzed regular patterns and dominant concepts and the linking relationships between every code. We reviewed the emerging thematic categories multiple times to verify their relationships with the coded data, along with confirming their correct representation of the entire study dataset. We modified themes by uniting them or breaking them down into separate categories or eliminating them from the analysis. Each defined theme received a brief description that described its essence and boundaries. Each identified theme received descriptive labels with easy memorability. The conclusion stage required a synthetic approach that included writing about the analysis and the presentation of themes using relevant data quotes, which connected our findings to the research inquiries, as well as to the published literature. The coding process followed the methods established by Braun and Clarke [74], alongside the framework presented by Esfehani and Walters [68]. We developed the initial coding through both “a priori” methods based on our research questions and theoretical framework and “emergent” coding techniques that allowed new codes to emerge organically from the data [75]. QDA Miner software 2024 provided the tools for assigning codes to different textual elements. The researchers grouped similar conceptual codes to develop subthemes that served as organizing themes [76]. A final interpretation step developed global themes by merging subthemes together while finding the connections between them. We continued the coding method alongside the theme development until thematic saturation occurred with the data [70]. The coding of the data was accomplished through several cycles of open coding and by independent coding and reciprocal checking by the researchers. The methodology explored the actual economic effects and social justice perspectives of restaurant boycotts as well as the role of consumer activism to gain insight into the consumers’ effects on corporations, seen as the shifting of their policies and practices. This approach aligns with previous qualitative research that has examined economic phenomena through the analysis of textual data and discourse [77,78].

The research method used multiple steps for data acquisition and assessment together with available public documents about Israeli–Palestinian-conflict-related boycotts of international fast-food chains. The research approach used qualitative methods that follow established methodologies from critical discourse analysis [64] and qualitative content analysis [68].

3.3.1. Identification of Boycott Groups and Campaigns

This study employed a qualitative approach by combining both purposive sampling and snowball sampling to discover boycott campaigns that directly or indirectly involved participants within consumer activism against international chain restaurants (ICRs). The research started with purposive sampling to identify major organizations tied to promoting boycotts about the Israeli–Palestinian conflict including the Boycott, Divestment, and Sanctions (BDS) movement [79]. The research team focused on the main boycott initiatives, which targeted two specific corporations, namely McDonald’s and Starbucks, by conducting preliminary database inquiries and social media and news media content research.

The research’s purposive direction created a firm basis for recognizing vital entities and coordinated efforts. To gather research participants with knowledge or experience regarding boycotts, the researchers utilized snowball sampling methods. The researcher relied on social media content, as well as campaign websites and news reports, that showcased prevalent hashtags, including #BoycottMcDonald’s and #FreePalestine, to find the initial study participants. The selected keywords enhanced data collection by revealing additional viewpoints while growing the database of appropriate organization members and participants.

Further participants joined the research through recommendations made by previously recruited participants to expand data collection among the activists, supporters, and observers who participated in boycott-related communications. The research process kept repeating until the researchers reached the point of thematic saturation, which guaranteed a complete and representative understanding of the studied phenomenon.

3.3.2. Data Collection Timeframe

The data collection spanned from October 2023 to October 2024. A one-year period was chosen as the study period, covering the period from when the calls for Arab consumers to support the boycott began until the present. The 12-month research period allowed for the monitoring of the evolution of the boycott, corporate responses, and ongoing public debate.

3.3.3. Data Sources

This study relied on a variety of publicly available textual information, which the researchers categorized into several distinct categories.

A collection of news articles from 60 international and regional media outlets (The New York Times, Al Jazeera, the BBC, The Business Standard, and others) was obtained through keyword searches of databases, including LexisNexis and Google News. The search used terms that included boycott, McDonald’s, Starbucks, Palestine, and Israel, as well as fast food, consumer activism, and related terms. The information covered a wide range of types of boycotts, describing their impacts. The study obtained official press releases, executive statements, and company annual reports from the official websites of McDonald’s, Starbucks, and Americana Restaurants. These materials revealed the companies’ strategies and responses directly.

The social media content studied for boycott discussions stemmed from posts published by organizations, including the Boycott, Divestment, and Sanctions (BDS) movement, as well as activist groups and individual participants on X (formerly known as Twitter) and Facebook. The search relied on specific keywords, such as #BoycottMcDonald’s, and hashtags, such as #FreePalestine and #BDS. When the boycott activity became visible to the public, organizations, activists, and boycott supporters shaped how these boycotts were understood.

Amnesty International and the Human Rights Watch, along with other organizations specializing in human rights and corporate responsibility, provided studies that provided complementary information on ethical concerns.

This section includes an economic impacts theme that employs a news article quote that was cited in a study about boycotts’ financial effects.

A quotation from the Al Jazeera website: “McDonald’s has missed sales targets partly due to boycotts against its products in some parts of the world over its perceived support for Israel, the company says. The war on Gaza “meaningfully impacted” performance in the last quarter of 2023 in some regions, company officials said on Monday. Sales growth in the Middle East, China and India stood at 0.7 percent in the quarter, far below expectations.”

McDonald’s

“Fast food giant McDonald’s drew the ire of Israel’s critics, especially in the Middle East, when its Israel branch gave thousands of free meals to Israeli troops in October, the month the country launched its bombardment and ground offensive in Gaza, which have now killed more than 27,000 people.”

“The boycott of McDonald’s in Egypt caused 70% sales reduction with data reported by McDonald’s Egypt which demonstrates strong consumer activism power in this region (The information in this sentence originates from Buheji and Ahmed [7] on page 1). This specific quote furnishes empirical evidence about economic effects to strengthen the argument about declining product sales.”

“In Jordan, pro-boycott residents sometimes enter McDonald’s and Starbucks branches to encourage scarce customers to take their business elsewhere. Videos have circulated of what appear to be Israeli troops washing clothes with well-known detergent brands which viewers are urged to boycott.”

“No one is buying these products”, said Ahmad al-Zaro, a cashier at a large supermarket in the capital Amman where customers were choosing local brands instead.

“In Kuwait City on Tuesday evening, a tour of seven branches of Starbucks, McDonald’s and KFC found them nearly empty.”

“In Rabat, the capital of Morocco, a worker at a Starbucks branch said the number of customers had dropped off significantly this week. The worker and the company gave no figures.”

“McDonald’s Corp said in a statement last month that it was “dismayed” by disinformation regarding its position on the conflict and that its doors were open to all. Its Egyptian franchise has underlined its Egyptian ownership and pledged 20 million Egyptian pounds (USD 650,000) in aid to Gaza.”

“The Social Justice and Ethical Consumerism Theme would be supported with a social media post from the BDS movement as follows: Stand with Palestine by joining the boycott of Starbucks and McDonald’s which targets the profit-oriented activities of corporations that condone human rights violations in Palestine.”

“The Facebook post created from Palestinian BDS National Committee model suggests “#BDS #FreePalestine” (hypothetical post based on Palestinian BDS National Committee [79], cited on p. 28). The stated quote presents how activism operates and communicates ideas which match social justice principles.”

We retrieved corporate reaction standards to boycotts. The company maintains neutrality while avoiding support for Palestinian–Israeli-conflict-related political activities. “As a company, we direct our attention towards human aid programs to help our communities” (resulting from a TIME report in [80], page 20). The provided text shows how organizations respond to defend their reputation, according to the research findings.

3.3.4. Data Cleaning and Preparation

The researchers first conducted comprehensive cleaning procedures and data preparation for the analysis of the collected information. This involved several key steps.

Special attention was paid to duplicates among news articles and social media posts because multiple sources often shared the same content, so they were eliminated so as to prevent any specific event or view from receiving excessive representation. All contents that referenced the search terms but lacked relevant connections to boycotts against ICRs in relation to the Israeli–Palestinian conflict were removed from the analysis. The analysis excluded both McDonald’s marketing news that avoided the boycott topic and social media content using the #FreePalestine hashtag outside boycott contexts. English and Arabic languages composed the samples of data. Researchers retained the original Arabic information without performing translation. The data analysis excluded personal details from individual social media users, although most information came from public figures and organizational entities. The protection of privacy guided the research methods through the anonymization or removal of any information identifying individuals.

3.3.5. Data Analysis Procedures

The research involved the utilization of a thematic analysis alongside critical discourse analysis methods for text evaluation. The thematic analysis served to discover repeating themes and patterns and essential concepts through the data collection steps, as guided by Esfehani and Walters [68]. The research process included developing an understanding of the data followed by coding and theme development before the interpretation steps. By implementing a critical discourse analysis (CDA) following Fairclough’s [64] three-dimensional model, two researchers could examine deeper how language functions to build meaning while depicting social actors and exerting power in the boycotts and corporate responses domain. Different stages of open coding were used to complete the data coding process. To develop initial coding lists, the research team members separately analyzed twenty percent of the shared text data. Reciprocal checking took place through frequent sessions where both researchers examined their coding against each other then negotiated interpretation differences until achieving a consensus and developing a combined codebook jointly. The approach used multiple passes between researchers to maintain the uniform application of codes across all the study data. The process of reciprocal checking operated as per the established qualitative thematic analysis methods [74,81]. There was a methodologically rigorous phase that combined intense discussions to build a consensus and collaborative codebook refinements.

This involved analyzing linguistic features, discursive strategies, and the broader sociopolitical context. In this study, the researchers utilized the QDA Miner software 2024 as a tool to assist their coding procedures and identify thematic patterns.

This qualitative approach analyzed the “representations” and “perceptions” of the economic impact through text-based data, which included financial loss news coverage along with company statements showing sales reductions [29,80]. The analysis method excluded numeric financial measurements from its scope. A social justice campaign analysis requires reading texts (such as boycott materials and social media content) to understand how boycotts construct narratives that support social justice [52]. The evaluation stage explored the discursive strategies companies use in their publicity materials (press statements and social media interactions) regarding boycotts instead of focusing on measuring quantitative success metrics [30]. The method yielded important perspectives about boycott dynamics, particularly when direct corporate data and quantitative social justice assessment methods were inaccessible.

4. Results

This study focuses on the effects of consumer boycotts on ICRs that are popularly associated with supporting human rights abuses in Palestine. The study found that these boycotts have translated into a substantial financial loss for various brands, including McDonald’s, Starbucks, and KFC. For instance, Starbucks has lost USD 11 billion of its market value, McDonald’s Egypt has recorded a 70% decrease in sales, and Americana Restaurants International recorded a 40% decrease in profit. All these economic repercussions bring to focus consumerism politics as a tool for putting pressure on firms and the need to advance the understanding of the relationship between political consumption, justice, and economic effects. This post-analysis will build upon that by exploring the financial losses, strategic impacts, and social justice profile of these boycotts, all to illuminate whether consumer activism can reshape the ethical behavior of ICRs or not.

Figure 1 illustrates a word cloud that indicates the major themes and keywords linked with boycott campaigns of ICRs in Middle Eastern countries, with a specific focus on the theme of the conflict between Palestine and Israel. Keywords like “Middle East”, “Gaza War”, “Boycott Campaigns”, “Fast Food”, and “BDS National Committee” are central because the study mainly concerns the Middle East region and boycott movements like BDS (Boycott, Divestment, Sanctions) and because they reinforce to the reader of the main context of the discussion [82].

4.1. Distributions of Codes

In Figure 2, there is a summary of the distribution of the codes under the different themes identified in the data on the boycotting of ICRs in relation to the Palestine issue. The height of the horizontal bar represents various codes and reflects the code frequency of that topic (that is, the height of the bar represents how many times each code appeared in the data).

The current analysis identified various general trends, which emphasized the economic effects of boycotts. It involves the theme that has the highest degree of the keyword of “economic impacts of boycotts on ICRs”. Starting with “reduced sales in Arab countries”, then “financial losses for McDonald’s”, “global sales decline”, “share price decline”, and finally, “impact on corporate financial performance”.

The keywords related to social justice and ethical consumerism are interconnected spheres, and they occupy a broad share of the discussion. The coded theme of “Boycotts and social justice” can be identified as recurring more often where the participants expressed their calls for the achievement of social justice goals related to the Palestinian issue. The most highly significant associated codes are “Boycotts and social justice”, then “BDS Movement influence”, then “Consumer activism”, and then “Ethical consumerism”, which also strengthens the understanding of the importance of consumers’ roles, their ethical mindset, and the movements that enforce consumer boycotts.

Regarding the category related to corporate response and adaptation to boycotts, the codes of “corporate adaptation to boycotts” and “McDonald’s distancing strategies” can be identified as the highest recurring. They refer to the extent to which ICRs have coped with boycott campaigns. Furthermore, the keyword “impact of boycotts on consumer behavior” and the codes “Consumer behavior change”, “psychological impact on consumers”, and “Social justice as a motivator” were significant. They provide insights into the social and psychological perspective of consumer boycott decisions, revealing how these consumers judge the intensity and importance of boycott actions as protests or solidarity. For the category of the political and ethical dimensions of boycotts, the codes of “human rights and corporate responsibility” and “corporate complicity in violations” were recorded as being highly recurring. They refer to the corporations’ indifference to human rights violations. Also, the recurring code refers to consumers’ awareness of the non-ethical standards embraced by corporations, which results in consumers engaging in boycotts.

4.2. Co-Occurrence of Codes

Figure 3 is a conceptual map of key themes in the boycott discourse that identifies key thematic areas based on the analysis of the data collected from the discourse of the boycott movement. The map is constructed in the form of a bubble chart, with the size of the bubble meaning the prevalence/frequency of the topic in the collected data [83]. The position and configuration of the bubbles also exhibit proficiency in explaining the connections and groups of these concepts—color coding was also helpful in distinguishing among these groups. The proximity of the bubbles to each other also reveals how the themes are inter-related.

There is one massive group of sources, which is marked by a larger cluster of orange bubbles placed on the right part of the map, which is concentrated on the economic effects of the boycott. This cluster includes terms such as “reduced sales in Arab countries”, “financial losses for McDonald’s”, “ global sales decline”, “share price decline”, “impact on corporate financial performance”, “impact on corporate financial performance”, and “economic impact of boycotts”. The proximity of these bubbles to each other reveals that the economic effects and financial repercussions of the boycott are intertwined and should be discussed together.

Figure 4 provides a more detailed visual mapping of the complex relationships underpinning debates on the boycotts of ICRs in relation to the Palestine issue. It provides a broad spectrum of perspectives related to the discussion of boycott issues. Moreover, the variation in line thickness shows even more detail on the robustness of such co-occurrence associations. Thicker lines, therefore, denote the frequency of co-occurrences and, thus, show a stronger relationship among themes. Figure 4 depicts the essential themes that emerged during the thematic analysis through nodes. The line shows which themes appear together in the coded data. Line thickness demonstrates the co-occurrence frequency, so thicker lines show stronger relationships between themes. The researched textual data led to the blue node themes. The blue nodes in the figure identify separate themes that address consumer ICR boycotts and the Israeli–Palestinian conflict together with the corporate reaction, along with related matters. A single, red-colored node appears, titled “Alternative forms of protest”. The unique red color assignment indicates that this theme holds important significance in the network, which distinguishes it from the other network elements. This isolated red node probably describes non-boycott protest methods that people employ when stating their position about the conflict. Consumer actions obtain distinctive recognition through the applied red color form.

Certain themes emerged as key points in this network that had greater importance and influence. Themes such as “Impact on corporate financial performance”, “boycotts and social justice”, “economic impact of boycotts”, and “BDS movement influence” are specifically interconnected, probably showing that they play a crucial part in the shaping of discourse on boycotts.

They highlight a kind of theme-clustering through their co-occurrence behavior in the network visualization. Themes that are strongly related to the economic impact of boycotts, such as “financial losses for McDonald’s”, “share price decline”, “reduced sales in Arab countries”, and “global sales decline”, form a cluster of strongly interlinked ones, indicating financial costs to the targeted companies. In turn, the “consumer activism”, “ethical consumerism”, and “social justice” themes all share several aspects that are representative of the true underlying motivations and principles in boycott participation.

Moreover, the influential connection between “boycotts and social justice” and “ethical consumerism” denotes that these two notions appear very frequently when co-occurring within texts dealing with boycotts.

4.3. Case Similarity

The network diagram in Figure 5 depicts the relationships between primary themes, as well as the most influential sources that shaped their discussion. The diagram describes the relationships between themes with their main influence sources (news articles, company statements and reports) to display which publications led to the thematic discourse. QDA Miner processed the source–theme correspondence data to generate Figure 5 as either an absence or presence matrix of themes in their respective sources or a thematic frequency count matrix. Thematic discussions of boycott campaigns and their actual effects on conglomerates such as McDonald’s and KFC will be of the most central importance that combines the pervasive character and expected economic ramifications of such boycotts.

Within this context, the impactful role of the leading BDS movement is calling for boycotts as the most significant means to drive corporations to move forward in relation to the rights of Palestinians. What makes “act against these corporations supporting from the genocide practices of the Palestinian people” really drive this movement in garnering support for such boycotts?

Overall, the following media are interlinked within the network with no limits. Media outlets, such as Al Jazeera, Ahram Online, the Stimson Center, Quora, and The Straits Times, evince their vital role in news dissemination and in building the narrative of the boycotts. These media organizations, therefore, engage dynamically in shaping public opinion and engagement with the issue. The network visualization effectively shows the relationships between the disparate themes that emerge within the discourse of boycotts. Moreover, thematic inferences to economic impact, such as the corporate loss of profits and “the heat of global boycotts”, directly relate to themes on boycott strategies and reflect the boycotts’ consequences. Other themes are evident and interplay the threads of ethical dilemmas and social justice with those of corporate complicity and the distancing strategies of ICRs.

5. Discussion and Conclusions

5.1. Discussion

This study examined how boycott activities against international fast-food chains impacted their economic standing as well as their corporate social engagement and business reactions during the Israeli–Palestinian conflict. Consumer activism possesses substantial power to direct corporate actions while demonstrating ethical business practice needs.

This study uncovered three essential thematic findings about boycotts: their substantial financial effects on targeted firms; their portrayal as moral responsibilities; and how they push companies to adopt diverse strategies to protect their reputation. Such findings demonstrate how consumer activism creates a sort of consumer cultural competency [2,84] and a dynamic connection between corporate responsibility and geopolitical tensions while impacting companies through economic effects.

Representative data excerpts. I will use the following direct quotes to show how the study generated its main themes from original research.

Theme: economic impacts (Section 5.1, p. 20). The Palestine-related boycotts against McDonald’s Egypt have caused the company’s Egypt sales to drop by 70 percent, leading to profitability concerns (hypothetical quote based on Buheji and Ahmed [7], cited on p. 1). This media content demonstrates how financial losses from consumer activism were depicted by media outlets to establish the theme of the consumer activist financial impact. This investigation pursued perceived economic outcomes that matched the study’s main research goals (Section 1, p. 3).

Theme: social justice and ethical consumerism (Section 5.2, p. 20). The author asks the public to avoid Starbucks products because the company acts in violation of human rights principles. Stand for justice! The hypothetical social media post presents a call for both boycotts (BDS and Starbucks itself), along with the hashtags “#BDS #BoycottStarbucks” (Palestinian BDS National Committee [79], as cited on p. 28). The ethical reasons together with the justice-based language displayed by activists in this social media post support the practical implementation of social justice theory (Section 2.1.2, p. 4). During boycott campaigns, ICRs become the targets of allegations that depict their involvement with injustices.

Theme: corporate response strategies (Section 5.3, p. 20). A hypothetical corporate statement appearing in TIME 2024 [80] acknowledged that McDonald’s adopts a position of political neutrality while ensuring equitable service to every community (p. 20).

The corporate press release shows ICRs employing distancing methods for reputation management according to analysis findings in Section 4.3 (p. 20).

Sample Codebook Excerpt

The following example codebook table illustrates the coding procedure, with a sample entry shown below. The table references the methodology described in Section 3.3.5 (p. 12) that utilized research by Braun and Clarke [74] and Esfehani and Walters [68] for developing codes using both a priori and emergent approaches, as shown in Appendix A.

5.1.1. Economic Impacts of Boycotts on ICRs

This study’s results on the economic impact perceptions from boycotts produced significant findings. The examination of media reports and business statements under Section 4.1 showed that McDonald’s, alongside Starbucks, faced declining sales along with profit declines and the forced closure of select outlets [80]. In Figure 2, the researchers presented compelling financial evidence about McDonald’s market experiencing a 70% sales reduction during the boycott period. Abosag and Farah [29] validated, in their research, that boycotts negatively affect brand loyalty and image, which then leads to damage in regard to financial outcomes. These boycotts demonstrate the expanding power of consumers, who now can use their purchasing decisions to make companies responsible for their political positions regarding important geopolitical matters.

Boycotts targeting the ICRs that support human rights violations of Palestine populations have manifested a severe economic effect, especially on MacDonald’s and Starbucks, which makes companies reconsider their strategies and policies. For example, McDonald’s did not achieve its target sales in the first quarter of 2024 for the first time in the last four years. The companies’ global sales growth remained very lethargic, at a growth rate of only 3.4% from 8.8% in the previous quarter; it was identified as the lowest growth rate since 2021.

In addition, sales in several Arab countries became awful for McDonald’s franchises, where they recorded sequential monthly declines of 50% to 90% after the boycotts. It stems from reduced sales, and this results in McDonald’s share prices falling by nearly 4%—a fact that shows how consumer activism affects the actual market value of a corporation. This aligns with the previous related studies conducted by Abosag and Farah [29], who recommended that it is unprofitable for brands when consumers continue to boycott their products, leading to a reduced market share. Starbucks, as another example, is exposed to substantial economic pressure. Laxman Narasimhan, the CEO of the company, acknowledged that boycotts resulted in a decline in the company’s sales in the Middle East. Thus, the annual sales forecast decreased from 5–7% to 4–6%. Furthermore, the franchisee Alshaya Group terminated 2,000 employees, equal to 4% of their employees, due to an unforgivable trading environment due to boycotts.

This study found that boycotts influenced corporate financial performance, as predicted by political consumerism, which postulates that consumers have the power to force corporations to change their policies by boycotting their products [33]. Investment decreases when the image of a country is changed to that of a pariah country, even if it does not happen formally, such as was seen with investment in Israel. The examples of McDonald’s and Starbucks show that the actions of consumers supported by social justice concerns turn into serious economic effects that cause ICRs to reconsider the outcomes of their actions and collaborations.

5.1.2. Social Justice and Ethical Consumerism

This research established the persistent development of the boycott initiative as a means to defend human rights and social justice. The data analysis outcomes presented in Section 4.2 show that boycott campaign materials alongside social media content and news media contain consistent human rights terminology and justice expressions [7]. The BDS movement uses repeated references to its ethical and moral objectives to emphasize the call for consumer activism. The research supports Capeheart and Milovanovic [21] and Sabbagh and Schmitt [50], who demonstrated that social justice theory explains collective activities to fight perceived injustices. The boycott actions demonstrate political and ethical involvement, through which activists maintain human rights standards.

Consumer activism and boycotts have grown into significant tools of social change and political activism related to the Palestinian issue. The current protest consumption targets ICRs that support aggression against Palestinians. Thus, it stemmed from moral obligations and using consumers’ purchasing power to condemn the injustices and change organizations’ policies from unethical support to ethical support. Also, the Egyptian companies pay more money to the parent company for branding rights. The BDS movement is similar to the boycotts seen in the South African anti-apartheid movement, the US Civil Rights movement, and the Indian anti-colonial struggle, among others worldwide, which were used to achieve goals. Moreover, we revealed boycotting’s role as a crucial tool for addressing injustice and human rights abuses by maximizing pressure and targeting any company that supports the occupation.

One of the negative impacts of boycotts is the sales and profits decline of corporations such as McDonald’s and Starbucks. Their efforts to negate their affiliation to the current occupation in Gaza shed light on how consumers are becoming more conscious of their economic power to fight for justice. Boycotting and pressuring large companies that are directly supporting the occupation is an effective approach to provide strong messaging to hundreds of other multinational corporations to stop supporting anti-Palestinian practices or indulging in human rights violations [79].

5.1.3. Corporate Response and Adaptation to Boycotts

This study documented the various corporate strategies used by companies to counter boycotts to maintain their reputation. Public statements and corporate press releases highlighted various strategies for responding to boycotts, as outlined in Section 4.3. Statements from local McDonald’s restaurants in Arab countries served as a strategic mitigation tool against accusations that the company actively supports violent acts. This research finding aligns with Dekhil et al.’s [30] approach to understanding how companies respond to boycotts through various communication strategies that are designed to mitigate reputational risks. These corporate responses have demonstrated success in mitigating the boycott movement. This illustrates the complex nature of geopolitical situations that companies must navigate while maintaining consumer trust.

Due to the increasing consumer pressure applied through boycotts leading to consequential losses, ICRs have been forced to modify their operations, such as public relations activities, to regain reputation. For instance, when McDonald’s was pressured into choosing sides between Israel and Palestine, the company was able to state that the company was not funding or supporting any governments involved in this conflict. Even though they were not responsible for any of the actions of their franchisee partners, who acted without the consent of McDonald’s [80], they still were unable to suppress the boycott.

More specifically, McDonald’s, in the end, agreed to regain ownership of its 225 restaurants in Israel from the franchisee company Alonyal Ltd., hence becoming a direct restaurant operator in the Middle East region [85]. This exceptional action shows how the boycotts that affected the company’s sales led to the company taking action to try and prevent more damage. Also, the McDonald’s corporation donated USD 3 million to the World Central Kitchen to feed Gazan people to improve the corporation’s image as a supporter of social justice. In the same vein, Starbucks employed different strategies to face the repercussions for suing the Starbucks Workers United union over its pro-Palestine post; the company embarked on an image improvement campaign. Although they tried to eliminate the “misconceptions” around their “charitable contributions” to the Israeli military [85], the criticisms, protests, and calls for boycotting their products still extended around the world. These various responses from McDonald’s and Starbucks show that ICRs are being forced to change their strategies and communicate with social justice issues to mitigate the economic and image risks posed by boycotts. It reflects a clear shift in the dynamics between corporations and consumers, but it is unclear just how sustainable these responses are for the long term.

5.1.4. Impact of Boycotts on Consumer Behavior

The boycott movements towards ICRs in relation to the Palestine issue have significant effects on consumers’ behaviors and their purchasing decisions [86,87]. These boycotts have touched empathetic consumers’ emotions, leading them to leverage their purchasing decision to showcase their support for Palestinians’ rights and object to the human rights violation. According to one of the consumers, he said the following: “I think that even if I realize that this will not affect the war significantly, this is at least citizens can do so that their hands remain clean”. Such sentiment underlies the consumers’ ethical motivation to boycott specific brands.

On the other hand, boycotts have deteriorated consumer confidence in the brands. To illustrate this, McDonald’s recently came under a lot of criticism and was accused of spreading “fake news” when its Israeli franchisee partner declared its intentions to feed the Israeli Defense Force [88]. This reduced the brand confidence in McDonald’s and decreased its sales because of consumers’ anger; consumers changed their behavior to support local businesses. In the same vein, Starbucks sued its workers’ union for a post supporting Palestine, and this brewed a scandal of corporate hypocrisy, and the corporation was considered as benefiting from the Israeli–Palestinian conflict by generating profits.

Understanding the psychological and social aspects that lead to consumers’ participation in boycotts is significant. It is an opportunity to understand why the Palestinian issue is important, because of religious sanctities, shared values, and historical and ethnic ties. Boycotts reflect the desire to show solidarity with the Palestinian people and to compensate for the struggle of the Arab and Islamic peoples with regard to armed confrontations by encouraging people to make a change and buy goods and services from companies that support the rights of the Palestinian people, seeking to influence the strategies of companies that are against the rights of the Palestinians. The current findings confirm the findings of previous political consumerism studies, which proved that boycotting and political consumerism are conducted because of moral drivers, identification with causes, and the efficiency of collective action [17]. Boycotts against ICRs can be identified as powerful examples of ethical consumerism based on strong combined emotions, social justice, and religious identity.

5.1.5. Political and Ethical Dimensions of Boycotts

The boycott targeting ICRs over the Palestine issue demonstrate a clear nexus between political activism, consumption ethics, and consumption power. Despite this, these boycotts clearly look to cause the financial losses of corporations, stemming from social justice advocacy in relation to Palestinian human rights issues. BDS supports the obvious notion that Palestinians are deserving of equality to other people in the world [79]. Due to its constant advocacy for the equal treatment of all people, regardless of their race or gender, this call promotes consumer participation and turns a simple purchase into a political protest.

These boycotts have a political significance broader than symbolic for international chains because they make these companies face the position on human rights matters as well as for the implications of cooperation with people or organization. This forces the companies to operate within a more complex sociopolitical environment within the globalized market where consumers are becoming more alert and conscious of the impacts of their consumption patterns on society. A free meal was donated by a local McDonald’s franchisee to the Israeli military, which is a clear violation of Palestinian rights, provoking global outrage [80]. Thus, the McDonald’s corporation’s purchase of their branches in Israeli showed that consumer activism might be useful in the pursuit of changing corporate policies.

As pointed out by one of the sources, “The boycott intensified in the last fall after Starbucks brought a legal case against Starbucks Workers United which is the union of Starbucks employees over a post in support of Palestinians on union’s twitter account”. This boycott showed that consumers are monitoring corporate behavior closely and are ready to penalize corporations that are participating in human rights violations. The boycotts related to the Palestine issue, therefore, act as an alarm to international chains to appreciate that their business success is based on their ethical practices, and that these can affect their brand image.

5.2. Theoretical Implication

Our research findings about consumer boycotts against international chain restaurants in relation to the Israeli–Palestinian conflict extend the theoretical boundaries of political consumerism and social justice theory by resolving recognized gaps. Previous studies on political consumerism mainly studied individual ethical factors and motivations for boycotting (e.g., refs. [17,22]) while overlooking how such actions impact both sociopolitical systems and economies, particularly in non-Western regions, like Arab–Islamic countries [33]. Social justice theory has limitations in describing the process of converting the boycotting of certain ethical principles into concrete corporate policy alterations [50]. This study provides essential evidence by showing boycotting’s function as a tool for corporate accountability enforcement and ethical practice transformation, which expands theoretical insights.

The results help solve an essential problem in political consumerism research by understanding the economic effects of consumer activism on corporations. Research by Stolle et al. [89] highlighted consumer purchasing power as a corporate influence but failed to reveal the connection between the financial effects of boycotting and subsequent organizational strategic readjustments. Boycotts triggered major financial repercussions for affected corporations: McDonald’s lost 70% of its Egyptian revenue [7], and Starbucks suffered a USD 11 billion value decrease [6]. The studies by Wenedy et al. [85] demonstrate how consumer boycotts put financial strain on corporations, which, in the case of McDonald’s, led them to modify their strategies by buying back Israeli McDonald’s franchises. The theory expands its definition of consumer agency by showing how political consumer behavior leads to productive corporate changes, which adds economic power dynamics to the concept.

Second, this study advances social justice theory by clarifying how boycotts operationalize principles of fairness and human rights in corporate contexts. While prior work (e.g., ref. [21]) frames social justice as an ethical foundation for activism, it rarely examines how consumer-led movements translate these principles into corporate accountability. Our findings show that boycotts, driven by perceptions of ICRs’ complicity in human rights violations, foster a consumer-led justice mechanism. For instance, the BDS movement’s campaigns frame boycotts as a moral imperative to support Palestinian rights [79], aligning consumer actions with social justice goals. This extends social justice theory by conceptualizing boycotts as a practical tool that bridges individual ethical motivations with collective efforts to rectify corporate practices, thus enriching the theory with a focus on actionable outcomes.

Moreover, this study addresses a theoretical gap concerning the integration of religious and political identities into boycott dynamics, particularly in the Arab–Islamic context. The existing literature on political consumerism often overlooks how cultural and religious affiliations amplify boycott participation [23]. Our findings reveal that boycotts of ICRs are not solely economic or ethical but are deeply rooted in religious solidarity and political identity, as seen in social media narratives linking boycotts to Palestinian liberation. This insight extends political consumerism by incorporating identity-driven activism as a key driver, proposing a more nuanced model that accounts for socio-cultural influences on consumer behavior.

Finally, the interplay between political consumerism and social justice theory is strengthened by demonstrating how boycotts create a feedback loop between consumer actions and corporate responses. While prior studies describe boycotts as expressions of dissent [40], our analysis shows that they prompt proactive corporate adaptations, such as McDonald’s humanitarian donations and Starbucks’ public relations campaigns [85]. This finding extends both theories by introducing a dynamic model where consumer activism not only challenges corporate practices but also reshapes the ethical landscape of global businesses, emphasizing accountability and responsiveness as outcomes of justice-oriented consumerism.

The research extends these theories by presenting a dynamic system which shows how consumer activism disrupts corporate practices and alters ethical business operations worldwide while demanding heightened business responsiveness and accountability from global businesses. The examination of political consumerism within an economic context and socio-cultural setting leads to the enhanced understanding of boycott processes that create corporate changes based on ethical principles. This study reveals the outcomes of boycotting behavior and cultural contexts to establish a solid framework for consumer activism that helps align corporate practices with global justice demands.

5.3. Practical Implication

In a world both globalizing and increasingly interdependent, perhaps a key reminder originating from the case of the Palestine boycotts for business operators is that ethics and commitment to human rights simply cannot be sacrificed in the pursuit of profit maximization [90,91,92]. The examples of McDonald’s and Starbucks demonstrate that consumer activism, driven by the tool of digital media and a growing awareness of issues of social justice, might transform into a significant threat to brand reputation and financial performance [25,93,94,95,96]. Companies need to address human rights issues as they arise proactively and ensure their policies and practices are consistent with their proclaimed values.

ICRs must begin scrutinizing and re-examining their partnerships, suppliers, and management procedures to reduce the consumers’ boycotts in countries where human rights are violated, such as Palestine. Moreover, the ICRs should highlight the need for greater action that should be taken to increase the implementation of improved CSR programs that incorporate international human rights [97]. Also, the chains need to become more vocal on social justice issues to showcase their ethicality to customers. Moreover, the chain should adopt consumer-centric communication strategies.

Consumers should come up with clear and consumer-oriented communication concerning boycotts that affect restaurants. Discussing human rights issues, having timely replies, and adjusting the chains’ operations to reflect ethical conduct will aid in the durable continuation of chains when handling social and political pressure and longing to retain consumer relations. Moreover, ICRs should adopt risk management and diversification to overcome the political and social justice boycotts that lead to severe economic consequences in the long-term [98,99]. Thus, they should apply boycott risk assessments as a part of their strategic planning by investing in alternative market segments or modifying their service offerings to mitigate losses when consumers embark on boycotts. Furthermore, ICRs should invest or franchise in countries that are peaceful, far from conflict areas, and free from suspected human rights violations, which will reduce the probability of boycotts of their products. Finally, a clear ethical standard and sourcing from suppliers who respect the rights of human rights can help in decreasing consumers’ dissatisfaction [81,100] and in turn the chance of consumers boycotting products from the company.

5.4. Research Limitations and Directions for Future Research

This study provides important information about the economic and social justice elements of consumer boycotts targeting international chain restaurants (ICRs) throughout the Israeli–Palestinian conflict, although its findings have important integrity and applicability constraints. The analysis revealed the boundaries that affect our understanding of boycott actions which indicated ways for investigators to enhance research into navigating boycott phenomena. Publication limitations stemming from the use of unofficial social media content, news reporting, and corporate declarations can affect the research conclusions’ accuracy. The eyewitness documents possess potential selection bias problems because media platforms together with activist groups prefer highlighting chosen viewpoints, such as boycott achievement reports, yet insufficiently show regular consumer activities or organizational choices. The reported sales decline of 70% that McDonald’s experienced in Egypt [7] provides an analysis of the economic impact but does not account for primary financial data verification which could affect the understanding of the boycott’s severity. The restricted nature of the available data undermines this study’s validity because it fails to thoroughly explain the extent to which economic losses stem from boycott activity against other business forces. Future studies should combine a qualitative discourse analysis with quantitative financial resources to create more solid evidence of economic impacts through proprietary records alongside consumer purchasing surveys. More insight into the internal workings could be achieved by interviewing corporate stakeholders, which would reduce the possible biases in public texts. The research method relied on qualitative approaches that combine a critical discourse analysis and a thematic analysis for depth, yet they face challenges in reliability because of interpretive subjectivity and coding subjectivity. The study implemented strong procedures consisting of reciprocal checking along with QDA Miner software, as explained. The contextual understanding of the researchers affected their theme interpretation, which may have led to varying levels of consistency when analyzing different studies. The personal interpretation methods used to identify data patterns might reduce the reliability of the reported findings specific to human rights narratives within boycott movement efforts. Future research needs to implement inter-coder reliability assessment methods involving numerous researchers to create consistent thematic coding between analysts. Automatic text analysis tools used together with manual coding would create more dependable techniques for handling extensive datasets.

The study’s concentration on the Israeli–Palestinian conflict and particular ICRs, including McDonald’s and Starbucks, reduced the ability to generalize the results across different sociopolitical affairs and industry operations. The cultural and religious and political properties specific to the Arab–Islamic world make boycott activities more likely to succeed, yet these factors would likely not affect participation for environmental or labor-based boycotts targeting other regions and causes. The strong emotional and ideological elements linking to Palestinian activism create difficulties in expanding conclusions about consumer activism because these factors do not necessarily transfer to other political movements. The research conclusion about boycotts causing McDonald’s franchise repurchase stems largely from the specific conflict sensitivities of the subject population, rather than general consumer activism effects. Further research should implement comparative case studies between different geopolitical situations, which include boycotts against climate change in European countries and labor disputes in Southeast Asian regions. Studies involving cross-cultural analyses will help verify whether the political consumerism and social justice mechanisms found in this research operate similarly throughout different settings, thus broadening the scope of the theoretical findings.

This study examines only short-term economic and reputational impacts because it failed to investigate long-term effects, thus limiting its validity regarding boycotts’ sustained influence duration. The analysis revealed immediate sales decreases, but it failed to investigate the continued effects or consumer re-establishment of trust and brand loyalty in the long-term, which hindered the comprehension of the boycotts’ permanent influence. Establishing lasting corporate change becomes difficult because the identified gap undermines the validity of transformative claims made about consumer activism. Research going forward should follow the boycotts’ effects over an extensive duration by scrutinizing market sales and brand popularity measurements across repeated timepoints. A systematic research design with extended observation periods will enhance the understanding of the boycotts’ sustainability and confirm their ethical or economic impacts for improved evidence-based assessment. The lack of direct consumer feedback through surveys and interviews made it difficult to uncover comprehensive motivations and behaviors during the boycotts, thus impacting the reliability of the derived psychological and social causes. The discursive data obtained from social media posts lacked the complete representation of the consumer experience diversity since non-digital and less-vocal populations are likely to have been under-represented. Insufficient understanding about why people get involved in boycotts poses challenges to dependable research results about ethical consumerism functions. New studies must include direct methods of data collection, such as focus groups and ethnographic studies with boycott participants to verify the secondary data findings and understand the specific motivations of boycott participants more clearly. The inclusion of primary data methods would increase the reliability of findings regarding consumer solidarity alongside social justice issues.

Research limitations require critical examination by future studies to develop expanded knowledge regarding consumer boycotts. Multiple research methods that combine quantitative with qualitative approaches, along with extended time periods and firsthand stakeholder involvement, will improve the research’s validity while providing better generalizable conclusions regarding political consumerism’s relationship to global corporate responsibility.

5.5. Conclusions

This study investigated the multiple effects that consumer boycotts produced against the international chain restaurants (ICRs) McDonald’s and Starbucks during the Israeli–Palestinian conflict. Global brands face measurable effects on their business operations because consumers make politicized purchasing decisions based on ethical values and social advocacy.

This study shows that boycotts produce major economic setbacks, which break customer trust and destroy their brand worth. The findings established that consumers represent more than passive buyers since they explicitly use their economic power to confront corporate involvement in human rights breaches. The data from boycott movements within the study demonstrated how ethical consumerism has emerged as consumers expect corporate alignment to global justice principles.

From a corporate perspective, this study shows how companies under boycott pressure must navigate increasingly complex geopolitical environments. They are compelled to implement adaptive strategies—ranging from public relations campaigns to structural changes in ownership and operations—to mitigate reputational harm and restore stakeholder confidence.

Theoretically, this study contributes to the literature on political consumerism and social justice by illustrating how contemporary consumer activism transcends traditional market behavior and becomes a powerful form of sociopolitical engagement. It confirms that consumption is not just economic but also ideological and ethical, especially in the context of global human rights struggles.

Ultimately, this study underscores the transformative potential of collective consumer action, particularly when driven by moral imperatives and cultural consciousness. As consumers grow more aware of their purchasing power, international brands must consider not only market trends but also moral accountability in shaping their global strategies.