A tale of two cafes: Stories Coffee thrives as Starbucks feels Gaza boycott heat
The Starbucks branch in Beirut’s northern suburb of Zalka has been a popular hangout for locals for more than a decade.
But due to widespread anger over Israel’s military assault on Gaza, many of its customers are now enjoying their coffee on the other side of the street.
Stories Coffee, which opened an outlet opposite the Zalka Starbucks in December last year, has grown in popularity amid calls for a boycott of international companies perceived to be supporting Israel.
While the two coffee shops have many similarities, from their dark green and white logos to the cosy ambience inside, the key difference is that Starbucks is a US chain while Stories Coffee is home-grown.
“I’m boycotting, and since there’s an alternative across the street, I might as well go there. That way, I don’t feel guilty when I sip my coffee,” said Grace, a customer at the Stories Coffee outlet.
Fidel, another customer, said: “We should all be participating in boycotting; it’s a matter of humanity”.
Since the Gaza war started, calls to boycott Israel-friendly brands have surged.
Lists of western companies to avoid have been circulating on social media, often without a clear explanation of their connection to Israeli interests. Some brands appear to have been included solely because they are from the US – Israel’s staunch ally.
Starbucks, which has 42 outlets in Lebanon, is not included in the campaign advocating various forms of boycott against Israel since 2005. However, it caused outrage when it sued its US union, Starbucks Workers United, for trademark infringement over a social media post in support of Palestine. On its website, Starbucks denies any “political agenda” despite “false statements spread through social media”.
“We do not use our profits to fund any government or military operations anywhere – and never have,” it says.
Starbucks Middle East and North Africa, managed by Alshaya Group, the franchise holder for Starbucks in Lebanon, did not respond to The National’s request for comment.
However, this week, it announced it would lay off more than 2,000 workers after the business was affected by consumer boycotts linked to the war in Gaza.
The decision to reduce the company’s regional Starbucks workforce by about 18 per cent followed “challenging trading conditions” over the past six months, a representative told The National.
In the meantime, business at Stories Coffee is booming. Launched in 2021 by Lebanese entrepreneur Tarek Nasser, the chain now employs 150 staff and welcomes thousands of clients daily at its nine branches.
It has opened at least two outlets since the Gaza war began on October 7 and plans to open five more this year.
Elias Hanna, a representative for Stories Coffee, said the company’s growth was not a result of the Gaza-related boycott and that its expansion was planned before the war.
“The movement has positively impacted our sales but it has helped many other local brands similarly,” Mr Elias said, adding that Stories Coffee did not have a “political stance”.
Ahmad Chanouha, export sales manager for Lebanese drinks maker Cedars Premium, said the boycott had a clear effect on his company’s sales, particularly its alternatives to international brands of carbonated drinks.
“We’ve seen a consistent increase in sales, from 20 per cent to 30 per cent each month. The boycott is driving our sales, especially in Palestinian and Muslim areas. We’ve also expanded our points of sale by 40 per cent since October 7,” he said.
However, the boycott does not seem to spell the end for western brands in Lebanon.
Opposite Stories Coffee in Zalka, Starbucks was bustling.