Amidst boycotts of international brands, local Omani coffee shops report surge in sales
Published: 03:03 PM,Mar 10,2024 | EDITED : 01:03 PM,Mar 11,2024
Reuters recently reported that international outlets are expected to fire over 2000 employees in the MENA region.
Muscat: Local coffee shops in Oman are reporting a surge in sales amidst the ongoing boycotts against international coffee brands in response to the Gaza genocide.
While speaking to the Observer, several coffee shop owners shared that there has been an increase in sales since the beginning of the boycott.
In Muscat, Kadm Café reported an increase of 10-15 per cent in sales, while Musannah-based ARTe Café, reported an increase of 7-10 per cent. Nizwa-based coffee shop Grano reported a jump of more than 20 percent in sales.
Co-founder of Kadm Café, Amjad al Jadidi, attributed the increase to the “redistribution of traffic”, as consumers shied away from global brands in favor of local ones.
ARTe Café owner, Saif al Haddabi, described the change as a much-awaited consumer shift that will boost local businesses. “We’ve observed a shift in consumer mentality, something we've been hoping for a long time, and thankfully, the boycott has accelerated this.' According to Al Haddabi, the boycotts have led consumers to recognize the value of local businesses. “The boycott diverted consumers from global chains, that offer poor quality coffee at high prices, to Omani brands, and made them witness firsthand the staggering difference in the price and quality.” Similarly, Grano Café CEO Ahmed al Harrasi agreed that the boycott has boosted support for local products. In addition, consumers have also begun questioning the use of certain international ingredients used in local fare. “During the boycott period, we noticed a change in consumer strategy,” he noted, adding, “This prompted us to directly change the supported products. For example, for our mojito drink, we no longer use (a certain international beverage brand), and instead opt to use another soda brand.” Other coffee shop owners also shared that they had to replace certain products, subject to international boycotts, from their stores.
While the boycott has inevitably boosted local businesses, it has also resulted in several job cuts. A recent report by the Oman Chamber of Commerce and Industry indicated that boycotted companies are resorting to cost-cutting measures like reducing work hours and branch closures.
Last week, Reuters reported that Kuwait-based Alshaya Group, a leading international franchise operator, is planning to cut over 2,000 jobs in the region due to the impact of the boycott.
Earlier, in November, MySpace Oman, a local Omani coffee brand, published a social media post inviting baristas from boycotted companies to work for them.
Omar al Malki, Branch Manager of MySpace, explained the reasoning behind this. “When the boycott happened, we noticed that many Omani staff members were working in these chains, and they were let go from their positions; we understood that although the issue was global, these individuals would suffer financially.” Accordingly, the company hired two full-time baristas who were formerly employed at outlets targeted by the boycott.
Furthermore, MySpace Oman hopes to showcase lesser-known Omani brands, by platforming talented Omani staff, said Al Malki.
Although the majority of brands attributed the increase in their sales to the boycott, it is also worth mentioning that the boycott period coincided with the winter season in Oman, which is also the peak tourism season. Amjad al Jadidi, co-founder of Kadm café, located in Bait Muzna Gallery, noted that they usually experience higher sales during winter due to the pleasant weather.
While speaking to the Observer, several coffee shop owners shared that there has been an increase in sales since the beginning of the boycott.
In Muscat, Kadm Café reported an increase of 10-15 per cent in sales, while Musannah-based ARTe Café, reported an increase of 7-10 per cent. Nizwa-based coffee shop Grano reported a jump of more than 20 percent in sales.
Co-founder of Kadm Café, Amjad al Jadidi, attributed the increase to the “redistribution of traffic”, as consumers shied away from global brands in favor of local ones.
ARTe Café owner, Saif al Haddabi, described the change as a much-awaited consumer shift that will boost local businesses. “We’ve observed a shift in consumer mentality, something we've been hoping for a long time, and thankfully, the boycott has accelerated this.' According to Al Haddabi, the boycotts have led consumers to recognize the value of local businesses. “The boycott diverted consumers from global chains, that offer poor quality coffee at high prices, to Omani brands, and made them witness firsthand the staggering difference in the price and quality.” Similarly, Grano Café CEO Ahmed al Harrasi agreed that the boycott has boosted support for local products. In addition, consumers have also begun questioning the use of certain international ingredients used in local fare. “During the boycott period, we noticed a change in consumer strategy,” he noted, adding, “This prompted us to directly change the supported products. For example, for our mojito drink, we no longer use (a certain international beverage brand), and instead opt to use another soda brand.” Other coffee shop owners also shared that they had to replace certain products, subject to international boycotts, from their stores.
While the boycott has inevitably boosted local businesses, it has also resulted in several job cuts. A recent report by the Oman Chamber of Commerce and Industry indicated that boycotted companies are resorting to cost-cutting measures like reducing work hours and branch closures.
Last week, Reuters reported that Kuwait-based Alshaya Group, a leading international franchise operator, is planning to cut over 2,000 jobs in the region due to the impact of the boycott.
Earlier, in November, MySpace Oman, a local Omani coffee brand, published a social media post inviting baristas from boycotted companies to work for them.
Omar al Malki, Branch Manager of MySpace, explained the reasoning behind this. “When the boycott happened, we noticed that many Omani staff members were working in these chains, and they were let go from their positions; we understood that although the issue was global, these individuals would suffer financially.” Accordingly, the company hired two full-time baristas who were formerly employed at outlets targeted by the boycott.
Furthermore, MySpace Oman hopes to showcase lesser-known Omani brands, by platforming talented Omani staff, said Al Malki.
Although the majority of brands attributed the increase in their sales to the boycott, it is also worth mentioning that the boycott period coincided with the winter season in Oman, which is also the peak tourism season. Amjad al Jadidi, co-founder of Kadm café, located in Bait Muzna Gallery, noted that they usually experience higher sales during winter due to the pleasant weather.