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

Author

Listed:
  • Ibrahim A. Elshaer

    (Department of Management, College of Business Administration, King Faisal University, Al-Ahsaa 380, Saudi Arabia)

  • Alaa M. S. Azazz

    (Department of Social Studies, Arts College, King Faisal University, Al-Ahsaa 380, Saudi Arabia)

  • Sameh Fayyad

    (Hotel Studies Department, Faculty of Tourism and Hotels, Suez Canal University, Ismailia 41522, Egypt
    Hotel Management Department, Faculty of Tourism and Hotels, October 6 University, Giza 12573, Egypt)

  • Chokri Kooli

    (The Telfer School of Management, The University of Ottawa, 75 Laurier Avenue East, Ottawa, ON K1N 6N5, Canada
    Department of Management, Royal Faculty of Social Sciences, Military College of Canada, Kingston, ON K7K 7B4, Canada)

  • Amr Mohamed Fouad

    (Hotel Management Department, Faculty of Tourism and Hotel Management, Pharos University in Alexandria, Canal El mahmoudia Street, Beside Green Plaza Complex, Alexandria 21648, Egypt)

  • Amira Hamdy

    (Interior Architecture Design Sector, Décor Department, Faculty of Arts and Design, Pharos University in Alexandria, Canal El Mahmoudia Street, Beside Green Plaza Complex, Alexandria 21648, Egypt)

  • Eslam Ahmed Fathy

    (Hotel Management Department, Faculty of Tourism and Hotel Management, Pharos University in Alexandria, Canal El mahmoudia Street, Beside Green Plaza Complex, Alexandria 21648, Egypt)

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.

Suggested Citation

  • Ibrahim A. Elshaer & Alaa M. S. Azazz & Sameh Fayyad & Chokri Kooli & Amr Mohamed Fouad & Amira Hamdy & Eslam Ahmed Fathy, 2025. "Consumer Boycotts and Fast-Food Chains: Economic Consequences and Reputational Damage," Societies, MDPI, vol. 15(5), pages 1-31, April.
    • Handle: RePEc:gam:jsoctx:v:15:y:2025:i:5:p:114-:d:1639532
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    References listed on IDEAS

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