In Kuwait, US foodservice brands make up 7% of the industry’s outlet supply but contribute a substantial 20% to the total revenue. Throughout November, these US-based brands experienced a consistent decline in their sales, but this decline began to ease in early December.
The ceasefire played a role in a slight revenue rebound, but the primary driver behind the sales recovery since December has been “boycott fatigue.” Delivery sales have notably increased, indicating that consumers are opting for home delivery of their favorite burgers and coffee rather than dining out in public.
While sales have been gradually improving in December, they still lag behind the pre-conflict levels. The ongoing conflict is lasting longer than anticipated and continues to prompt customers to adopt new dining habits, which could hinder major brands from reclaiming their previous dominant market positions.