Angry Arabs Boycotting U.S. Franchises <b></b>
Cairo-As if running a business isn't hard enough,some American affiliates in the Arab world are being punished forthe United States' Middle East policy.
A grassroots boycott of American-made products is hurting manyU.S. companies and franchise holders.
"People are convinced that whenever you buy a sandwich froman American-affiliated chain, you're helping pay for a bulletto shoot a Palestinian child," says Mahmoud El Kaissouni, vicechairman of Americana Foods, which operates Egyptian franchises forKFC, Hardees and Pizza Hut.
Fast-food restaurants such as Pizza Hut and McDonald's havebeen the most high-profile targets of the boycott, which has grownout of Arab frustration with perceived American support for Israelduring the current intifada.
Fliers circulated in schools and universities have urgedEgyptians to boycott a host of American-affiliated companies andproducts, including Marlboro cigarettes, Procter & Gamble,Hostess snack foods, Gillette, Coca-Cola, Pepsi, Heinz condiments,Disney products and Nike shoes.
The most immediate effect has been on the sellers of short-termconsumables, like fast food.
Accurate figures on the impact of the boycott are difficult toobtain. The fasting month of Ramadan, which ended December 27,tends to be a quiet period for fast-food chains. An unscientificsurvey of several Cairo stores showed a slight but discernible dipin the sales of Procter & Gamble's laundry soap. Marlborosales had also dropped.
A McDonald's executive said the month leading up to Ramadanregistered a sharp enough decline in sales to worry management andalter company plans. The openings of five new franchises weredelayed until after Ramadan in the hope that the controversy wouldhave faded from public consciousness.
Kaissouni declined to discuss how much business Americanrestaurants have lost in the past three months. He did say thefast-food chains that make up the Egyptian Chamber of TouristEstablishments have lost a combined 20 percent in business comparedwith the same period last year.
"It's something that started out patriotically,"said Kaissouni, who maintained that his other companies were beingunfairly targeted. "We all feel the same anger at Israel andAmerica." -Chicago Tribune
