Starbucks Denies Morocco Exit Amid Boycott, Highlighting Retail Sector Challenges

The false announcement of Starbucks’ withdrawal from Morocco is actually the tree that hides the forest. "Announcement of withdrawal or not, or of crisis, what is clear is that there is a malaise in the retail sector in Morocco. The economic model is not keeping up," assures Mohamed El Fane, president of the Moroccan Franchise Federation (FMF) with Challenge. According to him, there is a real need to review property tax and commercial tax. "We have even raised awareness with Customs about the need to reduce to less than 30% the duties on products, as this rate weighs on operators who, once installed in Morocco, do not find an ecosystem that can compensate for their needs, they are forced to export," he explains.

The Covid-19 health crisis combined with the inflation peaks of recent years have had a negative impact on brands like Starbucks present in a country where the economic model remains quite fragile. "Today there is a real need to reflect on the economic model of proximity trade. At the moment, there is a big gap between the vision of the General Directorate of Taxes and the ministry with regard to the reality of the market," analyzes El Fane, also recommending a long-term study, involving the professionals concerned, and which could allow to have a realistic and sustainable vision.

The Alshaya group currently owns 18 Starbucks cafes on Moroccan territory.