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

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.