KUALA LUMPUR, Nov. 25 -- Starbucks' Malaysian operator says business is finally beginning to climb back after nearly two years of boycott-driven losses linked to the Gaza conflict - but analysts warn that the recovery may not be enough to reclaim its former dominance in the country's booming coffee market.

Sydney Lawrance Quays, chief executive of Berjaya Food Bhd, told Bloomberg the rebound remains fragile but visible.

"The recovery is slow, but we do see that there is a positive sign moving forward," he said in an interview in Kuala Lumpur yesterday.

Fresh first-quarter numbers released the same day showed net loss narrowing by more than half to RM14.8 million, while revenue ticked up 3.3 per cent year-on-year.

It is a welcome break...