KFC Shutters Over 100 Restaurants in Malaysia Over Tough Economic Conditions, Boycotts

KFC suspended the operation of its more than 100 stores in Malaysia and said the closure is temporary.

QSR Brands Holdings Bhd, the local operator of the fried chicken chain in the region, cited tough economic conditions and boycotts as the main reasons for its decision to shutter the stores.

As per ABS-CBN News, the boycotts called for people to stop patronizing the KFC brand as some people believe the restaurant has links to Israel.

It was mentioned that Malaysia, which is home to many Muslims, is a loyal supporter of the Palestinians. As a result, some Western fast-food chains in the country are being targeted by boycott campaigns.

“KFC is not on the BDS list of targeted companies. But many Malaysians see any American fast-food operator to be related to Israel, including KFC,” Maktoob Media quoted Professor Mohd Nazari Ismail, head of of the pro-Palestinian group Boycott, Divestment, Sanctions Malaysia, as saying in a statement to the media.

Confirmation of Store Closures

QSR Brands is also the Malaysian franchisee of Pizza Hut, but for now, it is only closing its KFC outlets. It should be noted that QSR Brands still intends to reopen the restaurants later once the company's situation improves.

"QSR Brands and KFC Malaysia have taken proactive measures to temporarily close outlets as a means to manage increasing business costs and focus on high engagement trade zones," QSR Brands said in a statement that was released earlier this week.

Affected Stores and Displaced Crew Members

Since the KFC stores are closing, many crew members may lose their jobs. QSR Brands said it will allow staff to transfer to other stores located in areas with higher customer engagement.

Finally, Verdict Food Service reported that KFC Malaysia already closed down 15 stores in Johor, 11 locations each in Selangor and Kedah, 10 in Terengganu, 10 in Pahang, nine in Perak, six in Negeri Sembilan, five in Penang, three in Kuala Lumpur, two in Perlis, Malacca and Sarawak, and one in Sabah.

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