Over 100 Kentucky Fried Chicken (KFC) outlets in Malaysia have been temporarily closed due to an economic boycott linked to the conflict in Gaza. The closures were reported by Chinese-daily Nanyang Siau Pau, with Kelantan state being the worst-hit, experiencing nearly 80 percent closure of their stores. Other states affected include Johor, Selangor, Kedah, Terengganu, Pahang, Perak, Negeri Sembilan, Perlis, Malacca, Penang, Kuala Lumpur, Sarawak, and Sabah.
Owned by QSR Brands, KFC in Malaysia, Singapore, Brunei, and Cambodia has taken proactive measures to temporarily close outlets in response to challenging economic conditions. The company aims to manage increasing business costs and focus on high engagement trade zones. Employees from affected outlets have been offered the opportunity to relocate to busier operating stores, as part of the company’s efforts to re-optimise its operations. Despite the closures, QSR Brands emphasizes its commitment to providing quality products and services to customers while contributing positively to the Malaysian economy through job security for its 18,000 team members in Malaysia, the majority of whom are Muslims.
QSR Brands did not disclose the exact number of outlets or workers affected by the closures. According to their website, there are over 600 KFC outlets in Malaysia, with the first outlet opening in Kuala Lumpur in 1973. Checks by CNA on three outlets in Shah Alam, Selangor, found that two outlets were closed while the third was open but empty. Sunway University economics professor Yeah Kim Leng noted that the boycotts, which began in October, were having a greater adverse impact on employment and supply chains of these restaurants. He expressed concern that the negative effects on the economy outweighed the intended purpose of the boycotts.
The closures of over 100 KFC outlets in Malaysia have been attributed to an ongoing economic boycott related to the conflict in Gaza. QSR Brands, the company that owns and operates KFC in several countries, has closed outlets in response to challenging economic conditions and to focus on high engagement trade zones. The affected employees have been given the opportunity to relocate to busier stores as part of the company’s re-optimisation efforts. Despite the closures, QSR Brands remains committed to providing quality products and services to customers while supporting the Malaysian economy through job security for its employees.
The exact number of outlets and workers impacted by the closures was not disclosed by QSR Brands. With over 600 KFC outlets in Malaysia, the closures have been reported across several states, with Kelantan being the most heavily affected. Sunway University economics professor Yeah Kim Leng expressed concerns about the negative impacts of the boycotts on employment and supply chains, noting that the intended purpose of the boycotts may be overshadowed by their adverse effects on the economy. The closures serve as a reminder of the broader implications of consumer actions on businesses and the economy, highlighting the importance of considering the consequences of such actions.
