KFC in Malaysia has scaled back its operations, temporarily closing over 100 restaurants due to an extended pro-Palestine boycott of US-affiliated businesses fuelled by the conflict in Gaza.
QSR Brands, the entity behind KFC franchises in Malaysia, is halting operations at 108 outlets across the country, according to the Nanyang Siang Pau newspaper citing data from Google Maps.
A source within QSR, who chose to remain anonymous, suggested that the actual number of closures could surpass the reported figure of 108 stores.
ST’s investigations at three outlets – Jalan Ipoh, Jalan Sultan, and Taman Melawati – revealed closure signs and stacked boxes indoors, indicating temporary shutdowns. Neighboring store employees confirmed the closures due to dwindling customers.
“KFC isn’t listed in the BDS’s targeted companies, but many Malaysians associate any American fast-food chain with Israel, including KFC,” explained Professor Mohd Nazari Ismail, chair of the pro-Palestinian group Boycott, Divestment, Sanctions Malaysia (BDS).
Since the boycott’s onset in October 2023, KFC has adjusted its branding strategy, highlighting ownership by Johor Corporation, under the Johor state government, on menu boards and flyers to alleviate boycott impacts.
According to QSR’s website, Malaysia boasts over 600 KFC outlets.
KFC, along with Starbucks and McDonald’s, is facing boycotts due to perceived ties to Israel since the Gaza war began on Oct 7, 2023.
Additionally, QSR operates KFC outlets in Singapore, Brunei, and Cambodia, along with over 480 Pizza Hut stores in Malaysia and Singapore.
In the northeast Kelantan state, nearly 80 percent, or up to 21 outlets, have halted their operations, making it the worst-affected area.
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