KFC Shuts Over 100 Outlets in Malaysia Amid Pro-Palestine Boycott

In response to the ongoing dispute, over 100 Kentucky Fried Chicken (KFC) locations countrywide have “temporarily closed” as part of a months-long economic boycott. This action comes as Malaysians have become more aware of the current happenings surrounding the Gaza issue.

KFC’s Reaction to the Closings

QSR Brands, which owns and operates KFC in Malaysia, Singapore, Brunei, and Cambodia, announced that in response to adverse economic conditions, it had taken preemptive actions to temporarily close shops in order to manage rising business costs and focus on high engagement trade zones.

According to a statement issued on April 29, personnel from affected outlets have been offered the opportunity to shift to busier functioning stores as part of the company’s re-optimisation efforts. 

“As a company that has been serving Malaysians for over 50 years, the focus remains on providing quality products and services to customers, while contributing positively to the Malaysian economy through job security for 18,000 team members in Malaysia, of which, approximately 85 percent are Muslims,” the statement read.

The Closings’ Impact on Malaysia’s Economy

According to the QSR website, Malaysia has approximately 600 KFC shops, the first of which opened in Kuala Lumpur in 1973. CNA checked three outlets within a 5km radius of Shah Alam, Selangor, and discovered two with “closed” signs, while the other was open but empty.

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According to Sunway University economics professor Yeah Kim Leng, the boycotts, which began in October, are now having a stronger negative impact on employment and the supply chains of these eateries. “Of course it is the right of consumers, but we have to be mindful that these boycotts have greater negative effects on the economy rather than the intended purpose,” he was quoted as saying.  

According to many media reports, several McDonald’s and Starbucks locations in Malaysia have closed.     

These popular chains have seen a drop in sales as a result of boycotts against US-linked companies over the country’s stance in the Israel-Hamas conflict.

“KFC is not on the (Palestinian-led) boycott, divestment, and sanctions (BDS) list of targeted firms. However, many Malaysians believe that any American fast-food operator, including KFC, is linked to Israel, according to Professor Mohd Nazari Ismail, chairman of the pro-Palestinian group Boycott, Divestment, Sanctions Malaysia, as reported by regional media.

Malaysia and Indonesia, both Muslim-majority countries, have been vociferous in criticizing Israel for the atrocities in Gaza, which have killed over 34,000 people, nearly two-thirds of whom are women and children, in retribution for Hamas’ cross-border attacks on October 7 of last year.