​KFC Malaysia Temporarily Closes Outlets Amid Economic Strain

​KFC Malaysia Temporarily Closes Outlets Amid Economic Strain

Posted by Emily on 2nd May 2024

KFC Malaysia has temporarily closed numerous outlets nationwide due to challenging economic circumstances. This decision follows reports from local media suggesting the closures were in response to boycotts tied to the fast food chain's alleged connections with Israel.

KFC Stulang Laut Chongkian, CC BY-SA 4.0, via Wikimedia Commons

As a predominantly Muslim nation, Malaysia is a fervent advocate for Palestinian rights. This sentiment is reflected in the periodic boycotts targeted at Western fast food brands like KFC, especially in light of ongoing conflicts in Gaza.

QSR Brands (M) Holdings Bhd, which manages KFC and Pizza Hut franchises in Malaysia, stated that these temporary shutdowns are a strategic response to the prevailing economic challenges. "QSR Brands and KFC Malaysia have taken proactive measures to close outlets to manage increasing business costs temporarily and focus on high engagement trade zones," the company explained in a Monday statement. The release did not comment on the boycott-related media reports.

While the exact number of impacted outlets wasn't disclosed, reports suggest that over 100 locations have been affected. QSR Brands also highlighted their efforts to mitigate the impact on their workforce, offering employees from these closed outlets the option to transfer to busier locations.

We invite you to share your thoughts and insights on this development. How do you perceive the impact of such economic decisions on global brands? Please leave your comments below.