KFC Malaysia closes over 100 outlets amid boycotts linked to Gaz*a conflict

The US chain’s owner, QSR brands, said in a statement that the decision was a response to “challenging economic conditions” and that affected employees had been offered the opportunity to relocate to busier stores.

KUALA LUMPUR: More than 100 outlets of fast-food company Kentucky Fried Chicken (KFC) in Malaysia have been “temporarily closed” amid a months-long economic boycott linked to the conflict in Gaza.

Chinese-daily Nanyang Siau Pau reported that 108 outlets of the American chain had ceased operations. Kelantan state was the worst hit, with nearly 80 per cent of their stores, or up to 21 outlets, affected.

According to the report, based on information from Google Maps, 15 stores in Johor were also temporarily shut, as well as 11 stores each in Selangor and Kedah, 10 stores in Terengganu, 10 stores in Pahang, nine stores in Perak, six stores in Negeri Sembilan, two stores in Perlis, two stores in Melaka, five stores in Penang, three stores in Kuala Lumpur, two in Sarawak and one in Sabah.

QSR Brands – which owns and operates KFC across Malaysia, Singapore, Brunei, and Cambodia – said that in response to challenging economic conditions, it had taken proactive measures to temporarily close outlets as a means to manage increasing business costs and focus on high-engagement trade zones.

In a statement on Apr 29, they said that employees from affected outlets were offered the opportunity to relocate to busier operating stores as part of the company’s re-optimisation efforts.

FBR Lists 506,671 Non-Filers for SIM Blocking; PTA to Act Immediately

“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 per cent are Muslims,” they said.

They however did not disclose the number of outlets or number of workers that were affected.

According to the QSR website, there are over 600 KFC outlets in Malaysia, with the first outlet opening in Kuala Lumpur back in 1973.

Checks by CNA on three outlets within a 5km radius in Shah Alam, Selangor, found two outlets with “closed” signs while the other outlet was open but empty.

Sunway University economics professor Yeah Kim Leng said that the country was now seeing greater adverse impacts of the boycotts, which started in October, saying that they impacted employment as well as the supply chains of these restaurants.

“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 told CNA.

A KFC outlet at Kompleks PKNS in Shah Alam, Selangor that was found to be closed on Apr 30, 2024. (Photo: CNA/ Fadza Ishak)
According to several media reports, there have also been closures of several McDonalds and Starbucks outlets in Malaysia.

These popular chains have been experiencing a slowdown in business as a result of boycotts against US-linked companies linked to the country’s stance in the Israel-Hamas war.

“KFC is not on the (Palestinian-led movement) BDS (Boycott, Divestment, Sanctions) list of targeted companies. But many Malaysians see any American fast-food operator to be related to Israel including KFC,” said Professor Mohd Nazari Ismail, chairman of pro-Palestinian group Boycott, Divestment, Sanctions Malaysia, quoted in regional media.

Vincent Tan, the founder of Berjaya Corp Bhd which operates Starbucks called on the public in March to stop boycotting the coffee chain, saying the move only hurts the locals running the company.

He has said that 85 per cent of Starbucks Malaysia’s employees are Muslim and that no foreigners are employed at the company’s head office.

Berjaya Food had posted lower revenue of RM182.55 million (US$ 38.3 million) from October to November of last year, compared to RM 295.32 million in the same quarter a year before, an almost 40 per cent drop in revenue.

On Apr 18, a Starbucks outlet in Tawau, Sabah, was vandalised by individuals who spray-painted the wall with the words “free Palestine”.

Muslim-majority nations Malaysia and Indonesia have been vocal in condemning Israel for the atrocities in Gaza that have seen more than 34,000 people – around two-thirds women and children – killed in retaliation to Hamas’s cross-border assaults on Oct 7 last year.

Origional source: channelnewsasia

• Pakistanis Spend $540 Million on Tea Imports Amidst Economic Struggles
• Grade 17 Official Fails to Spell ‘Math’ in Court Despite Claiming BA in Mathematics
• Prices of Ghee and Cooking Oil Drop Further
• Muzz Revolutionizes Pakistani Marriages with a Focus on Individual Choice
• Saudi Arabia Hosts Historic Swimsuit Fashion Show, Signaling Major Cultural Shift