Business
KFC Malaysia temporarily closes over 100 outlets amid ongoing boycott
Amidst a pro-Palestine boycott, KFC in Malaysia faces closures, with 108 outlets shut temporarily. QSR Brands cites economic challenges and aims to optimize resources, offering affected employees relocation options.
MALAYSIA: KFC’s presence in Malaysia faces a significant setback as QSR Brands, the entity overseeing the fast-food franchise’s operations in the country, announces the temporary suspension of 108 outlets nationwide.
This decision follows months of sustained pressure from a pro-Palestine boycott targeting US-affiliated businesses, sparked by the ongoing conflict in Gaza.
Data from Google Maps indicates the closure of numerous KFC stores, including those in Kelantan and Terengganu, governed by the Malaysian Islamic Party (Parti Islam Se-Malaysia) state government.
These closures are reflected by their updated status to “temporarily closed.”
According to an anonymous source at QSR, the company views the boycott as an opportunity to address underperforming KFC stores that have been impacting its financial performance.
In a statement, QSR cited “challenging economic conditions” as the reason behind the proactive measures to temporarily close outlets.
The company aims to manage escalating business costs and concentrate on the more active KFC stores.
The statement also mentioned that affected employees were given the option to transfer to operating stores as part of a strategic move to optimize resources in areas with higher customer engagement.
Despite not being listed on the Boycott, Divestment, and Sanctions (BDS) list of targeted companies, KFC’s association with the US has led many Malaysians to perceive it as related to Israel.
Professor Mohd Nazari Ismail, chairman of the pro-Palestinian group Boycott, Divestment, Sanctions Malaysia, acknowledged this sentiment.
Since October 2023, KFC in Malaysia has adapted its branding to emphasize ownership by Johor Corporation, aiming to counter the impact of a boycott stemming from the Gaza conflict.
The company underscores its commitment to Islamic principles on its online platforms, emphasizing its employment of over 30,000 individuals, with 86% of them identifying as Muslims.
Entrepreneur Amri Hasim, based in Kedah, has observed a notable increase in job applications from KFC employees in the region, where 11 outlets have ceased operations.
He disclosed that outlets in the area have scaled back their operating hours from 24 to 12, leading to substantial reductions in wages.
Previously earning approximately RM2,000 (US$420) monthly, workers are now experiencing a significant decrease in take-home pay, with earnings ranging between RM600 (US$125) and RM700 (US$146).
Despite over 600 KFC restaurants in Malaysia, the chain, along with Starbucks and McDonald’s, faces boycotts over perceived ties to Israel following the Gaza conflict.
Berjaya Food, owner of 400 Starbucks stores, reported substantial losses, prompting owner Vincent Tan to consider privatization.
QSR, operating KFC outlets across several countries, including more than 480 Pizza Hut stores in Malaysia and Singapore, has seen severe impacts in states like Kelantan, where up to 80% of outlets have ceased operations, and Johor, with 15 closures.
In Selangor, Malaysia’s industrial hub, 11 branches, predominantly in Shah Alam, have temporarily shut down.
Amidst the ongoing conflicts in Gaza, several other global brands, including Starbucks and McDonald’s, are facing intense boycotts due to their alleged support or perceived association with Israel, in addition to KFC.
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M’sia simply wants more Forest City-type of INFLOW investments (with little subsequent employment opportunity for its ppl), rather than KFC type where there is OUTFLOW of capital back to USA (but with good subsequent employment for ppl). This is their Boleh thinking.
How many M’sia PM’s and/or DPM’s have been charged with corruption in the just the recent past 10-15 years? Yeah, Ok, USA has One (ex-president) too.
KFC has so much competition in Malaysia.
Marrybrown, Texas Chicken, Kenny Rogers, Street-food chicken. The list is endless. The market is too saturated. Fast food is not as affordable to Malaysians as it is to Singaporeans.
It makes sense that they would want to scale back operations. It probably has nothing to do with “boycotts.”
Morons boycott these fast food chains think it’s going to end the war?
These moronic people are really something. The west should just pull their technology and resources and send these tribe back to the stone age. Their religion is already helping them so the west just needs to join the dotted lines to complete their wish.
Anyway, US should stop selling spare parts for US-made aircraft in current use by M’sia. Why should west wants to do business with a country which supports a terrorist organization? Heard Russian stuff are very cheap nowadays, since NOBODY in the world is buying their stuff after seeing their “exemplary” performance in Ukraine. M’sia should align itself towards Russian gear, can phased out their dependence of Western equipment and KFC.
But we don’t see countries boycotting M’sia products/services after the Hamas terrorist 7 Oct attack. No protests at campuses then? Tsk, tsk.
This country is going…..NOWHERE.
No wonder all investors running away.
RM$5 to S$1 on the way.
Any local Sinkie fucktard brought Sultan of Johor property?😆😆😆🤣🤣🤣😆😆😆
Who bears the losses of shutting down, temp or perm.
Russia has sanctions against it. No country sanctioned Israel for it’s full display of genocide to the world. So kudos to the Malaysians and others who are hurting the pockets of those supporting the war. Macdonald was forced to shutdown. Starbucks may be next. If it continues, corporate owners.may force the Israeli government to stop the War. This may be a better way of persuasion that political pressure which is not working because of US, UK and Germany’s support of the genocide.
So, anything and everything with the leanest of links with the US, … will be targeted and boycotted then !!!
So, who and what’s next, … iPhones, CocaCola, Pepsi, BurgerKing, A&W, SubWay, Nike, DunkinDonuts, ……………..
Temporary?!? Becos they can reinstall whatever lost when they have the dough. No???
Especially coming from the One with its infamous Sorry Not sorry statement.
Just like Macdonald, Burger king … A never folding biz. No?!? This is the safe zone becos never close. Even close it is temporary and will resurrect from the dead. No???