KFC Closes Multiple Malaysia Locations Amid Gaza Boycotts

After facing a months-long economic boycott over perceived links to Israel, numerous Kentucky Fried Chicken (KFC) outlets in Malaysia have closed down recently.

According to a report by Reuters, QSR Brands (M) Holdings Bhd, the company behind KFC and Pizza Hut franchises in Malaysia, has announced temporary closures of KFC outlets in light of the current challenging economic conditions.

The exact number of outlets facing closure was not specified in the statement, but according to local media reports, it is expected that more than 100 branches will be shut down.

“QSR Brands and KFC Malaysia has taken proactive measures to temporarily close outlets as means to manage increasing business costs and focus on high engagement trade zones,” it said in a statement late on Monday.

Employees from the affected stores were offered the opportunity to relocate to outlets in areas with higher customer engagement, the statement added, failing to address the local media reports of the boycotts.

Malaysia has been a staunch supporter of the Palestinians, and some Western fast-food brands in the country, as in some other Muslim nations, have been targeted by boycott campaigns over US support for Israel’s military offensive in Gaza.

“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,” Mohd Nazari Ismail, chairman of pro-Palestinian group Boycott, Divestment, Sanctions Malaysia, was quoted as saying in regional media.

KFC was the latest American food franchise to be targeted by the national boycott movement in the country over US support for Israel.

Fast-food giant McDonald’s, which sparked outrage when its Israeli franchise donated thousands of meals to the Israeli military after the start of the war on Gaza on 7 October, reported in February that the Gaza boycotts had “meaningfully impacted” its sales, particularly in the Middle East and Muslim-majority countries like Indonesia and Malaysia.

In April, McDonald’s bought out all the franchise restaurants in Israel after seeing the sales hit, taking direct control of the operations.

American coffee chain Starbucks was also hit by pro-Gaza boycott, reporting “record losses” in December after it sued the Starbucks Workers United union in October over a pro-Palestine social media post.

Malaysia has been vocal in condemning Israel for its war on Gaza which has killed more than 34,000 people – around two-thirds women and children – since 7 October.