29-4-2024 (KUALA LUMPUR) KFC’s presence in Malaysia is undergoing a significant shift as the fast-food giant suspends operations in more than 100 outlets across the country. This move comes amidst sustained pressure from a pro-Palestine boycott campaign targeting US-affiliated businesses due to the conflict in Gaza.
According to reports from the Chinese-language daily Nanyang Siang Pau, QSR Brands, the entity behind KFC in Malaysia, has opted to temporarily close 108 outlets nationwide, as indicated on Google Maps.
Speaking on condition of anonymity, a source within QSR revealed that the company views the boycott as an opportunity to address operational challenges faced by certain KFC stores. Checks conducted by ST at several locations in Kuala Lumpur, including Jalan Ipoh, Jalan Sultan, and Taman Melawati, confirmed the closure of these outlets, with signs indicating temporary closure and visible stacks of boxes inside.
The decision to scale back operations follows a broader trend of anti-US sentiment fuelled by the conflict in Gaza. Professor Mohd Nazari Ismail, Chairman of Boycott, Divestment, Sanctions Malaysia, noted that while KFC isn’t specifically listed for boycott by the BDS movement, many Malaysians associate American fast-food chains with Israel due to perceived connections.
In response to the boycott, KFC has adjusted its branding strategy, highlighting its ownership by Johor Corporation, a state-owned entity. Despite these efforts, the impact on KFC’s operations is evident, with over 600 outlets affected across Malaysia.
The boycott, which began in October 2023, has also prompted KFC to adapt its messaging, emphasising its local ownership to assuage concerns. Beyond Malaysia, QSR operates KFC restaurants in Singapore, Brunei, and Cambodia, alongside more than 480 Pizza Hut outlets in Malaysia and Singapore.
Among the worst-affected regions, Kelantan state in Northeast Malaysia has seen nearly 80% of its outlets suspend operations, with Johor following closely with 15 outlets affected. Selangor, known for its industrial significance, has witnessed the closure of 11 branches, with a concentration in the Malay-majority city of Shah Alam.
