108 KFC Outlets Shut Down in Malaysia

KFC outlets in Malaysia are owned by QSR Brands. An unknown source from QSR Brands told The Strait Times that the firm has been under a financial burden due to an ongoing boycott.

108 KFC outlets have a “Temporarily Closed” sign on them.

“in response to challenging economic conditions, we are shutting down KFC outlets. Employees from the closed stores were offered the new job to shift to operating stores as part of a strategy to utilize resources in trade zones with higher customer engagement,”

QRS Brands announced this in a statement on April 29, 2024.

In Kuala Lumpur, three outlets located in Jalan Ipoh, Jalan Sultan, and Taman Melawati had signs saying “Temporarily Closed”, workers in the nearby stores claimed the outlets had been closed a week ago due to nearly no customers. 11 outlets were also closed in the state of Kedah.

Malaysia has about 600 KFC locations, according to the QSR website.

Since the war in Gaza began on October 7, 2023, KFC and a few other US-based businesses, like Starbucks and McDonald’s, have faced boycotts due to their perceived ties to Israel.

Berjaya Food, which operates 400 Starbucks locations in Malaysia, posted a financial loss of RM42.6 million from October to December 2023, and owner Vincent Tan is said to be contemplating taking the firm private.

QSR also runs KFC outlets in Singapore, Brunei, and Cambodia, as well as over 480 Pizza Hut locations in Malaysia and Singapore.

According to Nanyang Siang Pau, north-east Kelantan state has been impacted the worst, with roughly 80%, or up to 21 locations, ceasing operations, followed by 15 outlets in Johor.

Selangor, Malaysia’s most industrialized state, has 11 temporarily closed branches, ten of which are in Malay-majority Shah Alam.