Amid Boycotts and Economic Struggles: KFC Malaysia Temporarily Closes Stores

In the midst of calls for a boycott of KFC over Israel’s war in Gaza, some stores in Malaysia have been temporarily closed. KSR Brands Holdings Bhd, operator of KFC and Pizza Hut in the country, cited “difficult economic conditions” as the reason for the closure. The company stated that they made the decision to manage rising business costs and focus on highly engaged trade zones.

However, without specifying the exact reason for the difficult conditions, KSR Brands emphasized its commitment to the Malaysian community and their employees. They noted that affected employees have been offered the opportunity to relocate to busier stores as part of the company’s efforts to re-optimize operations. With over 18,000 team members in Malaysia, 85 percent of whom are Muslim, the company emphasized their commitment to providing quality products and services while contributing positively to the Malaysian economy.

Local media reports have linked the closure to a boycott of Western brands perceived to have ties to Israel. This included Google Maps data showing a number of affected stores across the country. Boycotts in Muslim-majority countries have been linked to falling profits for Western brands allegedly linked to Israel. Both McDonald’s and Unilever cited boycott campaigns in the Middle East and Southeast Asia as affecting their sales in certain markets.

As KFC Malaysia temporarily closes some stores, the company faces challenges amid boycotts and economic conditions. Despite these difficulties, KSR Brands emphasizes its commitment to its employees and the Malaysian community, aiming to provide quality products and services while navigating a challenging business environment.