In response to the challenging economic conditions in Malaysia, KFC has temporarily closed outlets in the country. This decision was made by QSR Brands (M) Holdings Bhd, which operates KFC and Pizza Hut franchises in the nation. The company stated that the closures were a proactive measure to manage increasing business costs and focus on high engagement trade zones.
Although the exact number of affected stores was not disclosed, local media reports indicated that over 100 outlets were temporarily closed. Employees from the impacted stores were given the option to move to outlets in areas with higher customer engagement. This move aims to streamline operations and cope with the current economic challenges facing the fast-food industry in Malaysia.
The temporary closure of KFC outlets has been linked to boycotts over perceived connections to Israel. Malaysia, a majority-Muslim country, strongly supports the Palestinians and some Western fast-food brands in the nation have been targeted by boycott campaigns due to Israel’s military actions in Gaza. However, QSR Brands did not comment on these media reports regarding the boycotts.