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Monday, December 16, 2024

KFC Malaysia temporarily closes outlets, citing economic challenges

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KFC Malaysia has decided to temporarily shut down its outlets across the country, attributing the move to challenging economic circumstances. This decision follows reports in local media suggesting that the closures were prompted by boycotts over perceived connections between the fast-food chain and Israel.

As a predominantly Muslim nation, Malaysia strongly backs the Palestinian cause. Consequently, certain Western fast-food brands within the country, like in other Muslim-majority nations, have faced boycott efforts due to Israel’s military actions in Gaza.

QSR Brands (M) Holdings Bhd, the operator of KFC and Pizza Hut franchises in Malaysia, announced the temporary closure of KFC outlets, citing “challenging economic conditions” as the reason.

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“In response to rising business costs and to concentrate on high-engagement trade zones, QSR Brands and KFC Malaysia have proactively opted to temporarily close outlets,” stated a late Monday release.

Although it didn’t provide exact figures, the company didn’t specify the number of affected stores. However, local media outlets reported that over 100 outlets had been temporarily shut down.

QSR Brands stated that employees from the impacted stores were given the chance to transfer to outlets located in areas with higher customer engagement.

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