KFC Malaysia closure: Fried chicken collateral in global McDonald's, Starbucks boycott

KFC Malaysia has temporarily closed its Malaysian stores due to poor economic conditions, following reports that the US food chain is linked to a boycott linked to Israel and Palestine.

The number of affected stores was not determined, but local media reported that more than 100 stores were temporarily closed. It has 600 franchise stores nationwide.

According to a report in The Straits Times, 20% of popular fast food chains have temporarily closed. Malaysia's Nanyang Siang Pao newspaper said QSR Brands will close 108 KFC stores. Using information gathered from Google Maps, we identified a number indicating that the restaurant was “temporarily closed.”

The newspaper said that the Muslim-majority state of Malaysia has long supported the Palestinians, which has led to a boycott of some Western fast food brands, including Kentucky Fried Chicken, due to Israel's actions in Gaza.

BDS Boycott Dynamics: KFC is not on the list, but is still successful

Although not officially included in the Boycott, Divestment and Sanctions (BDS) movement, many Malaysians associate all American fast food chains, including KFC, with links to Israel. Reports said this is what hurt business.

The boycott, which began in October 2023 amid criticism of Israeli military movements in Gaza after October 7, led to a shift in KFC's brand strategy, according to The Straits Times.

Professor Mohd Nazri Ismail, head of the Malaysian BDS movement, told The Straits Times: "KFC is not on the list of companies targeted by the BDS movement. But many Malaysians see any American fast food company as having a connection to Israel, including KFC." ".

Earlier in the year, McDonald's and Starbucks (the two companies on the boycott list) reported significant economic fallout in areas that had seen an effective boycott. Berjaya Foods, which owns Starbucks stores in Malaysia, reported losses, prompting it to consider going private.

The report added that the impact of the boycott varies depending on the regions in Malaysia. The northeastern state of Kelantan and Selangor witnessed several temporary closures, affecting business operations and employment opportunities.

FAQs

Q. Why is KFC Malaysia closed?

A. KFC Malaysia has temporarily shuttered its outlets in Malaysia due to harsh economic conditions after reports linking the American food chain to Israel-Palestine-related boycotts, as per a Reuters report

Q. Who owns KFC Malaysia now?

A. According to a report by a local Chinese daily, QSR Brands, which owns and operates the KFC fast-food franchise in Malaysia, has temporarily suspended 108 outlets nationwide as of April 27. The report noted that Kelantan is the hardest hit with nearly 80% or up to 21 outlets suspended, followed by 15 outlets in Johor.

Q. What is the controversial ingredient in KFC?

A. Monosodium Glutamate, more commonly known as MSG, is a controversial ingredient and is generally considered safe for consumption. However, the customer was outraged at her discovery, taking to social media to express her displeasure, sparking many to question whether the ingredient is good for you or not.

Q. What is the full form of KFC?

A. The full form of KFC is Kentucky Fried Chicken.

Also Read: Patanjali Foods has been issued a show cause notice regarding its GST liabilities