Local boycott forces closure over 100 KFC stores

Economic and operational struggles hit QSR brands following six-month boycott

29 Apr 2024 07:49pm
Photo for illustration purpose only. - File pix
Photo for illustration purpose only. - File pix

SHAH ALAM - QSR Brands (M) Holdings Bhd, a major player in the food and beverage industry, has been hit hard by a widespread boycott.

The company has been forced to temporarily close over 100 KFC outlets across Malaysia, a move triggered by a six-month boycott linked to the ongoing Israel's genocide in Gaza, as reported by local media.

The boycott has significantly impacted the chain's revenues, with dwindling patronage from former KFC enthusiasts.

The boycott has not only led to a significant decrease in customers, but also a shortage of available workers.

This double blow has created operational challenges and economic strain for QSR Brands, forcing the company to make the difficult decision of temporary closures.

In response to the boycotts, QSR Brands has reportedly reassessed its identity.

Despite being part of an American-associated franchise, the company has stressed its complete Malaysian ownership and distanced itself from American interests.

The suspensions began on April 27 and will persist until the boycott situation stabilises.

Related Articles:

The impact has been severe in certain regions, with Kelantan and Johor experiencing closures of about 80 per cent and 15 per cent of their outlets, respectively.

The repercussions extend beyond KFC to other franchises, including Starbucks and McDonald’s.

In solidarity with Palestine and protest against American-linked businesses, these outlets have faced significant financial losses, totalling 11 billion US dollars, as reported by The Economic Times.

In a related move, Berjaya Food Berhad has permanently closed three Starbucks locations: one in Kuantan, Pahang, and another in Subang Parade, Selangor.

QSR did not immediately respond to media's request for comment.

More Like This