In response to the challenging economic conditions, KFC Malaysia has temporarily closed outlets in the country. This decision was announced by QSR Brands (M) Holdings Bhd, the company that operates KFC and Pizza Hut franchises in Malaysia. The temporary closure of KFC outlets is a response to the difficult economic environment and part of proactive measures to manage increasing business costs and concentrate 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, according to QSR Brands. This move aims to streamline operations and cope with the current economic challenges facing the fast-food industry in Malaysia.
The closure of KFC outlets has sparked controversy as it was linked to boycotts over the fast food chain’s 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 boycotts.