KFC Malaysia has closed its stores temporarily in response to challenging economic conditions, following reports associating the American food chain with boycotts related to Israel-Palestine issues. While the exact number of affected stores was not specified, local media reported that more than 100 outlets were temporarily closed. The franchise operates 600 outlets across the country.
According to The Straits Times report, 20% of the renowned fast-food chain’s restaurants are temporarily closed. Malaysian newspaper Nanyang Siang Pau reported that QSR Brands is closing 108 KFC outlets, based on data from Google Maps showing several eateries marked as “temporarily closed.”
The Muslim-majority nation of Malaysia has been a consistent supporter of Palestinians, leading to boycotts against specific Western fast-food brands, such as KFC, due to Israel’s actions in Gaza, as reported by the publication.
Regarding the dynamics of the BDS boycott: Although KFC is not officially listed by the Boycott, Divestment, Sanctions (BDS) movement, numerous Malaysians still perceive all American fast-food chains, including KFC, as having connections to Israel. Reports indicate that this perception has negatively impacted business.
The boycott, initiated in October 2023 amidst criticism of Israel’s military actions in Gaza post-October 7, has prompted KFC to adjust its branding strategy, according to The Straits Times.
“KFC is not among the targeted companies listed by the BDS movement. However, many Malaysians perceive any American fast-food chain, including KFC, to be associated with Israel,” stated Professor Mohd Nazari Ismail, chairman of BDS Malaysia, to The Straits Times.
Earlier in the year, McDonald’s and Starbucks, both on the BDS list, reported significant economic losses in areas where the boycott was effective. Berjaya Food, which owns 400 Starbucks stores in Malaysia, disclosed RM42.6 million in net losses for October-December 2023. Reports in local newspapers suggested that owner Vincent Tan is contemplating privatizing the company.
The impact of the boycott varies across regions in Malaysia, with North-East Kelantan state and Selangor experiencing numerous temporary closures, impacting business operations and job opportunities.
Since October, the BDS list has expanded to encompass numerous Western brands with substantial ties to Israel or have demonstrated visible support for Israel and the Israeli Defence Forces (IDF), amidst accusations of genocide against Palestinians in Gaza.
Israeli Prime Minister Benjamin Netanyahu had previously linked BDS with anti-Semitism, asserting that it fosters hatred towards Jewish individuals and discriminates against them, as reported by the Indian Express. In retaliation, BDS, on their website, stated that critiques of Israel’s violations of international law should not be conflated with anti-Semitism, highlighting that Israel, like any other nation, is subject to criticism.
