KUALA LUMPUR: Amid mounting calls to boycott brands associated with Israel, scores of KFC outlets in Malaysia have shuttered their doors. This movement gained traction following Israel’s offensive in Gaza, prompting Malaysians to boycott Western companies perceived as having links with Tel Aviv.
Since October last year, over 100 KFC branches have closed across Malaysia, citing increased operational costs amidst challenging economic conditions. Although not explicitly stated, these closures are widely attributed to the decline in sales due to the boycott.
QSR Brands Holdings, the operator of KFC Malaysia, announced the temporary closures and offered affected staff opportunities to relocate to busier stores. This decision reflects a broader trend among major international brands in Malaysia experiencing revenue losses due to the boycott.
Starbucks Malaysia reported a significant drop in revenue, while McDonald’s franchises in the country also suffered losses and job cuts. The boycott, spearheaded by the local chapter of the Boycott, Divestment, Sanctions movement, targets not only McDonald’s but also other popular brands like Burger King, Puma, Airbnb, and Pizza Hut.
Although KFC is not formally on the BDS Malaysia boycott list, many Malaysians perceive it as American-based and thus linked to Israel. The sentiment against KFC is exacerbated by its parent company, Yum Brands, reportedly investing in Israeli startups.
While some attribute the boycott to concerns about quality, others see it as a symbolic protest against American-based corporations. Malaysia, with its majority Muslim population, has long supported the Palestinian cause and maintains no formal relations with Israel.
In December, Malaysia reinforced its stance by prohibiting Israeli ships from docking at its ports.
