KFC Malaysia has temporarily closed some outlets in the country amid calls to boycott the chain over Israel’s war in Gaza. The company attributed the closures to challenging economic conditions and an effort to manage increasing business costs. However, reports from local media outlets have linked the closures to boycotts, with Google Map data showing numerous affected outlets across the country.
The country has a population where more than 60 percent are Muslim, leading to widespread support for such boycotts. QSR Brands Holdings Bhd, which operates KFC and Pizza Hut restaurants in Malaysia, emphasized its commitment to serving the Malaysian community and safeguarding employees while providing quality products and services to customers. However, they did not specify the exact reasons behind the challenging economic conditions they mentioned.
Boycotts in Muslim-majority countries have been attributed to causing a decline in the earnings of Western brands perceived to have connections to Israel. McDonald’s and Unilever are among the companies that have reported negative impacts on their sales due to such boycott campaigns. In February, McDonald’s reported a minimal sales growth during the fourth quarter of 2023, crediting boycotts in the Middle East, Indonesia, and Malaysia for the lackluster performance. Unilever also cited a decline in sales in Indonesia at the same time, attributed to consumer-facing campaigns related to geopolitical issues. The trend of boycotts impacting business operations in Muslim-majority countries continues to pose challenges for Western brands with ties to Israel.
