KFC has reduced its operations in Malaysia, shuttering more than 100 restaurants temporarily after months of a persistent pro-Palestine boycott of US-linked businesses triggered by the ongoing war in Gaza. QSR Brands, which owns and operates the KFC fast-food franchise in Malaysia, is suspending 108 outlets nationwide, the Nanyang Siang Pau Chinese-language daily said, based on information from Google Maps.

A source at QSR, who spoke on condition of anonymity, said the company was looking at the boycott as an opportunity to wind down some KFC store operations that have weighed on its balance sheet.

Three outlets in KL in Jalan Ipoh, Jalan Sultan and Taman Melawati checked by ST found signs that they were "temporarily closed". Boxes were seen piled up inside the restaurant. Employees of nearby shops said they closed a week ago due to lack of customers.

"KFC is not on the BDS list of targeted companies. But many Malaysians consider any American fast food operator, including KFC, to be associated with Israel," said Professor Mohd Nazari Ismail, chairman of the pro-Palestinian group Boycott, Divestment, Sanctions Malaysia, ST.

Since the boycott began in October 2023, KFC has also changed its branding strategy, including signs on their menu boards and distributing flyers owned by the Johor State Government that is owned by the Johor Corporation to mitigate the boycott.

According to the QSR website there are over 600 KFC restaurants in Malaysia. KFC, along with several other US-based brands such as Starbucks and McDonald's, have also faced boycotts over their perceived links to Israel since the outbreak of war in Gaza on October 7, 2023.

QSR operates KFC restaurants in Singapore, Brunei and Cambodia as well as more than 480 Pizza Hut stores in Malaysia and Singapore. Nanyang Siang Pau said the northeastern state of Kelantan was the worst affected with about 80 percent or 21 outlets closing their operations, followed by Johor with 15 outlets.

Selangor, Malaysia's most industrialized state, has temporarily closed 11 branches, including 10 in Malay-majority Shah Alam.

Copyright: The Straits Times/Asia News Network