More than 100 outlets of Kentucky Fried Chicken (KFC) in Malaysia have been temporarily closed due to an economic boycott linked to the conflict in Gaza. The Chinese-daily Nanyang Siau Pau reported that 108 outlets of the American chain had ceased operations, with Kelantan being the worst-hit state. Other affected states include Johor, Selangor, Kedah, Terengganu, Pahang, Perak, Negeri Sembilan, Perlis, Malacca, Penang, Kuala Lumpur, Sarawak, and Sabah.
QSR Brands, the company that owns and operates KFC in Malaysia, Singapore, Brunei, and Cambodia, stated that the closures were in response to challenging economic conditions and increasing business costs. The company mentioned that employees from affected outlets were offered the opportunity to relocate to busier stores as part of their re-optimization efforts. With a focus on providing quality products and services, QSR Brands emphasized its commitment to job security for its team members, with approximately 85% of them being Muslims.
While QSR did not disclose the exact number of outlets or workers affected by the closures, it was reported that Malaysia has over 600 KFC outlets, with the first one opening in Kuala Lumpur in 1973. Checks by media outlets on several KFC outlets found some with “closed” signs, indicating the widespread impact of the closures. Sunway University economics professor Yeah Kim Leng commented on the adverse effects of the boycotts, stating that they not only impact employment but also disrupt the supply chains of these restaurants.
The economic boycotts on KFC and other American fast-food chains began in October as a response to the conflict in Gaza. Consumers have been voicing their concerns and taking action by boycotting these establishments, leading to a significant decline in business for these chains. The closures of KFC outlets in Malaysia highlight the ripple effects these boycotts can have on the economy, affecting workers, supply chains, and overall business viability.
As the boycotts continue, there is a growing realization of the negative impact they can have on the economy, outweighing the intended purpose of the boycotts. While consumers have the right to choose where they spend their money, it is crucial to consider the broader implications of these actions on businesses, workers, and the economy as a whole. Finding a balance between supporting causes and maintaining economic stability is essential for sustainable growth and prosperity.
