KUALA LUMPUR (Reuters) – KFC Malaysia has temporarily closed stores in the country, citing difficult economic conditions, after local media reported the closures were due to a boycott over the fast food chain’s alleged ties to Israel.
Malaysia, a predominantly Muslim country, is a staunch supporter of the Palestinians, and some Western fast food brands in the country, as in some other Muslim countries, have been the target of boycott campaigns due to Israel’s military offensive in the Gaza Strip.
QSR Brands (M) Holdings Bhd, which operates KFC and Pizza Hut franchises in Malaysia, said it had temporarily closed KFC stores “in response to challenging economic conditions”.
“QSR Brands and KFC Malaysia have taken proactive measures to temporarily close outlets as a means of managing rising business costs and focusing on high-traffic retail areas,” the company said in a statement late Monday. The statement did not mention media reports.
It did not say how many stores were affected, but local media reported that more than 100 outlets were temporarily closed.
Employees at the affected stores were offered the opportunity to relocate to retail locations in areas with higher levels of customer engagement, QSR Brands said.