Amid calls to boycott brands with alleged ties to Israel, numerous KFC outlets in Malaysia have shut down. The boycott gained traction following Israel’s attacks on Gaza, with many Malaysians refusing to support Western companies perceived as having connections to Tel Aviv. KFC, among others, has suffered financial losses as a result of the boycott, leading to the closure of over 100 outlets since October, according to local media estimates.
QSR Brands Holdings, the operator of KFC in Malaysia, acknowledged the closures due to “increasing business costs” amid “challenging economic conditions.” While the company did not specify the number of closures or attribute them directly to the boycott, affected staff were offered opportunities to relocate to busier stores.
The boycott has affected various international brands in Malaysia, with Starbucks and McDonald’s reporting significant revenue drops. Despite not being originally targeted, these companies experienced losses as part of the broader boycott movement. The boycott, led by the local chapter of the Boycott, Divestment, Sanctions movement, has impacted companies perceived to be associated with Israel, including Burger King, Puma, Airbnb, and Pizza Hut.
While KFC was not initially on the boycott list, its American origins have led many Malaysians to associate it with Israel. Some social media users expressed gratitude for the closures, citing KFC’s parent company, Yum Brands, allegedly investing in Israeli startups. Others criticized KFC’s quality as a reason for avoiding the brand.
The boycott of KFC was seen as inevitable by some analysts, given its American roots and the sentiment against companies perceived as American-based. Malaysia, with a predominantly Muslim population and a long-standing support for the Palestinian cause, has no diplomatic relations with Israel and prohibits Israeli nationals from entering its territory. In December, Malaysia further enforced its stance by banning Israeli and Israel-bound ships from docking at its ports.
