KFC has reduced its operations in Malaysia, shuttering about 20 per cent or about 100 of its 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 operations of 108 outlets nationwide, with the KFC stores have had their status updated to show “temporarily closed”.
Sources say the firm sees the boycott as an opportunity to cease some of the KFC store operations that have weighed on its balance sheet.
QRS said in a statement on April 29 that “in response to challenging economic conditions”, it has taken proactive measures to temporarily close outlets in order to manage growing business costs and focus on the busier KFC stores.
“Employees from the affected stores were offered the opportunity to relocate to operating stores as part of a tactical strategy to optimise resources in trade zones with higher customer engagement,” the company said.
Checks on three outlets in Kuala Lumpur in Jalan Ipoh, Jalan Sultan and Taman Melawati found signs saying they were “temporarily closed”. Boxes were stacked up inside the restaurants. Workers at neighbouring stores said they were closed a week ago because of a lack of customers.
Boycotting products or companies can significantly impact their bottom line and reputation
While citizens feel empowered, some experts debate whether scattered spending changes can influence mega-corporations without regulation. Beyond dollars, the boycotts raise larger questions of how people can effectively express values through spending, and what unintended consequences may arise.
Some say economic consequences are secondary motivations, as the boycotts are foremost an expression of disgust at what the Israelis are doing in Gaza.
Malaysians and the Malaysian government have always supported the Palestinian cause all these years; it has been our consistent diplomatic priority public to weigh economic impact against moral solidarity as the actual revenue implications for targeted brands remain hazy.
With complex and blurry supply chains intersecting local economies, simplistic boycotts often miss their mark.
Backfires domestically
Any disruption in trade deals will cause the economy to lack growth. With Malaysia heavily reliant on exports, lost deals from boycotted partners could jeopardise growth. Domestically, lower sales for boycotted brands also mean less tax revenue.
When fewer people buy certain products, businesses get profits, and the government will collect fewer taxes, which causes a ripple effect.
Additionally, boycotts can directly hurt local workers as retail chains like KFC employs thousands of Malaysians are now facing hostility and harassment, besides losing their jobs. These ae fellow Malaysians.
