KFC Malaysia closed 108 outlets as a Gaza boycott emptied its dining rooms

KFC Malaysia, operated by QSR Brands, runs about 600 outlets nationwide. From late 2023, a consumer boycott campaign linked to the Israel-Gaza war targeted US-linked brands perceived as supporting Israel. By April 2024, KFC had temporarily closed 108 outlets — roughly one in five — with the hardest-hit region being Kelantan, where nearly 80% of its outlets shut down. QSR Brands cited 'challenging economic conditions' and emphasized its commitment to its 18,000 employees, of whom about 85% are Muslim.

The boycott did not originate from the official BDS movement — KFC was not on the BDS boycott list. But many Malaysian consumers saw any American fast-food brand as associated with Israel. The closures were not permanent, but the boycott persisted well into 2024. McDonald's Malaysia reported a 38.2% sales slump in Q4 2023, and QSR Brands took a significant financial toll as the campaign continued.