KFC Malaysia closed 108 stores as a Gaza boycott gutted its business

In April 2024, QSR Brands — the operator of KFC in Malaysia and a subsidiary of Johor Corporation — temporarily closed 108 of its approximately 600 KFC outlets across the country. The closures followed six months of a pro-Palestine consumer boycott that targeted US-linked brands after the outbreak of the Gaza war in October 2023. The 108 shuttered stores represented about 20% of KFC's Malaysian footprint.

The boycott hit unevenly. Kelantan, a conservative northern state, was the worst affected, with nearly 80% of its KFC outlets — up to 21 stores — forced to close. Other heavily affected states included Johor (15 stores), Selangor and Kedah (11 each), and Terengganu and Pahang (10 each). By contrast, only three stores closed in Kuala Lumpur and one in Sabah. QSR Brands said affected employees, out of a workforce of 18,000 (about 85% Muslim), were offered relocation to busier outlets.

KFC was not on the official BDS (Boycott, Divestment, Sanctions) list, but many Malaysian consumers associated any American fast-food chain with Israel. QSR Brands responded by adjusting its branding to emphasize local ownership by Johor Corporation, a state government entity. The company cited 'challenging economic conditions' and 'increasing business costs' as the reasons for the closures. The same boycott wave also hit McDonald's and Starbucks operations in Malaysia.