KFC Malaysia Closes 108 Stores Amid Challenging Economic Climate, Staff to be Transferred

The Paper Break Apr 30, 2024
KFC Malaysia Closes 108 Stores Amid Challenging Economic Climate, Staff to be Transferred

One event led to another, resulting in QSR (M) Brands Holdings Berhad, the parent company of KFC's fast-food franchise in Malaysia, closing over 100 outlets nationwide, purportedly due to both a boycott movement and inflation.

As of April 27, a total of 108 KFC outlets across Malaysia have ceased operations, with Kelantan being the most severely affected, followed by Johor (with 21 and 15 closures respectively).

According to information on QSR's website, the company oversees 850 KFC outlets across Malaysia, Singapore, Brunei, and Cambodia, with Malaysia alone boasting over 600 KFC restaurants. The issue was initially reported by a local Chinese newspaper, Nanyang Siang Pau, though the article has since been removed.

Was the closure of multiple KFC outlets by QSR due to the boycott movement?

"Affected employees will be relocated."

Just yesterday evening (April 29), QSR released an official statement asserting that these closures are temporary. The company refrained from attributing the closures to the boycott, instead citing challenging economic conditions as the cause.

"This is a strategy to address rising business expenses and to concentrate on areas with high customer engagement," QSR stated in its announcement.

Regarding employees at the impacted outlets, they are not being left without recourse. According to the statement, affected employees will be transferred to outlets with higher customer traffic.

"Employees from affected outlets were offered the opportunity to relocate to busier operating stores as part of the company’s efforts to optimize operations."

QSR also noted that 85% of KFC Malaysia's workforce is Muslim, and the brand, which has been serving Malaysia for over 50 years, has provided job security for 18,000 Malaysians over the years.

Apart from KFC, the food-technology company also oversees Pizza Hut, Ayamas, and Life, as detailed on its website.

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