American brands are taking a beating in several Muslim nations as pro-Palestinian boycotts are forcing store closures.
KFC Malaysia has temporarily closed an estimated 100 stores, according to Reuters.
Although QSR Brands, which operates the KFC franchise in Malaysia, said the closings were “in response to challenging economic conditions,” local media are reporting the closings are due to boycotts from Palestinian supporters who believe KFC has ties to Israel.
According to the South China Morning Post, boycotts in the majority-Muslim nation have been going on for months, targeting brands with perceived connections with Israel.
QSR has tried to fight back by saying the losers in the boycott are Malaysian Muslims.
“Contributing positively to the Malaysian community, preserving the brand love for KFC and protecting employees of the brand are all priority to the organization,” QSR said in a statement, adding about 85 percent of the 18,000 Malaysia-based staff are Muslims.
“We firmly believe our rakyat [countrymen] will acknowledge our Malaysian roots, our sincerity and our hard work in contributing to the Malaysian ecosystem,” the statement said.
The issue is wider than Malaysia.
Time reported KFC had to close Algeria’s first KFC restaurant days after it opened due to pro-Palestinian demonstrations.
Do you stand with Israel?
McDonald’s has also faced pressure.
“The most pronounced impact that we’re seeing is in the Middle East and in Muslim countries like Indonesia and Malaysia,” Chris Kempczinski, CEO of the McDonald’s Corporation, said.
International sales for McDonald’s rose .7 percent in the final quarter of 2023, as opposed to 16.5 percent in the same period in 2022.
Although media reports have said McDonald’s in Israel gave free food to Israeli soldiers after the Oct. 7 Hamas attack, McDonald’s Corp. said it “is not funding or supporting any governments involved in this conflict” and that “any actions from our local Developmental Licensee business partners were made independently without McDonald’s consent or approval.”
Luqa AbuFarah, the North America Coordinator of the BDS National Committee, said that does not matter.
“The actions of a McDonald’s franchisee cannot be isolated from the company’s worldwide operations,” she said, adding that it “is responsible for ensuring that its franchisee is not involved in conduct that damages McDonald’s reputation, including any association of the brand with grave human rights violations.”
Starbucks has run into slow sales in Indonesia and Malaysia due to boycotts from anti-Israel groups.
