KUALA LUMPUR (April 29): Following reports that over 100 KFC outlets have been temporarily closed after about half a year of boycott movement, QSR Brands and KFC Malaysia said they suspended the operations of the outlets to manage increasing business costs amid challenging economic conditions, and to focus on high engagement trade zones. 

Employees from the affected stores have been offered the opportunity to relocate to operating stores to optimise resources in trade zones with higher customer engagement, they said in a joint statement confirming the outlet closures.

"Contributing positively to the Malaysian community, preserving the brand love for KFC and protecting employees of the brand are all priority to the organisation. Employees from affected outlets were offered the opportunity to relocate to busier operating stores as part of the company’s re-optimisation efforts. 

"As a company that has been serving Malaysians for over 50 years, the focus remains on providing quality products and services to customers, while contributing positively to the Malaysian economy through job security for 18,000 team members in Malaysia, of which, approximately 85% are Muslims.

"QSR Brands continue to be among the largest taxpayers in Malaysia and takes pride in being able to give back to the community through KFC Add Hope and the Wakalah Zakat Fund," the statement read.

They also expressed the firm belief that Malaysians will acknowledge the group's "Malaysian roots, our sincerity and our hard work in contributing to the Malaysian ecosystem".

Nanyang Siang Pau reported earlier on Monday that over 108 KFC outlets had been suspended nationwide by the evening of April 27, citing information from Google Maps, following the intense boycott movement that affected not just KFC but a few other global brands like Starbucks and McDonald's, due to their purported support or perceived link to Israel amid the ongoing conflict in Gaza.

Kelantan is the hardest hit with nearly 80% or up to 21 outlets stopping their operations temporarily, followed by 15 outlets in Johor, Nanyang Siang Pau said.

There are over 600 KFC outlets in Malaysia, according to KFC Malaysia's website.

QSR Brands, which owns and runs the KFC franchise in Malaysia, also operates the restaurants in Singapore, Brunei, and Cambodia, as well as more than 480 Pizza Hut outlets in Malaysia and Singapore.

QSR Brands' largest shareholder is Johor state investment arm Johor Corp (JCorp), with a 55.63% stake held via Massive Equity Sdn Bhd.

JCorp partnered with the Employees Provident Fund and private equity firm CVC Capital Partners Ltd to privatise QSR Brands and its subsidiary KFC Holdings (M) Bhd in February 2013 in a RM5.2 billion deal, for which the EPF and CVC formed Melati Asia Holdings Ltd with a 51% and 49% stake, respectively.

The balance 44.05% in QSR Brands is held by Melati Asia Holdings. 

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