KFC closures to manage increasing business costs - management

The management of KFC Malaysia has confirmed a downsizing of its operations here with measures taken to temporarily close selected outlets.

QSR Brands in a statement said the closures were a part of efforts to manage increasing business costs and focus on high engagement trade.

“Employees from the affected stores were offered the opportunity to relocate to operating stores as part of a tactical strategy to optimise resources in trade zones with higher customer engagement," said the company.

The statement, however, did not disclose any figures beyond QSR Brand’s contributions to the economy through job security for 18,000 team members in Malaysia, of which, approximately 85 percent are Muslims.

“QSR Brands continue to be among the largest taxpayers in Malaysia and take pride in being able to give back to the community through KFC Add Hope and the Wakalah Zakat Fund.

“We firmly believe our rakyat will acknowledge our Malaysian roots, our sincerity and our hard work in contributing to the Malaysian Ecosystem,” said the company.

Earlier today, the Singapore Straits Times quoted Nanyang Siang Pau’s report that claimed 108 KFC outlets have been temporarily shuttered, based on Google Map data.

The Straits Times also quoted an anonymous source from QSR who attributed the closures to the impact of a public boycott, and that it could be viewed as an opportunity to cease some of the KFC store operations that have weighed on its balance sheet.

There are more than 600 KFC restaurants in Malaysia operated by QSR, which is now owned by the Johor state government’s Johor Corporation.

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