Image credit: QSR Brands

Halal Industry

Malaysia: KFC operator closes outlets citing challenging conditions 

QSR Brands, operator of fast food chains KFC and Pizza Hut across Malaysia, has temporarily shut down outlets in the country, citing challenging economic conditions. 

"QSR Brands and KFC Malaysia has taken proactive measures to temporarily close outlets as means to manage increasing business costs and focus on high engagement trade zones," the company said in a statement on Monday. 

The decision was taken in response to "challenging economic conditions". 

The company said employees from affected stores were offered the opportunity to relocate to busier operating stores in an attempt to re-optimise resources. It did not specify the number of affected stores. 

However, local media reports that cite a Chinese daily, suggest more than 100 shops have been closed.  

The closure has been widely linked to customer disengagement over the Israel-Gaza conflict. 

QSR Brands produces some two million chickens per month, but also supplements meat demand with local suppliers and imports, according to S&P Global Commodity Insights, citing a Malaysian poultry integrator. 

QSR Brands operates 850 KFC restaurants in Malaysia, Singapore, Brunei, and Cambodia. It also runs more than 500 Pizza Hut outlets across Malaysia and Singapore.