KFC Malaysia has temporarily shut down about 108 restaurants nationwide, about 20 per cent of its network in the country.

A local Chinese-language daily first broke the news, citing months of pro-Palestine boycotts of US-linked businesses triggered by the ongoing war in Gaza. 

The report noted that Kelantan is the hardest hit with up to 21 outlets suspended, followed by Johor with 15 restaurants.

QSR Brands, which operates the KFC franchise in Malaysia, confirmed the store closures in a statement, stating that the move was in response to “challenging economic conditions”.

The company, however, did not disclose the exact number of affected outlets.

The firm added it aims to manage rising business costs and prioritise high-engagement trade zones. Employees of the affected restaurants will have the opportunity to relocate to operating stores as part of a tactical strategy to optimise resources.

“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 per cent are Muslims,” QSR said.