QSR temporarily shuts some KFC outlets on rising business costs
Source: The Star
PETALING JAYA: QSR Brands (M) Holdings Bhd has taken proactive measures to temporarily close some of its KFC outlets as a means to manage increasing business costs and focus on high engagement trade zones.
It was reported yesterday that the group will be temporarily suspending more than 100 KFC outlets nationwide following months of boycotts.
According to a report by a local Chinese daily, QSR Brands, which owns and operates the KFC fast-food franchise in Malaysia, had temporarily suspended 108 outlets nationwide as of April 27.
The report noted that Kelantan was the hardest hit with nearly 80% or up to 21 outlets suspended, followed by Johor with 15 outlets.
In response to the report, QSR Brands emphasised that 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.
"Contributing positively to the Malaysian community, preserving the brand love for KFC and protecting employees of the brand are all priorities to the organisation.
"Employees from affected outlets were offered the opportunity to relocate to busier operating stores as part of the company's reoptimisation efforts," it said in a statement.
As a company that has been serving Malaysians for over 50 years, QSR Brands said its focus remains on providing quality products and services to customers while contributing positively to the Malaysian economy through job security for its 18,000 team members in Malaysia, of which, approximately 85% 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," it said.
QSR Brands, which owns and runs the KFC franchise in Malaysia, also operates the restaurants in Singapore, Brunei and Cambodia.
According to its website, QSR Brands operates 850 KFC restaurants in Malaysia, Singapore, Brunei and Cambodia, as well as more than 480 Pizza Hut concept restaurants and delivery services in Malaysia and Singapore.
It said Malaysia ranked as the country with one of the largest KFC and Pizza Hut stores.
Johor state investment arm Johor Corp is the largest shareholder of QSR Brands, which, together with its unit KFC Holdings (M) Bhd, were taken private in February 2013.
Apart from KFC, several other global brands such as Starbucks and McDonald's have been facing intense boycotts due to their purported support or perceived links to Israel amid the ongoing conflicts in Gaza.