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Kentucky Fried Chicken (KFC) has shut down around 100 of its franchises in Malaysia due to significant business losses linked to boycotts related to the Gaza conflict. The company, part of QSR Brands, temporarily closed 108 outlets, mainly in Kelantan state, where economic conditions have been challenging. This move has affected approximately 18,000 employees, with the company offering relocation opportunities to busier stores.

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The boycotts are part of a broader movement targeting American food franchises perceived to support Israel. KFC and other chains like Starbucks and Berjaya Food have faced declining sales and backlash due to these perceptions. Starbucks, in particular, reported significant losses following a lawsuit related to a pro-Palestine social media post.

In response to the boycotts, McDonald’s sold its Israeli franchise, and its Malaysian franchisee sued BDS Malaysia for damages. Berjaya Food, meanwhile, has highlighted the impact on its Muslim employees and appealed for an end to the boycott.

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