KFC Indonesia has reported a sharp increase in financial losses due to ongoing pro-Palestinian boycotts. The company’s latest report reveals a net loss of 348.83 billion rupiah (SG$4 million) for the first quarter of 2024. This represents a dramatic rise from the 5.56 billion rupiah loss (SG$460K) recorded during the same period last year.
According to the South China Morning Post (SCMP), this escalation in losses is attributed to the boycotts. A KFC manager in Medan, who requested anonymity, noted a significant drop in business since November, following the outbreak of the Gaza conflict in October. The boycotts initially targeted McDonald’s Israel, which had distributed free burgers to Israeli military personnel. The movement soon spread to other brands perceived as supporting Israel, such as Starbucks and McDonald’s.
As a result, Indonesian consumers have shifted their preference to alternative fried chicken options, such as the Singaporean chain 4Fingers and the local Richeese Factory.
In response to the situation, KFC Indonesia commissioner Archmad Baiguni stated in November that the company and its employees were deeply concerned about the humanitarian crisis in Gaza. KFC Indonesia made a 1.5-billion-rupiah (SG$124.5K) donation to the Indonesian Red Cross to support relief efforts in Palestine.
KFC’s challenges are not unique to Indonesia. Similar boycotts have impacted KFC and other brands in countries like Malaysia. In April, 108 KFC outlets in Malaysia were temporarily closed due to the pro-Palestine boycott. Kelantan was particularly affected, with nearly 80% of its KFC branches shut down. Johor, Selangor, Kedah, and Shah Alam also experienced closures.
Despite the situation, Boycott Divestment Sanctions (BDS) Malaysia has clarified that KFC was never included in its boycott list. According to BDS Malaysia chairman Nazari Ismail, KFC has not been targeted by the organization, unlike McDonald’s, which was boycotted due to its support for Israeli military actions. BDS Malaysia’s current boycott list includes McDonald’s, Domino’s Pizza, Pizza Hut, Burger King, and Wix.
KFC has not yet issued a statement regarding its status in Malaysia, as confirmed by A+M earlier in June.