Pro-Palestinian boycotts in Indonesia bite hard into KFC’s bottomline

The operator of fast food giant Kentucky Fried Chicken (KFC) in Indonesia has reported steeper losses as pro-Palestinian boycotts continue to hammer businesses in the country perceived to be associated with Israel or its army.

KFC Indonesia, owned by Fast Food Indonesia, disclosed in a report last week that it recorded a net loss of some 348.83 billion rupiah (US$21.5 million) in the first quarter of this year, a jump of more than 60 times from a loss of 5.56 billion rupiah (US$343,825) in the same period last year.

In the city of Medan, the provincial capital of North Sumatra, a KFC manager told This Week in Asia that he was “unsurprised by the news but surprised the losses were not higher”.

The manager, speaking on condition of anonymity, said he had noticed a sharp downturn in business since November last year following the outbreak of the war in Gaza in October.

“It is the result of the boycotts because of Palestine. The restaurant is very quiet from Monday to Thursday.”

The boycotts across Indonesia first took hold at the start of the war when McDonald’s Israel was reported on social media to have handed out free burgers to members of the Israeli military.

In the months that followed, the boycotts also targeted other brands seen as “pro-Israel” including Starbucks and McDonald’s.

In a move to entice more customers, the KFC manager in Medan said that the fast food chain’s Indonesian franchisee has started running more promotions and discounts.

“At the weekend, we still have some customers, but usually they only come if we have a promotion running,” he said.

One former KFC customer who is enticed by those promotions is Ade Andriany, a doctor based in Medan. She told This Week in Asia that she has refused to frequent the fast