The Pizza Hut and KFC outlets in Hulhumalé, launched in April last year, have ceased operations, marking a notable development in the Maldives’ fast-food industry.
While official statements on the closures remain pending, reports suggest sluggish business performance as a key factor behind the decision. The outlets were situated above Rashu Market in Hulhumalé, a location that saw limited foot traffic.
Additionally, both franchises faced public backlash due to their inclusion in boycott campaigns linked to the Palestine-Israel conflict. Protests and acts of vandalism targeted these establishments, reflecting the strong sentiments of local communities. Although KFC clarified it operates as a non-political entity, the controversies may have influenced consumer behavior.
Similar challenges have emerged for KFC in other Muslim-majority countries. In Indonesia, the franchise reportedly incurred losses of USD 35 million in the first quarter of this year, leading to the closure of 47 outlets. In Malaysia, several KFC outlets were temporarily shut down due to declining sales.
Both Pizza Hut and KFC were introduced to the Maldives in 2018 by Gemma Island Food, a joint venture between the Maldives’ Island Food and India’s Gemma Pizza Craft Overseas. The closures in Hulhumalé underline the broader struggles these global brands face in adapting to unique local and regional dynamics.
