Yum! Brands, owner of KFC and Pizza Hut, has ended its franchise agreement with İş Gıda, leading to the immediate closure of 537 restaurants in Turkey and the Turkish operator’s bankruptcy. İş Gıda reported debts exceeding $214 million.
Yum! Brands cited “failure to meet operational and quality standards” for the termination. However, reports suggest a Gaza-related boycott may have contributed, with KFC sales in Turkey reportedly dropping 40%.
İş Gıda, which aggressively expanded both KFC and Pizza Hut locations after securing franchise rights in 2020, relied heavily on debt. Despite being named Yum! Brands’ “Best Franchise Partner of 2023,” rising interest rates and liquidity problems ultimately led to İş Gıda’s financial collapse.
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