KFC and Pizza Hut’s operator in Turkey, İş Gıda A.Ş., has declared bankruptcy, leading to the closure of 537 branches and affecting 7,000 employees.
The crisis began when Yum! Brands terminated its franchise agreement in January 2025, citing failure to meet operational standards. Following this, İş Gıda burdened with debts of 7.7 billion Turkish liras, filed for bankruptcy in February. The sudden closures sparked protests over unpaid wages, with employees demanding their dues. Reports suggest KFC’s sales had declined by 40%, while rapid expansion and financial mismanagement worsened the company’s struggles. Yum! Brands plan to find new franchise partners to reopen restaurants, but the timeline remains uncertain.
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