• KFC and Pizza Hut, declared bankruptcy after Yum! Brands terminated its franchise agreements on January 8. This collapse led to the closure of 537 restaurants.
• The collapse coincides with a broader boycott of brands over ties to Israel.
İs Gıda, the former operator of KFC and Pizza Hut in Türkiye, has declared bankruptcy, citing debts amounting to $214 million (TL 7.7 billion). The bankruptcy follows Yum! Brands’ decision to terminate its franchise agreements with the company on January 8.
The collapse has resulted in the closure of 537 restaurants.
İs Gıda CEO İlkem Şahin also commented on the dire situation, revealing the extent of the financial collapse:
“Now that it is in the news, I can clearly say that the reality we face today is a debt of billions of Turkish liras, company immovables seized by banks and state institutions, including our factories, and all my savings that I have pledged as collateral,” Şahin stated earlier this week.
Yum! Brands justified its decision by citing İs Gıda’s non-compliance with franchise agreements. Chris Turner, Yum! Brands’ chief financial and franchising officer, explained that the company had worked with İs Gıda for months in an attempt to provide assistance and address key issues. However, the operator ultimately failed to meet the necessary standards.
The closures coincide with a broader regional boycott of brands over their ties to Israel, which has killed more than 47,000 people in Gaza since October 7, 2023.
Meanwhile, Yum! Brands has reported strong financial performance, posting a net profit of $1.49 billion for 2024, which boosted its stock by more than 8% on the New York Stock Exchange.
