The American corporation Yum! Brands, which owns the KFC and Pizza Hut chains, has announced the termination of its franchise agreement with the Turkish company IS Gida. This was reported by Euronews (in Turkish).
As a result, 283 KFC restaurants and 254 Pizza Hut restaurants in Turkey will be temporarily closed. According to Yum! Brands representatives, the reason for the termination was "issues with product quality, which led to revenues falling below the global average."
The company emphasized that it is making efforts to reopen the restaurants in Turkey under the management of a new partner as soon as possible.
“Prior to the termination, Yum! Brands had been working with IS Gida for several months, providing assistance and trying to resolve key issues; however, the company was unable to maintain our standards and comply with the essential terms of the franchise agreements,” said Chris Turner, CFO and head of franchising at Yum! Brands.
The closure of the restaurants will be temporary, as Yum! Brands plans to re-enter the Turkish market in the future. The company also highlighted that the current decision will not impact its profits in 2025. “Yum! and its brands look forward to the opportunity to serve our customers in the Turkish market again,” Turner added.
The company also confirmed that it has already begun legal procedures related to the termination of the franchise agreement with IS Gida. The statement specifically noted that the Pizza Hut and KFC branches in Germany, also managed by IS Holding, will not be affected by this decision.
Earlier, Spot reported on which franchises are the most profitable in Uzbekistan in 2024.