KFC has closed all 537 of its outlets in Türkiye after its local franchisee, Iş Gıda, went bankrupt—one of the most major business exits in the country in recent times. The shutdown impacts over 7,000 workers and further strains an already fragile economy.
The crisis was triggered in early January when Yum! Brands, the U.S.-based parent company of KFC and Pizza Hut, ended its franchise agreements with Iş Gıda, citing persistent failures to meet operational standards despite months of attempted resolution.
Following the termination, Iş Gıda filed for bankruptcy protection, disclosing debts of 7.7 billion Turkish liras (about $214 million). CEO Ilkem Şahin expressed regret over the downfall, revealing that even his personal savings were committed in an effort to salvage the company. He said the firm is now battling seized properties and factory takeovers by banks and government agencies.
The Turkish judiciary has granted Iş Gıda a three-month grace period to reorganise its finances and negotiate with creditors. However, Yum! Brands has yet to announce any new franchise partner, leaving the fate of KFC and Pizza Hut in Türkiye uncertain.
According to the company, employee wages were paid through December 2024, but January salaries remain pending. The unpaid dues and abrupt job losses have sparked protests across Istanbul and other cities, with workers demanding answers from Yum! Brands about their employment status.
Frustrated staff have taken to social media platforms like LinkedIn to voice their concerns. KFC manager Abdurrahim Seven appealed directly to Yum! Brands’ leadership for clarity, stating, “We just want a clear statement so we can plan our lives.” Another regional head, Serkan Yilmaz, reminded the company of their earlier commitments, saying, “You told us we are family. Please make us feel like we still are.”
The shutdown comes amid an intensifying boycott of Western brands in Türkiye—especially US-linked companies—compounded by high inflation and a weak currency, which further worsened Iş Gıda’s position.
With 283 KFC and 254 Pizza Hut outlets now closed, the ripple effect is expected to hit local economies hard, particularly in smaller towns where these chains were key employers.
The situation has also rattled investor confidence, raising concerns about Türkiye’s appeal as a stable destination for foreign businesses. Analysts caution that without swift recovery plans, more closures may follow in the hospitality sector.
Yum! Brands has yet to confirm when or how it might return to the Turkish market, while rivals like McDonald’s and Burger King may gain from KFC’s absence. For now, thousands of workers remain in limbo—awaiting their dues and a chance to rebuild their futures.
