Yum! Brands cited “failure to meet operational and quality standards” as the reason for severing ties.
Palestine Cause: All 537 KFC Outlets Close in Turkey after Bankruptcy. Yum! Brands, the U.S.-based parent company of KFC and Pizza Hut, has ended its franchise agreement with Turkish operator İş Gıda, resulting in the closure of 537 restaurant locations across Turkey. The move has led İş Gıda into bankruptcy, with debts exceeding 7.7 billion Turkish lira ($214 million).
Yum! Brands cited “failure to meet operational and quality standards” as the reason for severing ties. However, the timing of the closures has raised speculation about the impact of Turkey’s growing boycott of Israeli-linked businesses, particularly in response to the ongoing Gaza conflict.
Recent reports indicate a 40% decline in KFC’s sales in Turkey, exacerbating İş Gıda’s financial difficulties. The Turkish operator, which had aggressively expanded its presence since acquiring franchise rights in 2020, has seen rapid growth but was also heavily reliant on debt and a risky financial strategy. İş Gıda had more than doubled KFC’s locations from 125 to 283 and expanded Pizza Hut’s outlets from 45 to 254, earning the “Best Franchise Partner of 2023” award. However, rising interest rates and liquidity shortages have driven the company to bankruptcy.
In addition to its fast-food operations, İş Gıda ventured into snack production, automotive parts, and media, but these investments only added to its financial burden. A Turkish court has granted the company three months to restructure.
The closure of İş Gıda’s restaurants is seen as a major consequence of the boycott against Israeli-linked businesses, which has been intensifying across Turkey due to the Gaza conflict. Turkish consumers have increasingly rejected multinational brands associated with Israel, prompting companies to reassess their operations in the country.
The boycott has been supported by both the Turkish government and the private sector, with Turkish Railways and Turkish Airlines removing Israeli-linked products, and numerous municipalities banning Israeli goods. On May 2, 2024, the Turkish Ministry of Trade took the strongest action yet, halting all trade with Israel until unrestricted humanitarian aid reaches Gaza.
