KFC, Pizza Hut restaurants in Türkiye set to close as franchise agreement ends

Owner of KFC and Pizza Hut brands, U.S.-based fast-food corporation Yum! Brands announced on Wednesday that it has terminated its franchise agreement with Turkish IS Gida, resulting in the closure of 283 KFC and 254 Pizza Hut restaurants, at least temporarily.

In a press release published on the company’s website, Yum! Brands noted that IS Gida failed to meet the quality standards outlined in the franchise agreement.

“Prior to termination, Yum! Brands engaged with IS Gida over several months to provide assistance and resolve key issues, but IS Gida was ultimately unable to maintain compliance with our standards and adhere to fundamental provisions of our franchise agreements,” said Chris Turner, Chief Financial & Franchising Officer of Yum! Brands.

283 KFC, 254 Pizza Hut restaurants to be closed

The company emphasized that the decision would affect 283 KFC and 254 Pizza Hut restaurants in Türkiye, anticipating at least a temporary closure. “Yum! is separately taking legal action pursuant to the terminated franchise agreements,” the statement noted, addressing the possibility of challenges in closing the restaurants.

The company asserted that current revenues from franchises in Türkiye are significantly below the global average due to quality issues. However, it remarked that the restaurant closures in Türkiye would have no impact on its 2025 profits.

“Yum! and its brands look forward to again serving our customers in the Türkiye market in the future,” Turner added.