The shutdown of 537 KFC and Pizza Hut restaurants in Türkiye due to İş Gıda’s bankruptcy protection process is set to hit shopping mall investors hard, with estimated rental losses exceeding ₺80 million per month. These closed restaurants cannot operate or be transferred to new tenants, creating major financial losses for mall owners.
Malls Losing ₺80 Million in Monthly Rent Due to İş Gıda’s Financial Crisis
The Association of Shopping Malls and Investors (AYD) President, Nuri Şapkacı, stated that due to the bankruptcy protection (konkordato) process, investors have no legal means to intervene.
“You cannot terminate the lease agreements or even enter the restaurants right now,” Şapkacı said. “Unfortunately, investors are completely helpless in this situation.”
İş Gıda, which previously operated KFC and Pizza Hut franchises, halted operations at all 537 locations, impacting 7,000 employees directly. Since 90% of malls in Türkiye housed at least one of these brands, the closures are causing significant financial strain.
Malls Stuck with Empty Restaurants and Unpaid Rent
According to industry sources, İş Gıda has not paid rent for 3-4 months, and the average monthly rent per closed store is around ₺150,000. This translates to a total estimated rental loss of over ₺80 million per month for mall investors.
Şapkacı noted that similar bankruptcy protection cases in the past have led to businesses remaining closed for up to two years, with investors still covering utility costs such as electricity and water.
“Right now, the entire process is locked for investors. The restaurants are non-operational and cannot be transferred to new tenants. When bankruptcy protection is granted, legal procedures must be followed. At this point, investors have no options,” he added.
The ongoing uncertainty surrounding İş Gıda’s bankruptcy raises concerns for both the food industry and shopping mall investors, highlighting the financial risks tied to large franchise operators in Türkiye.
Source: Patronlar Dünyası/ Prepared by: İlayda Gök