Yum! Brands has announced the termination of its franchise agreement with İş Gida A.Ş., the operator of all KFC and Pizza Hut restaurants in Turkey. The decision affects 283 KFC and 254 Pizza Hut locations across the country.
Termination Due to Non-Compliance with Standards
According to Yum! Brands, the agreement was terminated due to İş Gida’s failure to meet the company’s operational and quality standards.
Chris Turner, Yum! Brands’ Chief Financial Officer, explained the decision:
“Having competent, well-capitalized, and committed 3C franchise partners is crucial for our business. While we strive to provide our partners with the tools and support needed for success, we also expect them to deliver high-quality experiences to our customers. Before the termination, Yum! Brands worked for several months to resolve the issues and offer support. However, İş Gida failed to maintain compliance with our standards and the fundamental terms of our franchise agreements,” he said.
Impact on the Turkish Market
The termination marks a significant development in Turkey’s fast-food sector, where KFC and Pizza Hut have been key players for years. Yum! Brands is expected to seek new franchise partners to maintain its presence in the Turkish market.
Source: Bloomberght/ Prepared by: İlayda Gök