U.S.-based restaurant operator Yum! Brands announced Wednesday that it has terminated its franchise agreements with Iş Gıda A.Ş., the owner and operator of all KFC and Pizza Hut restaurants in Türkiye, adding that it expects the restaurants to close "at least temporarily."
The termination affects 283 KFC and 254 Pizza Hut restaurants in Türkiye, Yum! Brands said in a statement.
Iş Gıda A.Ş. is a subsidiary of Iş Holding A.Ş.
The American firm further said it expects the restaurants to close at least temporarily, adding: "Yum! Brands appreciate the loyalty of its Turkish consumers, remains committed to the region, and are working to reopen as many of the restaurants as possible in the future."
"Yum! is separately taking legal action under the terminated franchise agreements," it also said.
The U.S. corporation, which also operates brands such as Taco Bell, said that the owner of Iş Holding had also served as Yum!’s master franchisee in Germany for KFC and Pizza Hut for the past two years. However, it said that in December 2024, Yum reacquired the master franchise rights to the German business and resumed management of that market, adding that the latest decision would not impact this market.
Yum! Brands is forecasting approximately $60 million (TL 2.12 billion) in pretax expenses in the fourth quarter related to its operations in Türkiye.
