KFC and Pizza Hut are returning to Turkey

Yum! Brands, one of the world's leading fast-food chains, terminated the contract of İş Gıda, which operated its franchise services in Turkey, with a decision made in the first days of January.

While the company's failure to meet the standards set in Turkey was cited as the reason for the termination decision, this move led İş Gıda to file for concordat, and 537 KFC and Pizza Hut branches in Turkey shut their doors.

FAST FOOD GIANT IS RETURNING TO THE TURKISH MARKET

According to a report by Necla Dalan from Patronlar Dünyası, KFC and Pizza Hut, whose branches have been kept closed for approximately 4 months, have reached an agreement to return to the Turkish market.

The American giant Yum! Brands, which plans to continue its operations in Turkey on its own, has reached an agreement with Value Solution Partners, a company providing real estate and investment management services.

Value Solution Partners has begun meeting with shopping mall investors to continue agreements under existing lease terms. Although agreements have been reached for very few branches, most investors are reluctant to agree. It is also rumored in the corridors that investors who are unwilling to agree primarily want existing debts to be paid and rents to be increased.

NEGOTIATIONS WITH INVESTORS CONTINUE

Before the stores closed, KFC and Pizza Hut branches were operating in 90 percent of shopping malls in Turkey. While it is being discussed in industry circles that İş Gıda has been unable to pay rent for 3-4 months, it has been claimed that the closed branches mean a monthly loss of 80 million TL for shopping mall investors, based on an average rent of 150 thousand TL per store.

MCDONALD'S AND TAB Gıda DENIED THE CLAIMS

While McDonald's officials stated that they have no plans to acquire KFC and Pizza Hut, the issue was brought up on the TAB Gıda side during the general assembly meeting held on Friday.

According to the notification regarding the general assembly proceedings made to the Public Disclosure Platform (KAP), Mustafa Can Kaya asked electronically at the general assembly, "Is there any work regarding the 537 branches closed due to the Yum! Brands franchise termination creating market share and similar opportunities for KFC, Pizza Hut, etc., for TAB Gıda? If so, could you provide information?"

The response was, "Regarding the İş Holding question, we would like to state that we do not have a strategy to directly acquire the brands."

Despite such a response given at the general assembly, according to reports from shopping mall corridors, Popeyes, the fried chicken chain under TAB Gıda, is closely interested in the closed branches of KFC.