Fast food giant with 283 branches in Turkey is closing its locations!

The ongoing dispute regarding the franchise rights of KFC and Pizza Hut, two giants of the fast food sector, in Turkey has reached a new turning point.

CLOSURES HAVE BEGUN AT KFC RESTAURANTS

According to a report by Hürriyet, a closure process has begun at KFC restaurants, which have 283 branches across Turkey, particularly affecting street-level stores. While many street-level stores have ceased operations due to depleted stocks, branches in shopping malls (AVM) continue to serve customers. However, it is noted that the mall restaurants also face the risk of closure depending on a court decision.

Furthermore, KFC's online ordering services have also been suspended. A shopping mall official stated that mall branches could also close in accordance with an interim injunction expected from the court.

WHAT IS AT THE ROOT OF THE DISPUTE?

The world-famous Yum! Brands unilaterally terminated its agreement with İş Gıda, which holds the operating rights for the KFC and Pizza Hut brands in Turkey. However, İş Gıda did not accept this termination decision and initiated legal proceedings. It is anticipated that the mall branches will be able to continue their operations until the court's decision is finalized.

The reason cited for the termination was İş Gıda's failure to meet established quality and operational standards. In its statement, Yum! Brands noted, "Prior to the termination, we spent months working in cooperation with İş Holding to resolve the issues. However, as compliance with the standards could not be achieved, the termination became inevitable."

News Source: 12punto