KFC has officially closed all 537 of its restaurants across Türkiye, following the bankruptcy of its local franchise operator, Iş Gıda. The shutdown marks one of the most significant business exits in the country in recent years, affecting over 7,000 employees and dealing a heavy blow to Türkiye’s struggling economy.
The crisis began when Yum! Brands, the U.S.-based owner of KFC and Pizza Hut, terminated its franchise agreements with Iş Gıda in early January. The company stated that Iş Gıda failed to meet key standards outlined in their long-standing partnership.
Yum! Brands’ Chief Financial and Franchising Officer, Chris Turner, explained that they had worked with Iş Gıda for months to resolve issues but ultimately had to part ways due to continued non-compliance.
Soon after the termination, Iş Gıda filed for bankruptcy protection with the Turkish courts, revealing a staggering debt of 7.7 billion Turkish liras (approximately $214 million).
The company’s CEO, Ilkem Şahin, expressed deep sorrow over the collapse, stating that even his personal savings had been pledged to keep the company afloat. “We are facing billions of lira in debt, company properties seized by banks and government institutions, including our factories,” said Şahin in an emotional statement.
The Turkish court has given Iş Gıda a three-month temporary reprieve to restructure its debts. During this period, the company is expected to negotiate with creditors and find a way to protect its remaining assets and responsibilities towards employees. However, the future of KFC and Pizza Hut in Türkiye remains unclear, as Yum! Brands has yet to announce new partners.
According to company statements, employee salaries were paid up until December 2024, but January salaries remain unpaid. The delay, combined with sudden job loss, has sparked large-scale protests outside Iş Gıda’s headquarters in Istanbul and other major cities. Workers are demanding immediate clarity from Yum! Brands about their employment status and unpaid wages.
KFC managers and workers have taken to social media, particularly LinkedIn, to voice their concerns. Abdurrahim Seven, a KFC manager, urged Yum! Brands’ CEO David Gibbs and incoming KFC CEO Scott Mezvinsky to break their silence.
“We’re not asking you to come or go,” he wrote. “We just want a clear statement so we can plan our lives.”
Another regional manager, Serkan Yilmaz, echoed the plea, reminding the company of past promises during international visits. “You told us we are family. Please make us feel like we still are.”
The bankruptcy also comes in the wake of a growing boycott movement against Western brands in Türkiye, particularly those with ties to U.S. corporations. KFC and Pizza Hut were among the brands targeted, worsening their financial outlook. People believe the boycott movement, combined with inflation and currency devaluation, made it nearly impossible for Iş Gıda to recover.
The closure of 537 restaurants (283 KFCs and 254 Pizza Huts) is expected to have ripple effects on the local economy, especially in smaller cities where these outlets provided regular employment.
The collapse also raises concerns over foreign investor confidence in Türkiye’s volatile market. Economic experts warn that if more companies follow suit, Türkiye could face rising unemployment and reduced investment in the food and hospitality sector.
Yum! Brands has not yet revealed any plans to re-enter the Turkish market with a new partner, but industry insiders expect that a new franchise agreement could take months to finalize. Meanwhile, competitors such as McDonald’s and Burger King may benefit from KFC’s absence.
Thousands of affected workers are left waiting—for answers, for their final salaries, and for a chance to regain their livelihoods.
