Turkish fast-food operator İş Gıda A.Ş. has declared bankruptcy, leading to the closure of all 537 KFC and Pizza Hut outlets across the country. The company, which managed the franchises for Yum! Brands in Turkey, cited debts amounting to $214 million (7.7 billion TL) and financial mismanagement as key reasons for the collapse.
Reports suggest that İş Gıda’s aggressive expansion strategy, coupled with economic challenges, left it vulnerable to financial distress. The company had rapidly grown from 138 KFC and 58 Pizza Hut locations in 2020 to 537 outlets by 2024, relying heavily on debt. Rising interest rates and liquidity issues further worsened its position.
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Adding to the crisis, consumer boycotts linked to the Gaza conflict reportedly led to a 40% drop in KFC sales in Turkey. The public backlash against Western brands perceived to support Israel played a significant role in declining revenues.
The bankruptcy has left 7,000 employees jobless, sparking protests over unpaid wages. Many workers have accused İş Gıda of financial mismanagement, including allegations of diverting funds to unrelated ventures. Yum! Brands has announced plans to reopen outlets with new franchise partners, but restoring consumer trust may take time.
