Former KFC and Pizza Hut operator in Turkiye declares bankruptcy 

Is Gida, the former operator of KFC and Pizza Hut in Turkiye, has filed for bankruptcy, citing debts of $214 million (TL 7.7 billion). The move follows Yum! Brands’ termination of its franchise agreements with the company on 8 January.

The collapse has led to the closure of 537 restaurants and the loss of around 7,000 jobs. Daily Sabah reports that many employees were dismissed without receiving their salaries, sparking protests in Istanbul, Ankara, and Izmir.

Abdurrahim Seven, a manager at one of the country’s 283 KFC restaurants, urged Yum! Brands CEO David Gibbs and incoming KFC CEO Scott Mezvinsky to address the issue in a LinkedIn post on Tuesday.

“We, thousands of employees, are still hoping for positive news from Yum! Brands. Regarding the Türkiye operation, we are not telling you to come or go—we just want a clear statement so we can plan our lives accordingly,” Seven wrote.

KFC ve Pizza Hut işçilerinin yanındayız!

KFC ve Pizza Hut’ın Türkiye’den çekilmesi sonrası binlerce işçi, tazminatlarını ve maaşlarını talep ederek ülke genelinde protesto başlattı.#Kaldırbaşını#İstehakkını #kfc #eylem pic.twitter.com/Ac4A79svoq

— Gençlik Meclisleri (@Gencmeclisleri) February 8, 2025

“Now that it is in the news, I can clearly say that the reality we face today is a debt of billions of Turkish liras, company immovables seized by banks and state institutions, including our factories, and all my savings that I have pledged as collateral,” said Is Gida CEO Ilkem Sahin in a statement earlier in the week.

KFC ve Pizza Hut’ta çalışırken hakları gasp edilen işçiler, İş Plaza önünde toplanmaya devam ediyor.

İşçilerin hakkarını verin.#KFC #PizzaHut pic.twitter.com/uRfKlUdtBi

— TEHİS (@tehisendikasi) February 6, 2025

Yum! Brands cited non-compliance with franchise agreements as the reason for cutting ties. Prior to termination, Yum! Brands engaged with Is Gida over several months “to provide assistance and resolve key issues,” but Is Gida was ultimately unable to maintain compliance with company standards, said Chris Turner, the company’s chief financial and franchising officer.

The closures come amid a broader boycott of Western brands in Turkiye and the wider region over their ties to Israel, which has killed more than 47,000 people in Gaza since 7 October, 2023.

Meanwhile, Yum! Brands reported strong financial results, posting a net profit of $1.49 billion for 2024, driving its stock up over 8 per cent on the New York Stock Exchange.

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