Yum! Brands, the parent company of KFC and Pizza Hut, announced on Wednesday that it has terminated its franchise agreements with Turkish operator IS Gida. The company cited IS Gida’s alleged failure to meet Yum! Brands’ operational standards as the reason for the decision.
Chris Turner, Yum! Brands’ chief financial and franchising officer, explained that the company had worked with IS Gida for several months to address key issues before the termination. However, IS Gida was unable to comply with the required standards, Turner said.
The termination affects 283 KFC and 254 Pizza Hut locations in Turkey, which are expected to close, at least temporarily. Yum! Brands stated that it is working to reopen as many of the affected restaurants as possible.
In response, IS Gida denied the allegations, stating that its operations met quality standards and that the restaurants continue to operate without interruption. The company, which introduced KFC in 2020 and Pizza Hut in 2022, claimed to have grown its total number of restaurants by 300% in the first three years, bringing the total to 537.
IS Gida also noted that it employs around 7,000 people and was recognized with a growth award by Yum! Brands in 2023 for its performance. It further emphasized that its restaurants are regularly audited by independent organizations approved by Yum! Brands to ensure compliance with global standards.
The company added that it believes Yum! Brands made a hasty decision, influenced by financial concerns, and that the process surrounding the termination is ongoing.
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