Yum! Brands announces termination of franchise agreements with Turkish operator IS Gida
Date
1/12/2025 2:24:41 AM
(MENAFN) 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 decision was attributed to IS Gida’s alleged failure to meet Yum! Brands’ operational and quality standards, as stated in a press release. According to Yum! Brands, the decision followed months of engagement to address critical issues, but IS Gida ultimately failed to comply with the required standards and adhere to key provisions in the franchise agreements.
Chris Turner, Yum! Brands’ chief financial and franchising officer, noted that the company had worked extensively with IS Gida in an effort to resolve the issues before resorting to termination. However, the failure to meet expectations led to the decision, which is expected to impact 283 KFC and 254 Pizza Hut restaurants in Türkiye. These locations are anticipated to close, at least temporarily, as Yum! Brands works on plans to reopen as many of the restaurants as possible under new arrangements.
In response, IS Gida disputed the claims, asserting that its operations meet all quality standards and remain uninterrupted. The company highlighted its significant expansion efforts, including increasing the total number of restaurants to 537 since incorporating the KFC brand in 2020 and Pizza Hut in 2022. IS Gida emphasized its 300 percent growth during the first three years of operation with Yum! Brands and its recognition with a growth award in 2023 for outstanding performance.
As of 2025, IS Gida provides employment for around 7,000 people, according to its statement. The operator expressed its commitment to maintaining operations despite the allegations and termination, standing by its record of rapid expansion and strong performance within the Turkish market.
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