İş Gıda A.Ş., the Turkish operator for the KFC and Pizza Hut brands, has filed for bankruptcy, resulting in the closure of all 537 of its restaurants across Turkey and the dismissal of 7,000 employees.
The company reported debts totaling $214 million (7.7 billion Turkish lira) and attributed its financial collapse to the abrupt cancellation of its franchise agreement with U.S.-based Yum! Brands, which owns the two fast-food giants.
The bankruptcy was officially declared on February 7, 2025. Following the announcement, banks seized İş Gıda’s assets, including its production facilities. This move marked the end of the company’s ambitious expansion strategy, which saw the number of outlets nearly triple between 2020 and 2024.
Amid the financial chaos, İş Gıda also faced backlash from employees over unpaid wages. Many staff members had not received their January salaries, leading to protests and mounting public pressure.
Adding to the company’s troubles was a sharp drop in sales, especially at KFC, which saw a reported 40% decline in revenue. This was largely driven by a consumer-led boycott against Western brands believed to be associated with Israel, in response to the ongoing conflict in Gaza.
The collapse of İş Gıda underscores the serious risks that global franchises face when operating in politically sensitive and economically unstable regions.
İş Gıda’s downfall serves as a cautionary tale for international businesses. Overexpansion, financial overreach, and failure to anticipate or adapt to geopolitical shifts can jeopardize even the most recognizable brands.
