The franchise agreement between Pizza Hut and KFC has been terminated.

In a statement from Yum! Brands, it was announced that the franchise agreement with İş Gıda A.Ş., the owner and operator of all KFC and Pizza Hut restaurants in Turkey, was terminated due to İş Gıda's inability to meet Yum! Brands' standards.

"WE WORKED TO SOLVE ISSUES FOR A FEW MONTHS"

In his statement, Chief Financial Officer Chris Turner said, "Having capable, capital-backed, and committed 3C franchise partners is very important for our business. While we strive to provide them with the necessary support and tools for success every day, we also want our partners to deliver a high-quality experience to our customers. Prior to the termination, as Yum! Brands, we worked for several months to resolve issues and provide support. However, İş Gıda was unable to maintain compliance with our standards and could not uphold its commitment to the fundamental terms of our franchise agreements," he stated.

"WE EXPECT RESTAURANTS TO TEMPORARILY CLOSE"

According to information reported by Habertürk, the termination affects 283 KFC and 254 Pizza Hut restaurants in Turkey, and Yum! Brands stated in the announcement that they expect these restaurants to close at least temporarily. Yum! Brands also mentioned, "While placing great importance on the loyalty of Turkish consumers, we remain committed to the region and are working to reopen as many restaurants as possible in the future." Yum! Brands also stated that they have initiated legal proceedings under the terminated franchise agreements.