537 Fast Food Outlets in Turkey Face Closure: Contracts Terminated
Yum! Brands has announced the termination of franchise agreements for KFC and Pizza Hut restaurants in Turkey. This decision, made due to the company's inability to meet standards, affects 537 restaurants in the country. Yum! Brands also stated that it expects the restaurants to temporarily close.
The official statement indicated that this decision impacts 283 KFC and 254 Pizza Hut restaurants in Turkey, due to the company’s failure to comply with established standards. The termination is anticipated to result in the temporary closure of the restaurants. Yum! Brands also announced plans to collaborate with new partners to provide the best service to its customers during this process.
KFC has recently faced a troubled period as the target of various boycotts worldwide. In Malaysia, 108 branches were reported to be temporarily closed due to a boycott initiated in support of Palestine. Additionally, KFC sales in the Middle East, Turkey, and North Africa saw a decline of up to 10% in the third quarter. The chicken chain faced backlash in Algeria, Pakistan, Germany, and many other countries.
This series of events has led to a significant decrease in the company's revenues, adversely affecting its financial status. The backlash, which is not limited to the Middle East, has visibly impacted the brand's global perception. However, the company stated that it would develop and implement various strategies to navigate this challenging period.
In Turkey, a crisis also emerged from a hamburger chain. A recently opened American hamburger franchise, Burger King, in Rize became the center of attention as AK Party mayors and local officials attended its opening. The protest led by Dr. Kemal Sağlam, who shouted slogans such as "Down with Israel," caused chaos at the event.
This incident resulted in brief tension between the local populace and event attendees. The attack on Dr. Sağlam resonated widely on social media, eliciting various responses and messages of support and protest. This situation highlights the challenges that global brands may face in sensitive regions like Turkey.