Al Jazeera has reported that Yum! Brands, the parent company of KFC and Pizza Hut, has terminated its licensing agreement for these brands in Turkey. The Turkish licensee, Yiş Qida, announced it has filed for bankruptcy following the closure of 573 branches.
While Yum! Brands cited Yiş Qida’s failure to meet product quality standards and other terms of the agreement as the official reason for ending the partnership, industry observers suggest that the decision was significantly influenced by a boycott movement against companies supporting Israel in Turkey. This boycott has reportedly led to a 40% decline in sales for both brands, exacerbating the financial crisis faced by Yiş Qida.