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Global fast food giant Yum! Brands is preparing to reestablish its presence in Türkiye, four months after terminating franchise agreements with local operator Is Gida, according to industry sources.
The American corporation, which owns KFC and Pizza Hut brands, has partnered with Value Solution Partners to manage real estate operations as it shifts strategy from franchising to direct market operation in Türkiye.
"Rather than partnering with a new franchisee, Yum! appears to be taking direct control of its Turkish operations," said a retail industry analyst who requested anonymity because discussions are ongoing.
The January termination of Is Gida's franchise rights led to the closure of 537 restaurants across the country, affecting approximately 7,000 employees and creating significant revenue losses for shopping mall operators.
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Yum! Brands terminated its agreement with Is Gida in January 2025, citing the Turkish company's failure to maintain brand standards. Following the termination, Is Gida filed for bankruptcy protection, and all KFC and Pizza Hut locations throughout Türkiye suspended operations.
When announcing the termination earlier this year, Chris Turner, chief financial and franchising officer of Yum! Brands, stated the company had "engaged with Is Gida over several months to provide assistance and resolve key issues, but Is Gida was ultimately unable to maintain compliance with our standards."
Sources familiar with the matter indicate Value Solution Partners has begun negotiations with shopping mall investors to reactivate closed locations, though progress has been slower than anticipated.
Mall operators, who have reportedly lost approximately 80 million Turkish lira monthly in rental income since the closures, are approaching the negotiations cautiously. Many are demanding settlement of outstanding debts and increased rental rates before signing new agreements.
"Most investors want the existing debts paid first and are requesting higher rents," said a source close to the negotiations, noting that Is Gida had reportedly failed to pay rent for 3-4 months before the closures.
KFC and Pizza Hut had maintained a presence in approximately 90 percent of Turkish shopping malls prior to the closures, with average rents around 150,000 Turkish lira per location.
Speculation about potential interest from other restaurant chains has circulated within the industry. However, McDonald's representatives have explicitly denied any plans to acquire the vacant KFC and Pizza Hut locations.
Meanwhile, TAB Gida, which operates Burger King and other fast-food brands in Türkiye, addressed the rumors during a recent shareholders meeting. According to a company statement filed with Türkiye's Public Disclosure Platform (KAP), the company stated it does not have "a strategy to directly acquire the brands."
Despite these official statements, industry sources suggest TAB Gida's chicken brand Popeyes has expressed interest in some former KFC locations, with agreements reportedly reached for a limited number of sites.
The Istanbul Anatolian 1st Commercial Court recently extended the temporary moratorium for Is Gida, Ishway Gida Dagitim, Is Holding, and company executive Ilkem Sahin by two months from April 30, 2025, as bankruptcy proceedings continue.
Ilkem Sahin, CEO of Is Gida, previously acknowledged the company's financial difficulties, stating in an earlier comment that they faced "a debt of billions of Turkish liras, company immovables seized by banks and state institutions, including our factories, and all my savings that I have pledged as collateral."
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