All 537 KFC branches in Turkey closed as a result of boycott movement by economic supporters of Israel
Association for Defending Victims of Terrorism - In a rare event, American fast food chain KFC, one of the world's largest chains, has closed all 537 of its branches in Turkey following the bankruptcy of its local operator in Turkey, İş Gıda.
The closure, which has left more than 7,000 employees unemployed, is recorded as one of the largest business exits in modern Turkish history, according to Tabnak. Multiple sources, including news reports and social media posts, attribute the event to a combination of financial difficulties, huge debts, and pressure from the boycott movement in support of Palestine that has targeted Western brands. This report examines the details of the incident, the economic and political context, and its effects.
Background: Işgida Bankruptcy
Işgida, which had held the franchise rights for KFC and Pizza Hut in Turkey since 2020, officially declared bankruptcy on February 7, 2025 . The company was facing debts of 7.7 billion Turkish liras (about $214 million).
“We are facing billions in debts, the seizure of the company’s assets by banks, and even my personal capital that I put up as collateral,” Işgida CEO Ilkem Şahin said in a statement.
“We are facing billions in debts, the seizure of the company’s assets by banks, and even my personal capital that I put up as collateral,” Işgida CEO Ilkem Şahin said in a statement. He also announced that salaries would be paid until the end of December 2024, but January salaries remained unpaid, leading to widespread employee protests in cities such as Istanbul.
A key factor in this bankruptcy was the boycott movement against Western brands in Turkey, which intensified in response to the war in Gaza and accusations that some American companies were supporting Israel. According to reports from Kashmirite and Days of Palestine, the movement was formed after the escalation of the Gaza conflict since October 2023 , which has so far killed more than 50,000 Palestinians and displaced the majority of Gaza’s population.
Why was KFC targeted?
KFC, as a brand owned by Yum! Brands, was targeted by the boycott along with companies such as McDonald’s, Starbucks, and Pepsi over accusations of indirectly supporting Israel or remaining silent about its actions.
In Malaysia, KFC closed more than 100 of its branches in 2024 due to similar boycotts (Middle East Eye, April 30, 2024). In Pakistan, protesters attacked KFC branches in Karachi and Lahore, and even the Pakistan Premier League (PSL) was criticized for its partnership with KFC and Pepsi. Although KFC is not officially on the Boycott, Divestment and Sanctions (BDS) movement’s boycott list, activists in Turkey and other Islamic countries criticized the brand for being American and for its presence in the Israeli market. A report by the Munsaf Daily shows that KFC’s sales in Turkey have fallen by 40 percent in recent months.
