50 million shekels in debt and 12 branches: Who will buy KFC

KFC Israel has entered a stay of proceedings with debts of 50 million shekels and 12 branches. Landwer Group and a poultry supplier are interested in purchasing the chain. The article reveals the operational and financial difficulties of the chain, including sanctions on transferring funds from Russia and a decline in profitability since the war.

KFC Israel, operated by Smart Service K&K, has entered a stay of proceedings with debts of 50 million shekels and 12 active branches. Landwer Group and a poultry supplier are interested in purchasing the chain, along with other entities from the restaurant sector. The article reveals that the chain's owners, a Russian citizen and an Israeli citizen, struggled to transfer funds due to sanctions on Russian institutions, and since the war the chain has suffered from declining profitability due to fewer customers and tourists and a consumer slowdown. The global brand owner YUM BRANDS banned advertising during the war. The chain tried to return to kashrut as a growth strategy but failed to find an investor. Reports show revenues of 71 million shekels in 2024 and a loss of 9.4 million shekels, with high rent costs and financing expenses.