KFC franchisee in Israel files for insolvency proceedings
The KFC franchisee in Israel, Smart Service K&K, has filed a request for insolvency proceedings at the Be'er Sheva District Court. The chain, which operates 13 branches, reports debts of 50 million shekels, of which 37 million shekels are owed to the owners. The company attributes the decline in profitability to the events of October 7 and the war.
The franchisee of the fast-food chain KFC in Israel, Smart Service K&K, filed a request today at the Be'er Sheva District Court to appoint a temporary trustee as part of insolvency proceedings. The chain, which operates 13 branches, reports debts totaling 50 million shekels, of which 37 million shekels are owed to the shareholders, who are residents of Russia. According to the request, the events of October 7 and the Iron Swords war led to a sharp decline in profitability, due in part to a lack of customers, a severe blow to tourism, and a general consumer slowdown, alongside increased expenses from continued branch openings. The company describes that since 2023 it has been forced to almost completely halt its marketing activities and refrained from implementing menu innovations. In 2024, the loss amounted to 9 million shekels. The company, represented by attorney Eviatar Kramer, requests the appointment of a temporary trustee and temporary operation of its business.