Will KFC fried chicken chain leave Israel forever?
The KFC franchisee in Israel has filed an urgent request for a stay of proceedings due to debts of 50 million shekels, and is considering closing its branches. The franchisee claims the crisis was caused by the Iron Swords war, damage to tourism, and sanctions on Russia. A hearing on appointing a trustee will take place tomorrow in Be'er Sheva.
Is KFC leaving Israel? The franchisee in Israel has filed an urgent request for a stay of proceedings due to debts of 50 million shekels, of which 1.9 million shekels are owed to employees. The franchisee, Smart Service from Russia, claims the crisis was caused by the Iron Swords war, damage to tourism, rising costs, and sanctions on Russia preventing the flow of funds. The chain operates 12 branches, after eight branches in the Arab sector were closed last year. Employees were surprised by the request, and October salaries are in doubt. A hearing will take place tomorrow at the Be'er Sheva court to appoint a trustee. The article wonders whether this is mismanagement or a mismatch with Israeli taste, noting that local imitations are actually succeeding.