Dozens of franchisee-owned KFC locations have abruptly closed across the Midwest.
As many as 25 restaurants owned by major fast-food franchise EYM Chicken have closed in Illinois, Indiana and Wisconsin, according to reports.
The closure of several Wisconsin locations will result in the layoff of nearly 100 employees, according to local media WKOW 27 News.
The reason for the closures has not been disclosed, but EYM Chicken’s parent company, EYM Group, has reportedly struggled in recent years.
EYM Group also franchises other fast food restaurants, including Pizza Hut, Burger King, Denny’s and Panera Bread.
Earlier this year, EYM Pizza filed for Chapter 11 bankruptcy after closing more than a dozen Pizza Hut locations in Indiana and Ohio.
Dozens of franchisee-owned KFC locations abruptly closed across the Midwest
KFC locations in Reedsburg, Janesville, Beloit, Stoughton and Watertown are among the closures in southern Wisconsin, according to WKOW 27 News.
The closures began on August 18 and will continue until August 31, the outlet reported.
When KFC filed its franchise disclosure document in March, EYM Chicken was listed as owning 47 locations across the United States as of late last year, according to Dive Restaurant.
This means that the recent closures in three states are likely affecting the majority of franchisee-owned locations.
KFC confirmed the closures – and that all branches are owned by a franchisee – in a statement. Restaurant News of the Nation.
“The decision to close a restaurant is always difficult for both the franchisee and the brand. We appreciate the support of our loyal customers,” the spokesperson said.
Prior to closing several Pizza Hut locations earlier this year, EYM Group was involved in legal disputes with KFC’s parent company, Yum Brands.
Pizza Hut sued the franchisee for failing to pay royalties on time, while EYM accused Yum Brands of lagging behind its competitors in technology and practices.
This comes amid widespread restaurant closures across the United States in recent months as rising food inflation and high operating costs continue to weigh on businesses.
Up to 25 restaurants owned by major fast food franchise EYM Chicken have closed in Illinois, Indiana and Wisconsin
Earlier this year, EYM Pizza filed for Chapter 11 bankruptcy protection after closing more than a dozen Pizza Hut locations in the Midwest.
Rising food and labor costs are causing local small businesses and supermarket chains to close and even forcing some companies to declare bankruptcy.
Popular Italian restaurant Buca di Beppo filed for bankruptcy earlier this month, just days after abruptly closing 13 underperforming locations across the United States.
In a statement to DailyMail.com, the company confirmed it had closed branches that “were unable to recover from the damage caused by the pandemic and other market pressures.”
In June, a Subway franchisee filed for Chapter 11 bankruptcy, putting all 48 of its locations at risk of closing.