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Mystery as dozens of KFC restaurants abruptly close across the Midwest
Dozens of KFC locations owned by one franchisee have abruptly closed across the Midwest.
Up to 25 restaurants owned by major fast food franchisee EYM Chicken have shut in Illinois, Indiana and Wisconsin, according to reports.
The closure of several locations in Wisconsin will lead to nearly 100 employees being laid off, according to local media WKOW 27 News.
The reason for the closures has not been revealed, 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 protection after closing more than a dozen Pizza Hut locations in Indiana and Ohio.
Dozens of KFC locations owned by one franchisee have 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 US at the end of last year, according to Restaurant Dive.
This means that the recent closures across three states are likely affecting the majority of the locations owned by the franchisee.
KFC confirmed the closures - and that all the locations are owned by one franchisee - in a statement to Nation's Restaurant News.
'The decision to close a restaurant is always difficult for both the franchisee and the brand. We appreciate the patronage of our loyal guests,' the spokesperson said.
Before closing several Pizza Hut locations earlier this year, EYM Group has been involved in court disputes with KFC's parent company Yum Brands.
Pizza Hut sued the franchisee for not paying its royalties on time, while EYM accused Yum Brands of falling behind its competitors in technology and practices.
It comes amid widespread restaurant closures across the US in recent months, as soaring food inflation and elevated running costs continue to hit businesses.
Up to 25 restaurants owned by major fast food franchisee EYM Chicken have shut 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
Increased costs for food and labor are causing local small businesses to close, chains to shutter locations and are even forcing some companies into bankruptcy.
Popular Italian restaurant Buca di Beppo filed for bankruptcy earlier this month - just days after it abruptly shut 13 underperforming locations across the US.
In a statement to DailyMail.com, the company confirmed it had closed locations which 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 protection, putting its 48 locations at risk of closure.