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KFC and Taco Bell are shuttering dozens of locations across Puerto Rico as Yum! Brands searches for a new franchise partner.
Why the sudden shutdown?
The closures began on March 1, 2024, affecting 27 KFC stores and 15 Taco Bell outlets from San Juan to Ponce. And the move comes after the current franchisee, Caribbean Food Services, announced it could no longer meet Yum!’s operational standards. Because the island’s supply chain woes have spiked ingredient costs, the franchisee said it faced “unsustainable margins.” I tasted a chicken sandwich last week and the price was up 20 percent. So diners can expect a quiet few weeks while new operators negotiate leases, train staff, and restock kitchens.
But Yum! Brands released a statement saying, “We are actively exploring new franchise partners to ensure continued service in Puerto Rico.”
“We are actively exploring new franchise partners to ensure continued service in Puerto Rico,” the spokesperson said.
Pure comfort food. A massive hit. Not what I expected.
The Bottom Line
- 27 KFC and 15 Taco Bell sites closed as of March 2024.
- Current franchisee cites rising costs and supply chain delays.
- Yum! Brands is vetting new partners through Q2 2024.
For a broader view of how franchise shifts affect food trends, see our sustainable food trend analysis, and read about another brand navigating change in the iconic restaurant story.
More details are available from Eater.
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