KFC franchisee in Israel files for bankruptcy amid genocidal war in the Gaza Strip Smart Service D&K, which manages 12 KFC restaurants in Israel, has asked the court to open bankruptcy proceedings against it. Among the main reasons for the financial crisis, the company places the consequences of the war, a reduction in the number of customers, a decrease in tourism and a decrease in consumer spending.
According to the company's statement, the profitability of the business dropped sharply after the start of the war. At the same time, costs continued to rise due to the opening of new restaurants.
The situation became even more complicated following military conflicts with Iran. The company had to pay rent and cover current expenses even during periods when restaurants were closed. In addition, since 2023 the company has almost completely stopped marketing activities. The company was founded in 2020 as a franchisee of an American chain in the Jewish sector in Israel. The Arab sector franchisee Mefco, which operated 12 restaurants, ceased operations last year.