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KFC and Taco Bell, two of the largest fast-food chains in the United States, have stopped operating in Puerto Rico. The company that owns both brands confirmed the closure of all its restaurants on the island, a U.S. territory, after breaking with the local company that had been running them.
In all, more than 83 locations were taken out of service in a move that directly hits thousands of workers and brings to an end, at least for now, nearly six decades of history for one of the brands on the island.
KFC and Taco Bell confirm total shutdown in this territory
Yum! Brands, the parent company of KFC and Taco Bell, announced the simultaneous closure of all its outlets in Puerto Rico. The decision stemmed from the breakdown of its business relationship with Encanto Restaurants, the company that operated the brands on the island under a franchise model. With no operator in place, the restaurants stopped operating overnight.
More than 83 locations will close
The scale of the shutdown is significant. According to reports, KFC alone operated about 83 restaurants on the island, in addition to Taco Bell locations. The exact number of workers affected by the closure of the two brands was not officially specified.
What is known is that Encanto Restaurants, the operator, employs more than 3,000 people, though they are spread across the four brands it runs on the island: KFC and Taco Bell, along with Pizza Hut and IHOP. So the direct impact of this shutdown affects only part of that total, but thousands of jobs are still in limbo.