Popular fast food chain files for bankruptcy, over 30 branches have to close abruptly – fans say the company has “gone downhill”
Given the recent wave of fast-food closures, CHICKEN LOVERS around the world are probably in mourning.
EYM Chicken, a subsidiary of the EYM Group, has closed around 25 KFC restaurants in the Midwest and plans to close more, various media outlets have confirmed.
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The closures, first reported by Peoria, Illinois-based television station WMBD, have resulted in closed KFC branches in many communities and raise concerns about the future of the franchisee’s operations.
“We can confirm that some KFC locations in the area have closed,” they wrote.
“The decision to close a restaurant is always difficult for both the franchisee and the brand.
“We value the patronage of our loyal guests.”
These reports were further supported by photos from local media, with Nation’s Restaurant News reporting that “approximately 25” restaurants were affected.
According to Restaurant Dive, EYM Chicken owned 47 KFC stores at the end of 2023, according to KFC’s franchise disclosure document filed in March, and saw a majority of its stores impacted by these recent closures, according to Restaurant Dive.
ALL CHANGES
When Facebook users heard about the closure, they weren’t too surprised.
“Their chicken went downhill years ago. That’s it, they stopped selling as much, it went bad,” one person wrote.
“The best chicken in the world has come to the point where I can no longer afford it,” commented another.
“Everyone was overcharging! The staff were generally not friendly so it was a perfect recipe for isolation,” added a third.
A fourth even said that “product quality at KFC has declined.”
Snowball effect
This development is the latest in a series of challenges facing the EYM Group, the parent company of EYM Chicken.
In recent years, EYM Group has been embroiled in legal disputes with Yum Brands, KFC’s parent company, particularly over the performance of its Pizza Hut stores, Restaurant Dive reported.
EYM has accused Yum Brands of lagging behind its competitors in terms of technology and operating practices.
Restaurant closures in 2024
Bosses of large restaurant chains have announced a series of restaurant closures. The US Sun has compiled a list of the affected chains.
- Cracker Barrel: Stores in Medford, Oregon, Columbia, South Carolina and Sacramento, California, have closed.
- Mod Pizza: In April, the bosses dramatically closed 27 stores, including some in the state of California.
- Frisch’s big boy: Restaurant managers confirmed the closure of a restaurant in Covington, Kentucky in April.
- Outback Steakhouse: The chain will close 41 underperforming locations this year.
- Two dollars: Four restaurants in Ohio closed in April.
- Chilies: A restaurant in Port Arthur, Texas, was permanently closed, as was one in Irvine, California, and one in Pittsfield, Massachusetts.
- Friendly matches: The bosses confirmed that a branch in Ronkonkoma, Long Island, will be closed.
- Pizza Hut: In late March, a restaurant in Glen Falls, New York, closed, followed by four restaurants in Ohio in June and 15 in Indiana. This was followed in July by a bankruptcy filing by the parent company, which announced the closure of 150 locations.
- Carl’s Jr.: The first location in Boise, Idaho, was closed.
- In and out: An Oakland location was closed earlier this year due to crime in the area.
- Cheesecake Factory: The chain will close a store in Memphis, Tennessee, in July.
- Applebee’s: Has announced the closure of 25 to 35 locations this year.
- Red lobster: The seafood restaurant chain filed for bankruptcy in May and closed over 100 locations.
- Taco John’s: Closed a restaurant in Minnesota and put the building up for sale in May.
- Frisco’s Chicken: The poultry restaurant closed all its locations in the summer
- Rubio’s Coastal Grill: Announced the closure of 48 locations in California after filing for bankruptcy.
- BurgerKing: In June, a location in California was closed after 30 years.
- Foster’s Freeze: Due to financial difficulties, a location in California was closed after five decades in business.
- Chicken Salad Chick: After nine years, the restaurant closed a location in Jacksonville, Florida, without giving a reason.
- Mexico Lindo: The New York City-based restaurant announced its last day of business after 52 years, closing its doors for good on July 31.
- American dream pizza: In July, all locations in Oregon were closed.
- Delicate green: The Southern California-based chain has filed for bankruptcy.
- Lefty’s famous cheesesteaks, hoagies and grill: Due to a family feud, 18 locations were abruptly closed in July.
- Firehouse Submarines: In the summer, a location in the Tri-Cities region of Washington state was closed due to “unforeseen circumstances.”
- Taco time: Taco Bell’s competitor closed a Seattle branch after 50 years following the death of a member of the franchise owner’s family.
- Burgerim: In July, a location in Burlington, Massachusetts, was closed, reigniting fears of bankruptcy in 2020.
- Denny’s: The chain has closed over 40 stores so far this year, with the owner of one store citing vandalism as the reason.
- Starbucks: The chain closed one of its most famous locations in New York City after nearly three decades, with fans blaming the move on crime. It also lost a location in Seattle.
- Subway: In August, the sandwich chain closed more than 20 stores in the U.S. and Canada after a franchisee lost money through fraud.
- I jump: A restaurant in New Hampshire closed its doors after 24 years, leaving four locations in the state.
- Switchback Coffee Roasters: The popular chain filed for bankruptcy in August after more than a decade in business.
- Jimmy John’s: The sandwich shop chain closed a branch in Nevada on August 19 after 12 years, citing overexpansion.
- KFC: The remaining three locations in Rockford, Illinois, were all closed on the same day, August 19. In total, six locations in four cities in Illinois were closed.
- Rusty bucket: The chicken shop chain confirmed its official withdrawal from Florida and announced the closure of some branches, including in Sarasota and Ohio.
- Beppo’s Buca: Olive Garden’s competitor abruptly closed 44 locations in five states before filing for bankruptcy.
- robin: Announced on August 25 the closure of its Ashburn, Virginia location after 15 years of business.
- Noodles & Company: Dozens of locations were closed after contributing to losses of around $2 million.
- Shoney’s: The classic American grocery chain, founded in 1947, officially left Ohio after three decades in business as it reduced its operating footprint.
- From our own cultivation: The Seattle-based sandwich chain announced the closure of ten stores, leaving 150 employees stranded.
- World of Beer: After closing 14 branches, bankruptcy was filed.
- Arby’s: The chain announced a number of closures this year, including in Lexington, Kentucky, Akron, Ohio,
- Uno Pizzeria & Grill: In July, a location in New Jersey was closed, leaving only two in the state. This was followed in August by the closure of a location in Baltimore.
This has reportedly contributed to the declining performance of Pizza Hut stores.
The situation escalated to the point where EYM’s pizza division had to file for bankruptcy after closing several locations in the Midwest.
The EYM Group’s difficulties are not limited to its KFC and Pizza Hut branches.
Last year, EYM King, the group’s Burger King subsidiary, closed dozens of stores and is currently involved in a legal dispute with Armada Oil and Gas.
The lawsuit accuses EYM King of failing to pay rent and violating lease agreements, which exacerbated the company’s financial difficulties, the news agency reported.
This series of business closures is not the only one that has occurred recently.
A popular burger chain is on the brink of bankruptcy after a wave of mass closures. Fans blame the expensive menu as the main culprit.
In addition, a popular pizza chain has closed its last branch in one city.
