EYM Chicken, a subsidiary of major fast-food franchisee EYM, has closed around 25 KFC restaurants in the Midwest, according to media reports.
Closures were first reported earlier this week by WMBD, a Peoria, Illinois-based television station. Other local media outlets confirmed reports of closures with photographs of shuttered restaurants, and Nation's Restaurant News reported "about 25" locations were affected.
Restaurant Dive confirmed the locations were not accepting online orders, and called several of the reportedly closed stores to receive no answer. When KFC filed its franchise disclosure document in March, EYM Chicken was listed as owning 47 stores at the end of 2023, meaning recent closures likely impacted a majority of its units.
EYM Group has had a difficult time in recent years. The operator has been embroiled in court disputes with KFC’s parent company, Yum Brands, over the performance of EYM’s Pizza Hut locations. EYM accused the company of falling behind its competitors in technology and practices, and the company's pizza division file for bankruptcy following the closure of several Midwest units.
Last year, EYM’s Burger King subsidiary, EYM King, closed dozens of units and is currently facing a lawsuit from Armada Oil and Gas for allegedly failing to pay rent and for breaking a lease.
The restaurant industry has been plagued by operator and brand bankruptcies since early 2023, when Toms King, a 90-unit Burger King operator, filed for Chapter 11. Earlier this summer, a 48-unit Subway franchisee sought bankruptcy protections as did a large Arby’s operator.
KFC did not respond to a request for comment regarding the closures of EYM Chicken’s stores.
