by Ethan Huff, Natural News:
Hundreds of employees were let go abruptly after dozens of KFC restaurant locations across Illinois, Indiana and Wisconsin closed suddenly this past week.
As many as 25 KFC restaurants owned by fast food franchisee EYM Chicken are now empty retail shells, but parent company EYM Group, which owns other fast-food chains like Pizza Hut, Burger King, Denny’s and Panera Bread, is not yet indicating the reason for the closures.
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EYM Group has been struggling for years, it turns out. EYM Pizza filed for Chapter 11 bankruptcy protection after closing more than a dozen Pizza Hut locations in Indiana and Ohio.
WKOW 27 News reported that KFC locations in Reedsburg, Janesville, Beloit, Stoughton and Watertown are among the many closures there, which began on August 18 and will continue through August 31.
Back in March, KFC filed its franchise disclosure documents showing that it owns 47 restaurant locations across the U.S. Based on this sudden closure of 25 stores, this means the majority of EYM Chicken’s franchise locations will be closed before September begins.
“The decision to close a restaurant is always difficult for both the franchisee and the brand,” a spokesperson for KFC said. “We appreciate the patronage of our loyal guests.”
Before it decided to close a spate of Pizza Hut locations earlier this year, EYM Group was in a major court dispute with Yum Brands, KFC’s parent company. Pizza Hut sued the franchisee for not paying its royalties on time, and EYM accused Yum Brands of falling behind its competitors in technology and business practices.
(Related: Paul Craig Roberts believes that a massive financial collapse is coming that will destroy everyone’s assets.)
U.S. retail, restaurant sectors collapsing as inflation soars
These fast-food closures are just a drop in the bucket as America’s entire retail sector is in the throes of an implosion. Inflation is sky-high and still rising while costs are exceeding what businesses can afford to pay in order to stay afloat.
Food and labor costs are simply too much for the market to bear, which is leading to stores and brands cutting way back. This is creating a retail apocalypse that will eventually result in a commercial real estate (CRE) industry collapse.
Earlier this month, Italian chain Buca di Beppo filed for bankruptcy just a few days after it abruptly and out of nowhere shut down 13 of its lowest performing locations across the U.S.
The company said it closed certain locations because they were “unable to recover from the damage caused by the pandemic and other market pressures.”
Back in June, a Subway franchisee also filed for Chapter 11 bankruptcy protection. Some 48 different Subway locations are now at risk of closure in the coming days.
“Prices have skyrocketed while quality and quantity have declined,” one commenter wrote about the sad state of the U.S. fast-food industry these days. “Why bother going out except for special occasions?”
“Those states are economically depressed,” wrote another. “There is no growth other than welfare, stock market retirees, and government retirees. Lots of retirees, period.”
