All Puerto Rico KFC, Taco Bell outlets close

Yum! Brands has temporarily closed all KFC and Taco Bell restaurants in Puerto Rico after ending its relationship with local operator Encanto Restaurants, saying the company no longer met its standards. The shutdown includes 83 KFC and 38 Taco Bell locations and has left nearly 2,000 employees out of work; Encanto also operates Pizza Hut and IHOP restaurants on the island. Yum says it is seeking a new franchise partner, with Ecuador-based Grupo Serrano reportedly a leading candidate, but a potential takeover faces hurdles and Puerto Rico’s economic development agency says it has not been informed of an impasse. Reports of supplier-payment delays, inventory shortages and other financial pressures at Encanto add to concerns about the transition.