(AP) — All KFC and Taco Bell restaurants in Puerto Rico have temporarily closed after parent company Yum! Brands ended its relationship with an island-based operator, officials said Monday.
Kentucky-based Yum! Brands said it made the “difficult decision to end its relationship” with Encanto Restaurants because that company “can no longer operate in a way that meets our standards.”
“We remain deeply committed to Puerto Rico and are working as quickly as possible to welcome customers back to our restaurants,” Yum! Brands said in a statement shared with The Associated Press.
KFC Puerto Rico and Taco Bell Puerto Rico posted brief statements saying they are working to find a new franchise partner.
“We hope to be able to serve you again very soon,” KFC Puerto Rico wrote on Instagram.
Encanto Restaurants did not immediately return a message seeking comment.
Puerto Rico’s first KFC restaurant opened in 1967, while Encanto Restaurants began operating Taco Bell in 1985, according to the company.
Encanto Restaurants also operates Pizza Hut and IHOP restaurants in the U.S. territory. Overall, it operates 180 restaurants on the island and employs more than 3,000 people.
Valley KFC stores have also closed over the years
In the Central Valley, longtime KFC franchisee JEM Management has also closed restaurants, though under different circumstances.
The Fresno-based operator, whose founder, Joe Desmond, became one of the first 10 KFC franchisees, closed three Fresno KFC locations in 2025. It also closed Wendy’s restaurants in Selma, Visalia and Fresno earlier this year, The Business Journal reported in January.
At the time, JEM operated about 20 KFC and 14 Wendy’s locations in the region. Those closures came as California franchise operators faced a $20-per-hour minimum wage for fast-food workers, which took effect in April 2024, along with rising rent, food and utility costs.
The Business Journal contributed to this report.
