From Nation's Restaurant News · · 1m 20s
KFC Taco Bell Puerto Rico Franchise Files Bankruptcy
Puerto Rico's KFC and Taco Bell franchise operator files bankruptcy after Yum Brands ends partnership.
In brief
Puerto Rico's KFC and Taco Bell franchise operator files bankruptcy after Yum Brands ends partnership. Encanto Restaurants filed Chapter 11 bankruptcy on November 5, 2026, following Yum Brands' decision to end its franchise relationship. Originally reported by Nation's Restaurant News.
KFC Taco Bell Puerto Rico Franchise Files Bankruptcy
Encanto Restaurants filed for Chapter 11 bankruptcy on November 5, 2026.
Yum Brands Ends Franchise Relationship
Yum Brands announced it was ending its longstanding relationship with Encanto Restaurants three days prior.
Bankruptcy Financials
Encanto reported $123.9 million in liabilities against $29.8 million in assets.
Major Creditors
Banco Popular de Puerto Rico is owed approximately $85 million by Encanto.
Additional Claims
Encanto has claims of $3 million to Arco Publicidad, $3 million to LUMA Energy, and $2.5 million to Plaza Warehousing & Realty.
Employee Impact
Approximately 2,700 employees were affected by the closure of Encanto's KFC and Taco Bell restaurants.
Yum Brands' Response
Yum Brands remains committed to Puerto Rico and seeks a new franchisee to reopen impacted restaurants.
Franchise History
Encanto operated KFC, Taco Bell, and Pizza Hut in Puerto Rico since 2004.
Company Scale
Encanto is among Puerto Rico's 10 largest private sector employers with over 3,000 employees and 180 restaurants.
What to remember
Encanto Restaurants filed Chapter 11 bankruptcy on November 5, 2026, following Yum Brands' decision to end its franchise relationship.
