International fast-food chains Kentucky Fried Chicken (KFC) and Pizza Hut have announced to shut their operations in Nepal citing labor issues being the reason.

Local franchisee had been running KFC and Pizza Hut outlets in Durbar Marg since 2009 and in Blue Bird Mall since 2013. Devyani International is a subsidiary of Indian multinational RJ Corporation. During its operation, it had been hit by several controversies and a scandal.

KFC and Pizza Hut outlets had shut operation from May 13, citing problems with trade union leaders.

Speaking to national daily Republica, Director of Devyani International Rohit Kohli said union leaders at KFC and Pizza Hut crossed limits at different phases of time on the issue of wages. “The average salary of KFC and Pizza Hut workers is around Rs 24,000. But they were demanding for more,” Kohli said. “This left with no option but to withdraw from Nepal.” He also added that “KFC and Pizza Hut might never return to Nepal.”