KFC Indonesia, owned by Gelael and Salim Group under PT Fast Food Indonesia Tbk (FAST), reported a net loss of 557.08 billion IDR (over US$36 million) as of the third quarter of this year, resulting in the company’s closure of 47 outlets (as of September) and layoff of 2,274 employees.
KFC opened in Indonesia in 1979 with a single outlet in Indonesia’s capital Jakarta. The company expanded quickly to other cities across Indonesia, with the Salim Group becoming a majority shareholder in 1990.
In its financial report, FAST disclosed that in the first nine months of this year, the company reduced its operational store count to 715 from the 2023 figure of 762. Its workforce has also significantly decreased, now standing at over 13,700 employees compared to nearly 16,000 previously.
The most substantial factor in FAST’s revenue decline was a sharp drop in food and beverage sales, totalling 3.57 trillion IDR as of the third quarter, an annual decrease of 22.4%. FAST’s leaders attributed these downturns to the prolonged negative impacts of the Covid-19 pandemic.
Recovery has yet to help the company reach its expected sales targets, while market conditions have further deteriorated, exacerbated by the ongoing Middle East crisis. – Vietnam News
