KFC Indonesia shutters 47 outlets, lays off thousands of employees
In this article (5)
KFC Indonesia reported a net loss of IDR557.08 billion (over US$36 million) as of the third quarter of this year, resulting in the company’s closure of 47 outlets and sack of 2,274 employees.
In its financial report, KFC Indonesia’s owner, Gelael and Salim Group under PT Fast Food Indonesia Tbk (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, totaling 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 sale targets, while market conditions have further deteriorated.
Questions & Answers
Q.What was KFC Indonesia's financial performance as of the third quarter of this year?
What was KFC Indonesia's financial performance as of the third quarter of this year?
KFC Indonesia reported a net loss of IDR557.08 billion, which is over US$36 million. This downturn led to significant operational changes within the company as it struggled with market conditions and sales targets.
Q.How many employees were laid off by KFC Indonesia?
How many employees were laid off by KFC Indonesia?
KFC Indonesia laid off 2,274 employees. The total workforce now stands at over 13,700, down from nearly 16,000 previously, reflecting a substantial reduction in staff numbers across the company.
Q.What was the main reason for the decline in FAST's revenue?
What was the main reason for the decline in FAST's revenue?
The most substantial factor in FAST’s revenue decline was a sharp drop in food and beverage sales. These sales totalled 3.57 trillion IDR as of the third quarter, representing an annual decrease of 22.4%.
Q.What did FAST's leaders identify as the cause of these downturns?
What did FAST's leaders identify as the cause of these downturns?
FAST’s leaders attributed these downturns to the prolonged negative impacts of the COVID-19 pandemic. They also noted that recovery has not helped the company reach its expected sales targets, and market conditions have deteriorated further.