KFC indonesia Announces Outlet Closures and Workforce Reduction Amidst Financial Challenges
Jakarta, Indonesia – PT Fast Food Indonesia Tbk (FAST), the operator of the popular KFC franchise in Indonesia, has announced the closure of 19 outlets and a subsequent reduction of its workforce by approximately 400 employees as of September 2025. This strategic decision comes as the company navigates ongoing financial headwinds and seeks to optimize its operational performance.
According to Wahyudi Martono, Director of Fast Food Indonesia, the closures are primarily attributed to lease expirations and the sustained recovery challenges faced by certain locations since the onset of the COVID-19 pandemic in 2020. The announcement was made during a Public Expose event, as reported by detikFinance on February 10th.
“As of September 2025, we have closed 19 outlets, impacting around 400 employees through layoffs,” Martono stated. He emphasized that the closures are not necessarily permanent, with the company actively exploring relocation opportunities to areas demonstrating stronger market potential.
“If we identify areas with robust market demand, we are not simply closing permanently. We are temporarily relocating to find better locations that we anticipate will drive increased transaction volume and overall performance,” Martono explained. This strategy reflects a commitment to adapting to evolving consumer preferences and maximizing profitability.
Financial performance and Ongoing Losses
Despite a rise in gross profit during the first half of 2025, Fast Food Indonesia continues to report net losses. The company’s financial statements reveal a current period loss attributable to the parent entity of Rp138.75 billion (approximately $8.8 million USD), a 60% decrease compared to the Rp348.83 billion loss reported during the same period in the previous year.
However, revenue for the first semester of 2025 decreased by approximately 3.12% to Rp2.40 trillion (approximately $152 million USD), down from Rp2.48 trillion in the prior year. The company did manage to reduce its cost of goods sold, decreasing from Rp1.05 trillion to Rp961.44 billion during the same period. This reduction contributed to a rise in gross profit, increasing from Rp1.42 trillion to Rp1.44 trillion.
strategic Outlook
The closure