KFC fast food restaurant management company, PT Fast Food Indonesia Tbk (FAST) has closed 33 retail outlets this year. However, the closure was carried out only temporarily during the Covid-19 pandemic.
Management revealed that there were two factors that led to the closure of 33 outlets. First, KFC outlets are located at transit points such as airports and stations.
Second, the closure was carried out because the owner of the property area temporarily closed the place. If conditions are normal, management ensures that 33 outlets will be reopened.
“The 33 outlets do not mean they will stop operating. If things improve and the property area reopens, we plan to re-operate the 33 outlets,” management said in an official statement to the Indonesia Stock Exchange (IDX), Wednesday (16/12).
Meanwhile, management admits that the business performance has deteriorated due to the Covid-19 pandemic. KFC sales fell by 30 to 35 percent. This is in line with the decline in outlet revenues in several malls.
“For freestanding and in-line outlets, the decline was not much around 15 to 20 percent. This decrease was due to restrictions on dine-in at restaurants, such as visitors being only allowed 50 percent of the total capacity,” the management said.
Therefore, the company is making efficiency by reducing expenses, such as operations, employee salaries, rentals, and electricity. The company targets sales to reach IDR 500 million in order to book a profit this year.
It is known that KFC suffered a net loss of Rp. 298.33 billion in the third quarter of 2020. This figure is inversely proportional to the realization in the same period last year, where the company earned a net profit of Rp. 175.69 billion.
The company only earned IDR 3.58 trillion in revenue. The realization was down from the previous which reached Rp5.01 trillion.
In 2021, management is optimistic that it can achieve revenues of up to IDR 7 trillion. If that is achieved, the company can reap a profit.
“However, currently we are still trying to compile a budget, because there are still many initiatives we are doing for efficiency of the financing aspect,” management explained.