Bisniscom: KFC Indonesia Shuts Down 20 Stores and Lays Off Over 1,000 Employees Amid Financial Restructuring

Strategic Store Closures and Job Cuts

In a significant move to streamline operations, PT Fastfood Indonesia Tbk has closed 20 of its KFC outlets across the nation from January to September 2025. This brings the total number of operational outlets down to 695, a reduction from 715. The decision to close these stores has also resulted in the layoff of 1,041 employees, reflecting the company's commitment to enhancing operational efficiency amidst challenging market conditions.

Wahyudi Martono, the Director of FAS, emphasized that these closures are part of a broader strategy aimed at improving the company's financial health. 'We are optimizing our supply chain and strengthening the performance of our subsidiaries to support long-term growth,' he stated during a recent public expo.

Financial Performance and Loss Reduction

The company's financial report for the third quarter of 2025 reveals a notable reduction in net losses, which amounted to IDR 239.58 billion, down 56.99% from the previous year. This improvement is attributed to a decrease in sales and distribution expenses, which fell from IDR 2.09 trillion to IDR 1.91 trillion. Additionally, general and administrative expenses have also declined, showcasing the company's efforts to control costs and enhance productivity.

The reduction in operating expenses, which decreased from IDR 36.95 billion to IDR 31.97 billion, further illustrates FAS's commitment to financial restructuring. These measures are critical as the fast-food industry continues to face competitive pressures and shifting consumer preferences.

Future Outlook and Market Strategy

Looking ahead, PT Fastfood Indonesia is implementing strategic measures to bolster profitability and financial structure. This includes cost control initiatives, productivity enhancements, and collaborations with strategic partners to tap into new market potentials. As the company navigates these changes, it aims to position itself for sustainable growth in a rapidly evolving industry.

The fast-food sector in Indonesia is witnessing significant transformations, and companies like KFC must adapt to remain competitive. The actions taken by FAS may serve as a model for other businesses facing similar challenges in the current economic landscape.

Sources: KFC Indonesia Lakukan Efisiensi Tutup Gerai dan Kurangi 1 041 Karyawan; https://www.youtube.com/watch?v=1dznI1pba-w