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Jakarta Post

KFC operator eyeing moderate growth next year

Anton Hermansyah (The Jakarta Post)
Jakarta
Thu, December 29, 2016

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KFC operator eyeing moderate growth next year Fast Food Indonesia director Justinus Dalimin Juwono answers questions from journalists during the company's public expose on Dec. 29 in Jakarta. (JP/Anton Hermansyah)

F

ast Food Indonesia, the franchise holder of American fast food giant Kentucky Fried Chicken (KFC), expects to see its revenue grow by between 8 and 10 percent next year with the opening of dozens of new outlets across the country.

FFI director Justinus Dalimin Juwono said the company planned to open 30 new restaurants and 20 smaller outlets under the “KFC Box” brand to push for expansion.

With the expansion, the firm hopes to see its revenue reach Rp 5.4 trillion (US$400.92 million) in 2017.

"The KFC Box [outlets] is our [sales] volume booster, as they are located in strategic places, like train stations and bus terminals. The investment for the outlets is also lower than for regular ones, and the menu is cheaper," Justinus said Thursday during the company’s public expose.

FFI currently operates 570 KFC outlets across the archipelago, home to more than 250 million people.

In 2016, Justinus added, the company had opened 35 new outlets. Next year, it will allocate Rp 350 billion in capital expenditure, up from Rp 300 billion capex allocated this year.

"The Indonesian market is not stagnant yet for KFC, in Malaysia, there are 790 outlets for its 28 million population. However, we are here challenged by geographical conditions that make expansion more expensive," he said. (hwa)

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