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Poor infrastructure outside Java impedes KFC expansion
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Infrastructure race: President Joko “Jokowi” Widodo (third from right) inspects a section of a toll road construction project in Bogor, West Java, during a recent visit. (JP/Ayomi Amindoni)
P
oor infrastructure in secondary cities has created a hurdle for the expansion of Kentucky Fried Chicken (KFC) operator PT Fast Food Indonesia.
Fast Food Indonesia director Justinus Dalimin Juwono said that KFC expansion was limited to around 30-40 new outlets per year, mostly in Java. Outside of Java, it was still difficult to distribute chicken and spices due to the condition of roads.
"Outside of Java, it took us five to 10 years to even open the second outlet," Justinus said at the company's media briefing in Jakarta on Thursday.
Moreover, he added, the number of chicken suppliers was too small, and as such KFC was forced to set higher prices.
"We hope infrastructure development and the sea toll road will assist distribution in the future," he said.
As of October, KFC has 559 outlets, 335 outlets were in Java and 108 outlets were in Sumatra. PT Fast Food Indonesia owned all of the outlets as the brand principal Yum! Brands, Inc. does not allow Fast Food Indonesia to sub-franchise the restaurant. (evi)
