Indonesia. KFC retailer issuer in Indonesia, Fast Food Indonesia (FAST), revealed that it has closed up to 19 outlets throughout 2025. As a result of the closures, as many as 400 employees were affected and experienced layoffs (PHK).
This step was taken due to KFC’s continued financial losses over the past five years. This was announced by FAST management at FAST’s incidental public expose held on Thursday, October 2, 2025.
“As of September 2025, the Company has closed 19 outlets and approximately 400 employees have been affected by layoffs,” KFC management explained in an information disclosure, as quoted by CNBC Indonesia on Monday (October 6, 2025).
However, the company also stated that it will continue to plan for expansion, but did not specify what metrics it will pursue.
“In terms of business model, the Company will continue to expand by opening new outlets,” said KFC management.
This closure is nothing new; KFC has consistently closed stores for several years. Throughout 2024, KFC closed a total of 55 stores.
By the end of the first semester of this year, the number of outlets managed by KFC was 698 stores.
Conditions Still Challenging
KFC Indonesia revealed that the company is currently still facing major challenges in its efforts to turn losses into profits.
The company’s management also openly discussed the challenges faced by the company, starting from the COVID-19 outbreak that began in 2020, followed by the boycott from 2023 to 2024, and finally, the decline in purchasing power that the company is currently facing.
These three things ultimately caused the company to experience a significant decline in transactions at its outlets.
To minimize the negative impacts of these three factors, management revealed that the company has implemented several strategies, starting from making efficiencies in the restaurant support structure and also relocating and closing several outlets that have not experienced sales and EBITDA recovery since 2020.
Regarding the entry of Haji Isam’s children into the FAST business entity, management firmly stated that PT Jagonya Ayam Indonesia would be fully operational by the end of the 2026 quarter.
“The purchase of shares made by PT Shankara Fortuna Nusantara (SFN), whose Beneficiary Owner is the daughter of Mr. Haji Isam, for shares of PT Jagonya Ayam Indonesia is up to 35% of the shares of PT Jagonya Ayam Indonesia. Then regarding the corporate actions of the Company itself, as stated in the Annual General Meeting of Shareholders, the Company does not plan to carry out corporate actions in the form of acquisitions or sales of the Company’s shares or sales of shares of the Company’s subsidiaries,” explained the management.
Furthermore, regarding rumors of plans to collaborate with the Free Nutritious Meal Program (MBG), KFC Indonesia firmly stated that the company has not interacted or been in contact with the National Nutrition Agency and the Company does not have an agenda to participate in the Free Nutritious Meal Program.
KFC is still losing money
The issuer managing Kentucky Fried Chicken (KFC) in Indonesia, PT Fast Food Indonesia Tbk (FAST), still posted losses throughout mid-2025. KFC was known to have last recorded a profit in 2019 or exactly
According to the company’s latest financial report, its net loss as of June 30, 2025, decreased by 60.2% year-on-year (yoy) to Rp138.75 billion. Meanwhile, in 2024, the company posted a loss of Rp348.83 billion.
On the top line, the Gelael Family-owned company posted revenue of Rp2.40 trillion, a 3.12% decrease from Rp2.48 trillion in 2024.
This revenue was supported by the third-party food and beverage segment of Rp2.39 trillion, commissions on consignment sales of Rp9.37 billion, and delivery services of Rp855.98 million.
Meanwhile, the company’s cost of goods sold also declined to Rp961.44 billion, a slight decrease from Rp1.06 trillion last year.
The company’s assets were recorded at Rp4.10 trillion at mid-year, up from Rp3.53 trillion last year.
Meanwhile, FAST’s liabilities and equity positions were recorded at IDR 3.97 trillion and IDR 129.95 billion, respectively.
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