November 26, 2008

KFC Indonesia next year will open fewer outlets to focus on larger stores to increase revenue.

About 20 new stores will be opened next year, halved from the original proposal of 40, according to PT Fast Food Indonesia, the local operation of KFC franchises.

The new stores would be larger than those originally planned but that the total cost would remain the same, said Fast Food Indonesia director Justinus Juwono.

The new outlets will be between 600-800 square metres in area, up from the original 250-400 square metres, and they will be built as stand-alone units rather than in malls and office buildings.

Independent stores are more profitable as they would have higher transaction volumes and sales, Juwono said, adding that the company would invest up to IDR 160 billion to build the stores.

With the additional outlets, the company expects a 19.6-percent growth in sales next year, bringing total sales revenue to IDR 2.42 trillion, up from this year's sales estimate at IDR 2.02 trillion.

As of the end of September, sales stood at IDR 1.47 trillion, up 31 percent on-year from a total of 334 outlets throughout Indonesia.

The company's net profit in the first three quarters of 2008 rose 33 percent on-year to IDR 89 billion.

US$1 = IDR 12,477.52 (Nov 26, 2008)