Muhammad Ghafur Fadillah, Jakarta – The operator of KFC Indonesia, Fast Food Indonesia (FAST), has closed 19 outlets and laid off about 400 employees by September 2025, as part of a network efficiency and restructuring strategy.
The move follows the closure of 47 outlets in 2024, leaving KFC with a total of 715 restaurants nationwide last year.
FAST director Wachjudi Martono said the closures were primarily due to expiring lease agreements and weak performance at certain outlets that have struggled to recover since the Covid-19 pandemic.
"If leases expire and outlet performance shows no improvement, closure becomes a rational option," Wachjudi said during a virtual public briefing on Thursday.
He stressed, however, that not all closures are permanent. Some are part of a relocation strategy, with new outlets planned in nearby areas with stronger market potential. "If consumer purchasing power remains strong in the region, closures are temporary. We will reopen in more strategic locations to boost dine-in traffic," he added.
Since 2023, FAST has been consolidating its store network through a mix of closures, relocations, and new openings to maintain profitability amid challenging business conditions.
The company has faced compounded pressures, including the pandemic in 2020, consumer boycotts linked to the Israel-Palestine conflict in 2023-2024, and sluggish household purchasing power extending into 2025.
In the first half of 2025, FAST reported revenues of Rp 2.4 trillion ($144.4 million), down 3.21 percent from Rp 2.48 trillion in the same period last year.
Despite weaker sales, the company managed to narrow its net loss to Rp 138.75 billion ($8.3 million) as of June 2025, a significant improvement compared to a Rp 348.83 billion loss in the first half of 2024.
The operator said the restructuring strategy remains critical to stabilizing operations and positioning the KFC brand for long-term recovery in Indonesia's competitive fast-food market.