Sukma Kanthi Nurani, Jakarta – PT Sarimelati Kencana Tbk (PZZA), the licensee of Pizza Hut in Indonesia, has reported a decline in both its outlet count and workforce. In its unaudited financial report for the third quarter of 2024, the company revealed that the number of outlets had decreased from 615 in September 2023 to 595 in September 2024, meaning the closure of 20 outlets within a year.

"As of September 30, 2024, and December 31, 2023, the company operated 595 and 615 Pizza Hut outlets in Jakarta and other cities in Indonesia, respectively," as stated in the company's report to the Indonesia Stock Exchange (IDX) on Monday, November 18, 2024.

In addition to outlet closures, the company also experienced a decline in net sales. Third-quarter net sales reached Rp2.3 trillion, a decrease from Rp2.7 trillion in the same period of the previous year. Consequently, the company's losses increased to Rp38.9 billion.

The decline was primarily driven by a decrease in food and beverage sales. Food sales fell to Rp1.9 trillion from Rp2.5 trillion, while beverage sales dropped to Rp132 billion from Rp197 billion.

The company's workforce also shrank, with the number of permanent employees decreasing from 5,022 to 4,651 between December 31, 2023, and September 30, 2024, reflecting a reduction of 371 employees.

Boy Lukito, Operational Director of PT Sarimelati Kencana Tbk, attributed these challenges to two main factors: a decline in middle-class purchasing power and global geopolitical uncertainty. To address these issues, PZZA has implemented strategies such as the "Ristorante" concept, which has been introduced in 30 outlets.

PZZA is not alone in facing these challenges. As previously reported, PT Fast Food Indonesia Tbk (FAST), the KFC franchisee in Indonesia, and ACE Hardware have also experienced similar difficulties.

– Sukma Kanthi Nurani, Hammam Izzuddin, Kakak Indra Purnama

Source: https://en.tempo.co/read/1943035/pizza-hut-indonesia-closes-outlets-reduces-workforc