KFC: fewer but larger outlets for 2009

25-11-2008 | |

With the aim of increasing revenue, the Indonesian operator of Kentucky Fried Chicken franchises has decided that there will be fewer but larger KFCs in 2009.

The number of KFC stores planned to open in 2009 has been halved and will now be 20, compared to the original proposal of 40, announced PT Fast Food Indonesia. However, the new stores would be more spacious than those originally planned but that the total cost would remain the same, said Fast Food Indonesia director Justinus D. Juwono.

The new outlets

The new stores are planned to be 600 x 800 sq m, up from the original measurements of 250 x 400 sq m. Additionally, the stores built in 2009 will be stand-alone units, rather than in malls and office buildings as was originally planned.

“Based on our experience, building an independent store is more profitable, as the outlets will have a higher transaction volume and sales,” said Juwono, adding that the company would spend up to Rp 160 bln (US$13.12 mln) to build the stores.

It is reported that with the additional facilities, the company expects a 19.6% growth in sales, or total sales revenue of Rp 2.42 tln (US$201 mln).

Natalie Berkhout Freelance journalist