KFC plans to build fewer but larger outlets in 2009

The Jakarta Post, Jakarta | Tue, 11/25/2008 11:33 AM  

The local operator of Kentucky Fried Chicken franchises has halved the number of outlets it planned to open next year in a move that will see it focus on fewer but larger KFCs to increase revenue. 

PT Fast Food Indonesia announced in a statement Monday it will open 20 new stores next year compared to its original proposal of 40. 

However, Fast Food Indonesia director Justinus D. Juwono was quick to add that the new stores would be more spacious than those originally planned but that the total cost would remain the same. 

The new outlets will be between 600 and 800 square meters in area, up from the range of 250 to 400 square meters set in the original proposal. 

The new stores will be built as 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," he said, adding that the company would spend up to Rp 160 billion (US$13.12 million) to build the stores. 

With the additional facilities, the company expects a 19.6 percent growth in sales next year from last year, or a total sales revenue of Rp 2.42 trillion. The company estimates this year's sales at Rp 2.02 trillion. 

As of the end of September, sales stood at Rp 1.47 trillion, up by 31 percent from Rp 1.12 trillion in the same period last year, from a total of 334 outlets throughout the country. 

The company's net profit in the first nine months of this year rose 33 percent to Rp 89 billion from Rp 66.8 billion in the same period last year.