Popeyes Chicken enters Indonesia<\/p>\n
JAKARTA (JP): American franchised restaurant Popeyes Chicken &
\nBiscuits is pecking its way into Indonesia through PT Cipta
\nSelera Murni, the franchisee of Church's Texas Fried Chicken
\n(TFC) restaurant.<\/p>\n
Executives of Cipta Selera and America's Favorite Chicken
\nCompany Ltd., the franchiser for both TFC and Popeyes, signed
\ncontracts for the extension of TFC franchising and the new
\nfranchising of Popeyes to Cipta Selera here on Saturday.<\/p>\n
Dick Holbrook, president of America's Favorite Chicken
\nCompany, said TFC and Popeyes will not compete with each other as
\nthey target different markets.<\/p>\n
Popeyes will target middle and upper-class customers, while
\nTFC will continue to focus on the middle and lower classes,
\nHolbrook explained.<\/p>\n
"TFC and Popeyes will, side by side, compete with our main
\ncompetitors here," Holbrook said, adding that American-franchised
\nKentucky Fried Chicken is the main opposition for his franchised
\nrestaurants both in their home country, the United States, and in
\nIndonesia.<\/p>\n
He said Asia, especially East and Southeast Asian countries,
\nis the market with the most potential for franchised fried
\nchicken restaurants because the market in the United States is
\nalready saturated and competition there is very tough.<\/p>\n
He noted that the 10 largest franchised chicken restaurants in
\nthe world have been growing more outside the United States,
\nespecially in Asian countries.<\/p>\n
Starting in 1992, America's Favorite Chicken Company acquired
\nthe franchising rights of TFC and Popeyes that year from A.
\nCopeland Enterprices Inc.<\/p>\n
As of last October, the company ran a total of 2,155
\nrestaurants all over the world, including 1,204 TFC restaurants
\nand 951 Popeyes.<\/p>\n
TFC established itself in Indonesia in 1984 through Cipta
\nSelera, which currently runs 48 TFC outlets in 13 cities across
\nthe country.<\/p>\n
Cipta Selera's managing director, Husni Muchtar, said that
\nunder the new contract, his company has to pay US$175,000 in
\nfranchising fees for each franchised restaurant during the next
\neight years and another $20,000 for every outlet it opens.<\/p>\n
Husni said his company plans to open 60 Popeyes outlets during
\nthe next eight years and 30 new TFC outlets during the next seven
\nyears.<\/p>\n
Milly Suwandi, a director of Cipta Selera, said establishing
\none independent outlet costs his company Rp 350 million
\n(US150,000) to Rp 400 million, while opening an outlet in a food
\ncourt costs Rp 200 million.<\/p>\n
She added that one outlet of TFC can contribute between Rp 40
\nmillion to Rp 150 million a month in revenues to the company,
\ndepending on the location and the size of the restaurant.<\/p>\n
Cipta Selera is currently 10 percent owned by Husni Muchtar,
\n60 percent by Husni's father, Atang Latief, and 30 percent by
\nthree other individuals, including Husni's brother.<\/p>\n
Husni, who assumed his current position earlier this month,
\nacquired the 10 percent stake in Cipta Selera from the former
\nmanaging director of the company, Emmy Subronto Laras. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/popeyes-chicken-enters-indonesia-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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