CFC to open 60 outlets this year

JAKARTA (JP): California Fried Chicken (CFC), a local fast food chain owned by PT Putra Sejahtera Pioneerindo (PSP Group), plans to open about 60 outlets this year with small entrepreneurs.

PSP's franchise division vice president, Amir Karamoy, said yesterday the partnership was part of a retail expansion strategy.

"The partnership program will give opportunities to small entrepreneurs to flourish in the country's growing franchise business," Karamoy said.

PSP, which will cooperate with the Ministry of Cooperatives and Small Enterprises in the partnership program, will require entrepreneurs to invest about Rp 350 million (US$144,500) to set up a franchise, he said.

The investment requirement was low compared to foreign fast food franchises, he said.

He said franchises like McDonald's required an initial investment of about Rp 2 billion.

Amir said with a Rp 300 million initial investment, a CFC franchisee could break even in between one-and-a-half years and three years.

Amir said he was optimistic that partnerships with small entrepreneurs would make the company more competitive, especially during the free trade era.

PSP operates several restaurant chains including California Donat, California Pizza, Isabento, Bang Slamet and Sapo Oriental and 221 California Fried Chicken outlets.

Amir said CFC was also expanding its operations in Malaysia, India, and the Middle East.

"We will start CFC outlets in those countries by next year," he said. (02)