Fastfood Indonesia sees 15% sales increase

Fastfood Indonesia sees 15% sales increase

Publicly listed restaurant-chain company PT Fastfood Indonesia, the holder of the Kentucky Fried Chicken (KFC) franchise in Indonesia, said its sales were expected to rise by 15 percent next year on higher consumer spending and expansion.

Fastfood director J.D. Juwono said the company had projected that sales would increase to Rp 1.05 trillion (US$116 million) from this year's estimate of Rp 914 billion.

"To meet this figure, the company plans to expand by setting up 15 to 20 new outlets and by renovating existing ones. At present, the company has 211 outlets," said Juwono as quoted by Detik.com on Friday.

Juwono said that to support the expansion, the company had allocated Rp 70 billion on capital expenditure next year, with one new outlet estimated to cost between Rp 2 billion and Rp 2.5 billion.

Despite experiencing several external shocks, such as the outbreak of bird flu and terrorist attacks, the company remained optimistic that it could meet this year's sales target.

Juwono said net profit for this year was expected to reach Rp 40 billion, as against Rp 36.3 billion last year.

As of September, the company, which was founded by the Gelael family, had recorded sale revenues of Rp 638 billion.

Operating in more than 37 cities nationwide and employing some 8,400 workers, Fastfood's KFC sells the Colonel's Original Recipe and Hot & Crispy fried chicken.

Fastfood shares ended unchanged at Rp 800 on the Jakarta Stock Exchange on Friday. -- JP