McDonald's closes 20 outlets
McDonald's closes 20 outlets
JAKARTA (JP): McDonald's Indonesia has temporarily closed 20
of its 101 outlets nationwide due to the economic crisis and the
recent widespread riots.
Company president Bambang H. Rachmadi said over the weekend
the crisis had resulted in the declining purchasing power of
local consumers and the rupiah's sharp depreciation tripled
prices of its imported raw materials.
Six of its outlets were destroyed in massive riots which hit
the country in May.
"We have had to temporarily close those outlets otherwise we
will suffer a greater loss. We will open those outlets again if
the economic condition recovers," Bambang said.
He declined to reveal the amount of the losses.
Bambang said McDonald's had raised the prices of its products
between 10 percent and 15 percent to adjust to the increase in
imported raw materials. (gis)
JAKARTA (JP): McDonald's Indonesia has temporarily closed 20
of its 101 outlets nationwide due to the economic crisis and the
recent widespread riots.
Company president Bambang H. Rachmadi said over the weekend
the crisis had resulted in the declining purchasing power of
local consumers and the rupiah's sharp depreciation tripled
prices of its imported raw materials.
Six of its outlets were destroyed in massive riots which hit
the country in May.
"We have had to temporarily close those outlets otherwise we
will suffer a greater loss. We will open those outlets again if
the economic condition recovers," Bambang said.
He declined to reveal the amount of the losses.
Bambang said McDonald's had raised the prices of its products
between 10 percent and 15 percent to adjust to the increase in
imported raw materials. (gis)