Fast Food Indonesia, the operator of KFC Indonesia, has closed 19 outlets and laid off around 400 employees by September 2025 as part of a network efficiency and restructuring strategy.
The move follows 47 closures in 2024, which brought KFC’s nationwide footprint down to 715 outlets by yearend.
Fast Food Director Wachjudi Martono said the closures were primarily due to expiring lease agreements and underperforming outlets that have struggled to recover after the Covid-19 pandemic.
“If leases expire and outlet performance shows no improvement, closure becomes a rational option,” he said during a virtual public briefing.
However, Mr Martono stressed that not all closures are permanent. Some are being relocated to nearby areas with stronger market potential.
“If consumer purchasing power remains strong in the region, we’ll reopen in more strategic locations to boost dine-in traffic,” he added.
Challenging business conditions
Since 2023, Fast Food has been consolidating its store network through a mix of closures, relocations, and new openings to stay profitable amid challenging business conditions.
The company has faced multiple headwinds:
In H1 2025, Fast Food reported revenues of USD 144.4 million, down 3.21% from the same period last year.
Despite weaker sales, the company reduced its net loss to USD 8.3 million as of June 2025, a significant improvement compared from H1 2024.
Fast Food Indonesia views its restructuring strategy as essential to stabilizing operations and positioning KFC for long-term recovery in Indonesia’s competitive fast-food market.
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