KFC shuts 25 stores, lays off 1,400 workers across Indonesia as losses narrow

Indonesia’s largest KFC franchise operator, PT Fast Food Indonesia, has moved deeper into a phase of operational consolidation, closing 25 outlets in 2025 as part of a broader restructuring effort aimed at stabilising its finances and improving efficiency.

According to the company’s latest financial disclosures, the total number of KFC restaurants in Indonesia fell from 715 to 690 by the end of December 2025, marking a strategic pullback from underperforming locations and a sharper focus on high-performing urban markets.

The contraction was accompanied by a significant reduction in headcount. The company’s workforce declined from 13,106 employees in 2024 to 11,664 in 2025, a drop of 1,442 jobs, underscoring continued pressure on labour optimisation across the quick-service restaurant sector.

Despite the shrinkage in both footprint and workforce, the company showed signs of financial recovery. Net loss narrowed sharply to 366 billion rupiah in 2025, improving 54% from 796.9 billion rupiah a year earlier. Revenue, meanwhile, remained broadly stable at 4.88 trillion rupiah, slightly higher than 4.87 trillion rupiah in 2024, suggesting stronger per-store productivity.

The balance sheet also expanded, with total assets rising to 4.9 trillion rupiah from 3.5 trillion rupiah previously. However, liabilities remained elevated at 4.5 trillion rupiah, leaving equity at just 435 billion rupiah, a structure that continues to weigh on investor sentiment.

Market reaction reflected that caution. Shares of FAST closed 2.26% lower at 346 rupiah following the announcement.

The company has framed the closures as part of a long-term strategy to strengthen operational resilience amid rising costs, shifting consumer behaviour, and intensifying competition in Indonesia’s fast-food market. Industry analysts note that the approach signals a pivot toward “leaner growth”, where profitability per outlet is prioritised over aggressive expansion.

The latest round of restructuring follows a similar pattern seen in previous periods, including earlier closures and workforce reductions during 2024–2025, as the company grappled with prolonged losses and uneven recovery in demand. Broader headwinds, including cost inflation and past reputational pressures linked to consumer boycotts, have also shaped the company’s recent performance trajectory.

Even so, the relatively stable revenue base suggests that brand demand remains intact. The challenge ahead lies in converting that demand into sustainable profitability while managing debt levels and adapting to a more digitally driven, delivery-focused food economy.

As Indonesia’s middle class continues to expand, PT Fast Food Indonesia’s turnaround will likely depend on how effectively it balances cost discipline with innovation across its remaining 690 outlets.