The KFC fast food restaurant chain has closed 115 outlets due to the coronavirus. As a result, 4,988 employees have been laid off, and 4,847 others will be asked to accept salary reductions.
PT Fast Food Indonesia Tbk, which oversees KFC fast food franchise restaurants, closed 115 outlets in various regions across Indonesia due to the coronavirus pandemic. As a result, nearly 10 thousand employees have been affected.
“To date, there are 115 outlets that have been closed because the mall/ plaza (they are located in) has been closed due to the impact of Covid-19 in various cities in Indonesia, not only in Jakarta,” a management letter stated.
Management cites revenue losses of around 25 to 50 percent due to the cessation of the company’s operations for the past three months.
This is reflected in the decrease in total (consolidated) revenue from March 31, 2020 to April 30, 2020 when compared to the same period the previous year.
However, the company ensures it will continue to meet short-term financial obligations, such as account payables and principal bonds to related institutions.
In addition, company management also ensured that the company and its entities did not have the potential to go bankrupt due to the impact of the coronavirus spread.
“The Covid-19 pandemic will not impact legal issues related to the company and/ or its subsidiaries such as a bankruptcy suits,” explained the official letter.
To minimize the company’s losses, the company FAST issuer expects operations to be re-opened, including dine-in with limited capacity in accordance with government directives.
“The company has taken several steps to increase revenue as much as possible by providing affordable menus and expanding the types of services that can be provided to customers,” the letter stated said.