CSMI Ends Partnership with Cajun Global and Closes Texas Chicken Restaurants in Indonesia

KOMPAS.com – PT Cipta Selera Murni Tbk (CSMI) announced that as of March 14, 2023 the company has decided to end its partnership with Cajun Global LLC and reported that it has closed all Texas Chicken restaurants it operates under it (Texas Chicken is closed).

In Indonesia, the Texas Chicken franchise can be said to be unable to compete with competitors such as KFC and McDonald’s. The competition is getting fiercer because in Indonesia at this time many local franchises are also popping up which also serve the main menu of fried chicken.

For information only, Texas Chicken is a franchise from the United States. In fact, in its home country, this restaurant is called Church’s Chicken, taken from the name of its founder, George Church.

Cipta Selera Murni is actually not the sole holder of the Texas Chicken franchise, but is also held by PT Quick Serve Indonesia.

Also read: CSMI Closes All Texas Chicken Outlets in RI Due to Continued Losses

Owner of Texas Chicken in Indonesia

Quoting KONTAN, Cipta Selera Murni or CSMI, which holds the Texas Chicken franchise, was founded by the late Atang Latief. He is a national businessman who triumphed in the New Order era.

Atang Latief is also the owner of Bank Bira which was involved in the Bank Indonesia Liquidity Assistance (BLBI) corruption case.

When the case of the pursuit of several BLBI obligors emerged in 2006, the name Cipta Selera Murni was highlighted because Atang Latief promised a refund of BLBI funds through the seller of his assets, one of which was by selling the company holding the Texas Chicken franchise.

Atang Latief founded CSMI together with the late Herlia Emmy Yani Subronto Laras who was none other than the son of the late Revolutionary Hero General Ahmad Yani.

Also read: Listen, this is the history of KFC’s entry into Indonesia

Referring to information from the Indonesia Stock Exchange, Atang Latief once held 70 percent of CSMI shares. The remaining 30 percent is divided equally by three people with 10 percent each, namely Emmy, Hediana Luwina and Tjen Mie Lian.

After he died, Atang Latief’s shares in CSMI were then passed on to his children. Namely Lisa Muchtar as much as 72.5 percent and Husni Muchtar 27.5 percent.

Then in 2020, Cipta Selera Murni listed its shares on the Indonesia Stock Exchange. The capital obtained from the sale of shares to the public is then used to open new outlets, especially outside Java.

Texas Chicken closing announcement

Previously, it was reported that the Director of CSMI, Radino Miharjo, said that the company was forced to terminate cooperation with the principal Cajun Global because the sales turnover could not cover operational costs. This causes the company to lose money.

Also read: Who Really Owns KFC?

“On March 14, 2023 the company decided to cooperate with Cajun Global LLC and the closing process began on February 28, 2023 where the company could no longer use the Texas Chicken brand,” said Radino as quoted from the Indonesia Stock Exchange’s Disclosure of Information.

According to Radino, with the cancellation of this franchise agreement, Cajun as the principal provided relief to the company in the form of writing off royalty debt and initial fees.

“The company has experienced financial difficulties since the Covid-19 pandemic so that there is a decrease in turnover or income until the end of 2021, even in 2022 the company cannot carry out planning such as opening a new restaurant,” he explained.

According to Radino, seeing the unstable financial condition due to the turnover that was not achieved, the company actually did not remain silent and had carried out various business strategies.

Also read: Hit by Corona, KFC Indonesia was forced to close 33 outlets

He said the Covid-19 pandemic which broke out a few years ago made CSMI’s condition even worse. Chain restaurant outlets were forced to close.

“The company has also tried to present new menus, namely international menus, however, it cannot increase sales because it is still in a pandemic,” said Radino.

“Currently all restaurants have been closed and the company has completed all restaurant closures according to the approval of the mall management,” he added.

He explained, the company’s current financial performance still posted revenue of IDR 1,786,983,771. However, operating expenses were still higher, so the company suffered a loss of Rp 4,040,618,346.

This company continues to experience losses. In 2020, CSMI lost IDR 38.78 billion, previously in 2019 it also recorded a loss of IDR 11.41 billion.

Also read: Sales Drop, KFC Indonesia Loses IDR 283 Billion

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2023-08-19 14:23:00
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