Jakarta, CNBC Indonesia – The manager of the KFC fried chicken outlet PT Fast Food Indonesia Tbk (FAST) was bleeding financially until mid-2020 as a result of the Covid-19 pandemic. At the same time the KFC outlets shrank and the number of employees decreased.
In its official report quoted on Friday (27/11), until June 30, 2020, KFC only has 16,830 permanent employees, has experienced a reduction of 138 permanent employees, from the position at the end of 2019 where there were still 16,968 permanent employees.
Meanwhile, the number of outlets also decreased by 11 outlets in just 6 months, or an average of 2 outlets closed every month. As of June 30, 2020, there were only 737 restaurant outlets, even though at the end of last year there were 748 restaurant outlets.
The company has suffered net losses this year due to the Large-Scale Social Restrictions (PSBB) policy to reduce the spread of covid-19. Until the end of June 2020, the company’s net loss was recorded at Rp. 153.82 billion.
This performance was much worse than that of the same period the previous year which was still positive at Rp 157.52 billion.
This loss was due to the decrease in the company’s annual revenue (year in year / YoY) by 25.40% to Ro 2.51 trillion from the previous Rp 3.37 trillion at the end of the third quarter of last year.
This decline in income led to a decrease in cost of goods sold to Rp 1.02 trillion from Rp 1.25 trillion in the previous year. There was also a decrease in sales and distribution expenses to Rp 1.39 trillion from Rp 1.65 trillion.
However, general and administrative expenses slightly increased to Rp 289.11 billion, from Rp 288.25 billion.
KFC has indeed recently become a byword, related to laying off workers, cutting wages, delaying the employees’ THR.
KFC employees experienced wage delays in April by up to 50%. Some were delayed in the range of 30%, depending on the grade of the employee. Salaries of employees at that time had to be cut due to the impact of the Covid-19 pandemic.
More than six months after the policy was adopted, wage payments which were previously postponed were only paid later this month.
Coordinator of Solidarity for Indonesian Workers Struggle (SPBI), Anthony Matondang, revealed that the amount would also be cut back.
“Ironically, 50% is cut. So 50% is returned. The hold is still running. Say Rp. 1.2 million was held, Rp. 600 thousand was returned. But it is still being deducted. It doesn’t taste at all,” said Anthony to CNBC Indonesia, Monday (9/11/2020).
However, management raised their voices against the news that the company would not pay salaries for employees who had been in arrears. The company denied the news.
FAST Director Justinus Dalimin Juwono said the company will fulfill all obligations to its employees, including wages.
“It is not true, everything that is held will be paid on time! If 50% is paid, the other 50% will definitely be paid !,” Justinus told CNBC Indonesia, Tuesday (10/11/2020).
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