Indonesian Fried Chicken Market Faces Turbulence: Texas Chicken Rebrands Amidst Losses for CSMI and KFC
Jakarta, Indonesia – Indonesia’s fast-food fried chicken sector is undergoing significant shifts, with both Texas Chicken operator CSMI and KFC Indonesia reporting financial challenges and workforce reductions in teh first half of 2025.Thes developments signal a competitive battle for market share in a key Southeast Asian economy.
CSMI, the company behind the Texas Chicken franchise, experienced a dramatic drop in sales, recording IDR 815.83 billion in the first half of 2025, down from IDR 1.45 trillion in the same period of 2024. The company posted a gross profit of IDR 484.96 billion with a cost of goods sold of IDR 330.86 billion. As of June 30, 2025, CSMI reported total liabilities of IDR 51.64 trillion and total equity of IDR 4.59 trillion, with total assets at IDR 56.24 trillion.
Facing these difficulties, CSMI shareholders voted in February 2024 to close all Texas Chicken outlets and rebrand under the name NWS Chicken. Management stated in its financial report that as of June 30, 2025, the company employed 24 contract workers. The rebranding aims for a more flexible product concept adaptable to local consumer preferences, according to a July 24, 2025, public expose material.
Meanwhile, KFC Indonesia, operated by Fast Food, also saw a decline in revenue, decreasing 3.12% to IDR 2.40 trillion in the first half of 2025 from IDR 2.48 trillion the previous year. Despite this,KFC narrowed its losses to IDR 138.75 billion, improving from IDR 348.83 billion in the first half of 2024. Gross profit increased to IDR 1.44 trillion,up from IDR 1.42 trillion in the same period last year.
KFC’s total assets rose to IDR 4.10 trillion in the first half of 2025, while liabilities increased to IDR 3.97 trillion. Total equity was recorded at IDR 129 billion. Though, the company has been forced to streamline operations, closing 19 outlets by september 2025, resulting in the layoff of approximately 400 employees.
“By September 2025 we will have closed 19 outlets. Then, how many employees will be affected by layoffs? We have approximately 400 employees affected by layoffs,” said Fast Food Director Wahyudi Martono during a virtual public Expose event on February 10, 2025.
These developments highlight the intensifying competition within Indonesia’s fried chicken market, as companies adapt to changing consumer tastes and economic pressures.