Texas Chicken Is Destroyed, Losing Billions In 2021 To Cut Employees' Salaries By 50 Percent: Now Only Has 22 Outlets

JAKARTA - The manager of Texas Chicken outlets in Indonesia, PT Cipta Selera Murni Tbk (CSMI) is not in a good condition. The company still suffered losses last year which resulted in cuts in employee salaries and termination of contracts.

Quoted from CSMI's explanation to the Indonesia Stock Exchange (IDX), Monday, April 18, Texas Chicken restaurant cut the salaries of employees at the head office and branches by up to 50 percent. The company also closed several outlets in Jakarta.

Management admits that it has taken a policy towards employees in connection with the COVID-19 pandemic. In addition to cutting salaries, the company has also terminated employee contracts that have expired.

The company stated that it had laid off employees without salaries if the restaurant was closed or did not require staff. And so far, there are only 22 Texas Chicken restaurants, the majority of which are located in North Sumatra, such as Medan and Binjai.

For information, the company has closed all outlets in Jakarta. Texas Chicken's total sales have consistently declined.

Citing CSMI's financial report as of the third quarter of 2021, the company still posted a loss for the year of IDR 18.77 billion. Texas Chicken's sales of IDR 45.83 billion in the third quarter of 2021 were not able to help the company's performance much.

The reason is, the company's cost of goods sold in the third quarter of 2021 was recorded at IDR 20.57 billion. Then operating expenses amounted to IDR 41.54 billion, other expenses IDR 2.20 billion, and income tax expenses IDR 280.41 million.

As for the details, CSMI recorded sales of IDR 6.52 billion in January 2021. Then it was corrected to IDR 2.24 billion in August 2021.

The company scored a sales recovery in January 2022 to the position of IDR 5.88 billion. This depressed the company's cash to IDR 8.4 billion or only 7.43 percent of total assets.

Management recognizes the small amount of cash caused by the purchase of inventories and operational payments. Even though the company had projected a net profit of IDR 10.7 billion in 2021.

"Mall managers can't renegotiate or give discounts because there's not enough visitors. In addition, the sales and general administrative expenses are permanent and cannot be met from existing sales," explained Texas Chicken's management.