JAKARTA - The operation of the Texas Chicken restaurant in Indonesia officially ended along with the termination of the franchise cooperation between PT Cipta Rasa Murni Tbk (CSMI) and Cajun Global LLC. Pure Taste Creation has reportedly closed all restaurants in operation.
Citing the information disclosure of the Indonesia Stock Exchange (IDX), Thursday, August 17, CSMI management said the termination of franchise cooperation with Cajun Global LLC had ended on March 14, 2023. In line with the end of the agreement, the process of closing the Texas Chicken restaurant has been going on since February 28, 2023.
"The closing process has been in February 28, 2023, where CSMI can no longer use the Texas Chicken brand," wrote Director of Pure Taste Creation Radino Miharjo.
Radino explained that CSMI received relief in the form of eliminating royalty debt and an initial fee from Cajun as the license holder. Citing CSMI's financial report as of June 30, 2023, the cancellation of the franchise cooperation contains conditions that require CSMI to close all operations of Texas Chicken restaurants in Indonesia.
In addition, CSMI is also required to lower the Texas Chicken logo in each restaurant. Cajun will then remove all bills that include royalties, international marketing costs and other bills that reach 361,587 US dollars.
Radino further said that CSMI had experienced financial difficulties since the Covid-19 pandemic, resulting in a decrease in turnover until the end of 2021. As a result, CSMI was unable to carry out corporate actions such as opening new restaurants.
"We have also tried to present a new menu, namely the international menu, but this cannot increase sales because it is still in a pandemic condition," he explained.
He continued that all restaurants had been closed and CSMI had completed all restaurant closures in accordance with the approval of the mall manager.
For information, CSMI's revenue as of June 2023 amounted to Rp1.78 billion with a loss of Rp4.04 billion. CSMI shares themselves have been suspended by the IDX since July 2022 and will reach 24 months on July 18, 2024.
As is known, CSMI's share trading was terminated in July 2022 because the company had not paid annual recording fees. On the other hand, CSMI is also a company experiencing conditions, or events, which significantly negatively affects business continuity, either financially or legally.
The company also cannot show any indication of recovery. The company, which officially took the floor on April 9, 2020, reported sales of IDR 77.32 billion in 2020, down significantly from 2019 which reached IDR 202.24 billion.
The decline in CSMI sales was followed by a swelled loss. They reported a loss of IDR 38.78 in 2020, greater than IDR 11.41 billion in 2019.
Pure Taste Creation performance has not shown any improvement in 2021. Their sales fell again to Rp61.50 billion, while a net loss of Rp13.3 billion. In 2022, CSMI's sales fell again to Rp51.67 billion and lost Rp8.62 billion.
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