Franchise Opportunities amid the Pandemic

Within a short time of the Covid-19 pandemic, a number of foreign franchises have closed their outlets in Indonesia. What is the fate of local franchise companies?

Kompas/Priyombodo

Visitors attend the annual franchise exhibition incorporating the Franchise & License Expo Indonesia (FLEI), the Retail & Solution Expo Indonesia (RSEI), and the Cafe & Brasserie Expo Indonesia (CBI) on 13 Sept. 2019 at Hall B of the Jakarta Convention Center in Central Jakarta. The industry expo offered more than 350 franchise brands and saw visitors from 20 countries.

As one of the ways to conduct business, franchises still have great opportunity for growth in Indonesia despite the Covid-19 pandemic. However, the opportunity is for the having only if investors can learn comprehensively about the business’ positive and negative aspects before starting.

Such preparation is needed because many franchise companies have suffered great losses or have even gone out of business as a result of the Covid-19 pandemic. A number of major franchise companies have closed many of their outlets in the country, including PT Fast Food Indonesia Tbk., the Indonesian franchise holder of the American fast food chain Kentucky Fried Chicken (KFC).