Pizza Hut Indonesia Strengthens Operations and Refurbishes 30 Outlets

PT Sarimelati Kencana Tbk (PZZA), the operator of Pizza Hut in Indonesia, is continuing to develop its network by opening new outlets and refurbishing 30 locations across the country. Strengthening its domestic business remains a priority amid a change in Pizza Hut’s global ownership reported by Kontan on 20 October 2026.

Strengthening the Business Remains the Priority in Indonesia

Andromeda H. Trisanto, Sarimelati Kencana’s Corporate Secretary and Investor Relations representative, said the change in Pizza Hut’s global ownership to LongRange Capital had not altered the company’s strategic focus in Indonesia. Its priorities remain strengthening the brand and executing its domestic business strategy.

“The company continues to pursue various initiatives to strengthen the brand, introduce relevant product innovations, improve the customer experience, and optimise operations and business efficiency,” Andromeda told Kontan.

The statement places customer needs and operational execution at the heart of the company’s agenda. Brand development goes hand in hand with product innovation, while improvements to the customer experience are supported by efforts to optimise how outlets operate.

For those interested in Indonesia’s franchise sector, this development illustrates how the operator of a global brand is focusing on domestic market conditions. According to management, the change in brand ownership has not shifted PZZA’s priorities of strengthening sales, service and efficiency in Indonesia.

Refurbishments Complement Network Expansion

PZZA is continuing to open new outlets while refurbishing 30 locations across Indonesia. The company says these measures are intended to extend its market reach, improve service quality and offer customers a better dining experience.

As at 30 June 2026, the company operated 579 outlets: 301 Pizza Hut Restaurant locations and 278 Pizza Hut Delivery outlets. This figure reflects the network at the end of the first half of the year, rather than the number of outlets at the time of the October report.

These two strands of development serve different purposes. New openings extend the company’s reach, while refurbishments focus on improving outlet quality and the customer experience. Both form part of its efforts to develop and optimise its Indonesian network.

PZZA’s plans therefore extend beyond adding locations. Existing outlets are also receiving attention through refurbishment and productivity improvements. This approach aligns with management’s strategy of maintaining sales growth while keeping profitability in view.

Revenue Falls as Profitability Remains in Focus

In the first half of 2026, PZZA recorded revenue of IDR 1.47 trillion. According to Kontan, this was down 4.34% from IDR 1.53 trillion in the same period a year earlier.

Meanwhile, profit for the period attributable to owners of the parent company reached IDR 8.4 billion. These figures present two sides of the company’s performance: sales remained below the comparable period, but the business recorded a profit in the first six months of 2026.

Against a backdrop of shifting consumer purchasing power and increasingly intense restaurant competition, PZZA says it is working to balance sales growth with profitability. Its strategy includes improving outlet productivity, making marketing more effective and consistently implementing operational excellence initiatives.

Andromeda said the company’s positive momentum continued into the third quarter of 2026. This statement reflects management’s assessment of the direction of the business, whereas the financial figures presented in the report cover first-half revenue and profit.

Distinguishing between these reporting periods is important when assessing the company’s progress. The network of 579 outlets, revenue of IDR 1.47 trillion and profit of IDR 8.4 billion describe its position up to the end of June, while management’s comments on the third quarter provide subsequent context.

Year-End Targets and Considerations for 2027

For the full year 2026, PZZA forecasts higher net profit than it achieved in 2025. Management links this forecast to operational excellence initiatives focused on both sales growth and operational efficiency.

The forecast remains a company target, not a realised full-year result. Looking ahead to 2027, PZZA says it will formulate its business strategy based on an assessment of its performance throughout 2026 and subsequent market developments.

Taken together, these measures show that outlet openings and refurbishments form part of a broader operational improvement programme rather than stand-alone expansion plans. Outlet productivity, marketing effectiveness, service quality and efficiency are all among the priorities outlined by management.

Practical takeaway: for those involved in or considering Indonesia’s franchise market, assessing network development should go beyond outlet numbers. Pay attention to productivity, the quality of the customer experience, and the distinction between reported financial results and targets that have yet to be achieved.