KAI to expand restaurant business

JAKARTA. PT Reska Multi Usaha, a subsidiary of state-owned train operator PT Kereta Api Indonesia (KAI), hopes to expand its restaurant business through new restaurant outlets that are expected to boost the sector’s contribution to the company’s overall revenue.

Currently, the company manages four restaurants, having recently opened new outlets at Gubeng Station in Surabaya, East Java, and Tugu Station in Yogyakarta in the first half of the year.

Its fifth restaurant is expected to open in the second half of this year. “We want to open a new restaurant on Jl. Bengawan near Bandung Station in West Java,” Reska spokesman Suyono Syam said as quoted by kontan.co.id on Monday.

The firm expected that the expansion would increase revenue from its restaurant and catering businesses to Rp 55.45 billion (US$4.71 million) this year, from Rp 48.55 billion last year. “We were able to boost our daily revenue from Rp 204 million to Rp 230 million last month, especially during the Idul Fitri holiday,” Suyono said, adding that reviewing menus and adding more traditional dishes at cheaper prices had helped in boosting the daily revenue.

Reska expected that its restaurants would be able to contribute Rp 60.78 billion, or 21.63 percent, to its consolidated revenue target of Rp 281 billion this year, which increased 32 percent compared to Rp 212 billion last year. In 2013, the company’s restaurants contributed Rp 56.39 billion to its total revenue.

The company secured Rp 28 billion in capital from its holding company, PT KAI, in the second half of 2014 to upgrade its kitchens, restaurants and parking lots.