Key insights and market outlook
PT Cipta Selera Murni Tbk (CSMI) is discontinuing Texas Chicken operations and launching NWS Chicken as its new brand. The decision comes due to stringent operational requirements and high compliance costs associated with the Texas Chicken franchise agreement. The rebranding aims to give the company more flexibility in managing its business operations.
PT Cipta Selera Murni Tbk (CSMI), the operator of Texas Chicken in Indonesia, has decided to discontinue the brand and introduce NWS Chicken as its new culinary brand. According to Radino Miharjo, the company's CEO, this strategic decision was made following a thorough business evaluation.
The decision to rebrand was driven by the stringent requirements imposed by the franchisor based in Atlanta, Georgia. These included maintaining specific operational standards, financial obligations, and other compliance requirements that were deemed too burdensome by the company. The agreement required CSMI to fulfill these obligations fully, which ultimately led to the decision to transition away from the Texas Chicken brand.
The rebranding to NWS Chicken is expected to provide CSMI with greater flexibility in managing its business operations. By moving away from the restrictive franchise agreement, the company aims to optimize its resources and potentially expand its market reach through the new brand identity.
The introduction of NWS Chicken represents a significant shift in CSMI's business strategy. While the company is discontinuing its association with Texas Chicken, it remains committed to the quick-service restaurant sector. The success of NWS Chicken will be crucial in determining the company's future performance in this competitive market.
Brand Rebranding
Franchise Agreement Termination