MARKET ACCESS SECRETARIAT
Global Analysis Report
Foodservice Profile
Indonesia
July 2014
EXECUTIVE SUMMARY
CONTENTS
Indonesia continues to offer great opportunities for Canadian
suppliers of agricultural and agri-food products to the foodservice
sector. In 2012, the Indonesian consumer foodservice market
recorded healthy sales of almost US$39 billion.
Executive Summary........................ 1
Indonesia weathered the 2008 global financial crisis relatively well
because of its heavy reliance on domestic consumption as the
driver of economic growth. The Indonesian economy grew 6.2% in
2012 and is forecast to continue growing (the World Bank, 2014).
The stable economy has led to rising disposable incomes, which
have increased the purchasing power of consumers at foodservice
outlets. An increase in the country’s eating-out culture among
younger demographics and middle- to upper-income segments, has
also helped boost demand for foodservices.
The most popular foodservice subsectors in Indonesia are
full-service restaurants and street stalls/kiosks. The foodservice
sector continues to grow with outlet expansion, increased
promotional activities, and new menu items. Foodservice operators
are taking advantage of social media tools to promote their brands,
especially to young people. Operators are also looking beyond big
cities and moving into smaller ones to grow their businesses. Fast
food chains lead the way in expanding the number of foodservice
outlets, with KFC and McDonald’s being the main players.
While most foodservice operators are found in standalone locations,
expansion into non-standalone locations, such as shopping malls,
office buildings, and schools/campuses, will further grow the
foodservice market.
Sector Overview ............................. 2
Subsectors ...................................... 4
Locations ........................................ 8
Top Companies .............................. 9
Conclusion .................................... 10
Resources..................................... 10
SECTOR OVERVIEW
Indonesia’s consumer foodservice market recorded healthy sales and steady growth in recent years. As
shown in the tables below, Indonesia’s foodservice sector was valued at just under US$39 billion in 2012.
Between 2008 and 2012, the market recorded a compound annual growth rate (CAGR) of 7.5% and is
expected to continue expanding with a CAGR of 9.1% to 2017, reaching total sales of US$60 billion. The
resilience of the Indonesian economy has resulted in rising disposable incomes, increasing the overall
purchasing power of consumers. Together with a culture that values eating out, and growing
demographics of busy consumers seeking convenient meal options, this trend has bolstered demand for
foodservice offerings.
Although independent foodservice outlets still occupy the majority of the market, Indonesia has seen
many foreign food brands and chained companies enter and expand throughout the country. Major
chained foodservice players in Indonesia include KFC and McDonald’s. Foodservice operators are
looking beyond major cities and expanding into smaller cities where there are fewer competitors and
operating costs are lower. Operators are also taking advantage of social media tools to promote their
brands, especially to young people.
In 2012, a new development in the foodservice industry was the Indonesian government implementing
new franchise regulations to protect local operators. According to the Indonesian Franchise Association
(IFA), foreign franchises have been growing more rapidly than local brands in recent years. As a result,
the Indonesian government attempted to regulate the franchise business in the country in order to protect
local small-to-medium size businesses.
Major challenges that may limit the growth of the foodservice market include fuel price hikes, rising
commodity prices, and increases in real estate prices. While middle- to upper-income consumers will not
significantly change their consumption levels at foodservice outlets, these factors will affect the
purchasing power of low- to middle-income consumers.
Foodservice subsectors consist of full-service restaurants, fast food, cafés/bars, street stalls/kiosks,
self-service cafeterias, and 100% home delivery/takeaway. As shown in the table below, full-service
restaurants was the dominant subsector in 2012, representing over 82% of the total market. However, the
fastest-growing subsector was 100% home delivery/takeaway, which increased its sales by a significant
CAGR of 132% over the 2008 to 2012 period, albeit from a very low base.
Historic Market Value and Growth of Indonesian Foodservice by Subsector, US$ millions
2008
Consumer Foodservice
100% Home Delivery/Takeaway
Cafés/Bars
Full-Service Restaurants
Fast Food
Self-Service Cafeterias
Street Stalls/Kiosks
Pizza Consumer Foodservice**
29,219.4
0.5
2,764.9
24,075.6
1,052.1
157.7
1,168.7
268.5
2009
31,079.5
1.2
2,982.3
25,566.9
1,145.7
166.0
1,217.3
297.6
2010
33,370.7
3.5
3,209.5
27,406.6
1,294.9
177.1
1,279.2
335.5
2011
35,958.5
9.1
3,483.0
29,491.1
1,435.9
191.0
1,348.5
364.7
2012
38,956.9
14.8
3,806.8
31,894.4
1,606.7
208.1
1,426.1
404.1
CAGR %
2008-12
7.5
132.2
8.3
7.3
11.2
7.2
5.1
10.8
Source: Euromonitor, 2014.
CAGR = compound annual growth rate.
Note **Pizza consumer foodservice data is compiled from three different subsectors (fast food, full-service restaurants, and 100%
home delivery/takeaway) for the purposes of comparison, but remains reflected within the figures for these subsectors, and thus the
consumer foodservice total. As such, pizza is not counted as its own sector within the consumer foodservice total.
Page | 2
Forecast Market Value and Growth of Indonesian Foodservice by Subsector, US$ millions
2013
Consumer Foodservice
100% Home Delivery/Takeaway
Cafés/Bars
Full-Service Restaurants
Fast Food
Self-Service Cafeterias
Street Stalls/Kiosks
Pizza Consumer Foodservice**
2014
42,029.7
21.2
4,123.2
34,357.0
1,794.0
226.3
1,508.0
446.2
2015
45,562.7
28.2
4,478.2
37,203.7
2,005.9
246.7
1,600.0
495.6
49,580.8
35.9
4,875.7
40,453.6
2,242.6
269.6
1,703.3
554.0
2016
54,174.9
43.9
5,319.4
44,189.5
2,508.0
295.0
1,819.1
621.4
2017
59,502.6
51.4
5,825.2
48,540.1
2,809.6
323.9
1,952.5
699.5
CAGR %
2013-17
9.1
24.8
9.0
9.0
11.9
9.4
6.7
11.9
Source: Euromonitor, 2014.
CAGR = compound annual growth rate.
Note **Pizza consumer foodservice data is compiled from three different subsectors (fast food, full-service restaurants, and 100%
home delivery/takeaway) for the purposes of comparison, but remains reflected within the figures for these subsectors, and thus the
consumer foodservice total. As such, pizza is not counted as its own sector within the consumer foodservice total.
As shown in the table below, the Indonesian foodservice sector had 203,253 outlets in 2012 and recorded
more than 5.8 billion transactions. By subsector, full-service restaurants had the most outlets and
transactions, followed by street stalls/kiosks. Full-service restaurants had average sales of US$317,382
per outlet in 2012, with an average transaction value of US$8.28. In comparison, a typical street
stall/kiosk outlet saw average sales of US$15,331 in 2012, with a modest US$1.01 per transaction.
Cafés/bars recorded the highest average sales per outlet at US$977,105 and the highest average sales
per transaction at US$16.49. Pizza foodservice recorded the second highest average sales per outlet
(US$708,947) and the second highest average sales per transaction (US$14.54), reflecting pizza’s newly
found popularity in the country.
Outlets and Transactions of Indonesian Foodservice by Subsector, 2012
Subsector
Consumer Foodservice
100% Home Delivery/Takeaway
Cafés/Bars
Full-Service Restaurants
Fast Food
Self-Service Cafeterias
Street Stalls/Kiosks
Pizza Consumer Foodservice**
Outlets
203,253
120
3,896
100,492
5,202
522
93,021
570
Transactions
(thousands)
5,877,052.8
1,124.7
230,908.2
3,850,887.2
326,658.8
54,211.9
1,413,262.0
27,796.4
Average Sales Average Sales
per Outlet
per Transaction
($US)
($US)
191,667
6.63
123,333
13.16
977,105
16.49
317,382
8.28
308,862
4.92
398,659
3.84
15,331
1.01
708,947
14.54
Source: Euromonitor, 2014.
Note**Pizza consumer foodservice data is compiled from three different subsectors (fast food, full-service restaurants, and 100%
home delivery/takeaway) for the purposes of comparison, but remains reflected within the figures for these subsectors, and thus the
consumer foodservice total. As such, pizza is not counted as its own sector within the consumer foodservice total.
Independent operators are the prevalent type of foodservice providers in Indonesia, accounting for over
US$36 billion in sales, or 92% of the total foodservice market in 2012. Chained operators, however, are
expanding their sales presence in Indonesia at a faster rate than their independent counterparts,
registering a CAGR of 12.1% from 2008 to 2012. Chained operators are expected to continue gaining
market share with a CAGR of 13.1% over the forecast period, to reach sales of US$5.3 billion in 2017.
Page | 3
Historic Market Value and Growth of Indonesian Foodservice by Type, US$ millions
Total Consumer Foodservice
Chained
Independent
Source: Euromonitor, 2014.
2008
2009
2010
2011
2012
29,219.4
1,819.0
27,400.5
31,079.5
2,012.2
29,067.3
33,370.7
2,284.7
31,086.0
35,958.5
2,542.7
33,415.8
38,956.9
2,868.8
36,088.1
CAGR %
2008-12
7.5
12.1
7.1
CAGR = compound annual growth rate.
Forecast Market Value and Growth of Indonesian Foodservice by Type, US$ millions
Total Consumer Foodservice
Chained
Independent
Source: Euromonitor, 2014.
2013
2014
2015
2016
2017
42,029.7
3,233.3
38,796.5
45,562.7
3,650.5
41,912.1
49,580.8
4,124.2
45,456.6
54,174.9
4,663.0
49,511.9
59,502.6
5,281.2
54,221.4
CAGR %
2013-17
9.1
13.1
8.7
CAGR = compound annual growth rate.
Independent operators accounted for 188,626 outlets and almost 5.3 billion transactions in 2012.
Independent and chained operators had fairly similar sales per outlet, each at just under US$200,000 in
the same year. However, independent operators commanded higher sales per transaction.
Outlets and Transactions of Indonesian Foodservice by Type, 2012
Subsector
Consumer Foodservice
Chained
Independent
Outlets
203,253
14,627
188,626
Average Sales Average Sales
per Outlet
per Transaction
($US)
($US)
5,877,052.8
191,667
6.63
585,932.6
196,130
4.90
5,291,120.2
191,321
6.82
Transactions
(thousands)
Source: Euromonitor, 2014.
SUBSECTORS
*The information in this section was sourced from Euromonitor, 2013 and 2014. Please see the resources at the end
of this report for a complete list of documents consulted.
Full-Service Restaurants
Full-service restaurants are the most familiar foodservice format to Indonesians (aside from street
stalls/kiosks) and were introduced into the market long before the arrival of fast food and cafés/bars. This
subsector saw a value growth of over 8% in 2012 to reach sales of almost US$32 billion, with a total of
100,492 outlets.
Independent full-service restaurants dominated in outlet numbers, transaction volume and value sales of
this subsector, compared to chained establishments. Rumah Makan Padang is a major player in the
independent category, while Pizza Hut dominated the chained full-service category and is the only
full-service pizza brand. Pizza Hut owes much of its success to its first-mover advantage, menu
innovation, aggressive outlet expansion into smaller cities, investments in mass media, and promotional
offerings.
Page | 4
Asian food is the most common among full-service restaurants in terms of outlet numbers, transactions
volume and value sales, representing 83% of the subsector by value. North American dishes or pizza are
also popular among casual dining full-service restaurants. The leading chained operators for casual
dining include Pizza Hut, Planet Hollywood, Papa Ron’s, Hard Rock Café and Sizzler. These International
chains are typically located in major cities and are popular among middle- to upper-income consumers.
Competition within the full-service restaurant subsector is strong and will continue to intensify. The
maturity of the market, price increases, and decreased spending from the middle- to low-income groups
will affect growth. Full-service restaurant operators, especially chained, will look to boost sales and
maintain growth by targeting middle- to upper-income consumers who have greater spending power.
Strategies include introducing more sophisticated dishes, incorporating healthier ingredients, and
revamping outlet designs. Other strategies include developing affordable set menus, co-branding to offer
discounts, expanding into smaller cities, and offering other perks, such as free WIFI and play areas for
children to attract families.
Cafés/Bars
Cafés/bars are gaining in popularity among young people, middle- to upper-income consumers, and
business people, recording a CAGR of 8.3% in sales to reach over US$3.8 billion in 2012, and 3,896
outlets. The cafés/bars subsector is still dominated by independent operators, although chained
cafés/bars, particularly international brands, have seen their share of outlets increase due to the growth in
speciality coffee shops.
Two global brands, Starbucks and The Coffee Bean & Tea Leaf, dominated the chained speciality coffee
shops category. Excelso Café, a local brand, was the third-largest brand in the country. These three
brands had a combined value share of around 74% of total chained speciality coffee shops in 2011. With
the café culture developing in the country, international and local chained coffee shops and franchises are
increasing in popularity and expanding the number of outlets, especially in bigger cities. Unlike Starbucks
and The Coffee Bean & Tea Leaf, which are found mainly in major cities, Excelso Café is also established
in smaller cities. It offers lower prices and is therefore able to reach a wider consumer base.
In 2012, another global brand that posted significant value growth was Black Canyon, a specialist coffee
shop from Thailand. It expanded rapidly in new outlet openings in 2012, especially in smaller cities in
Java, such as Solo. During 2012, several leading brands including Starbucks, Excelso Café and Black
Canyon, invested heavily in new menu launches (especially non-coffee menud) in order to boost
transactions by attracting more consumers.
Cafés/bars face indirect competition from other types of consumer foodservice, such as fast food bakery
products. For example, fast food bakery brand J Co Donuts & Coffee achieved major success when it
introduced various types of coffee and other drinks to complement doughnuts. Dunkin’ Donuts may
introduce various coffee-based drinks to the Indonesian market, thus posing a potential threat to
cafés/bars.
In 2012, eat-in accounted for almost 98% of sales in this subsector, mainly because consumers treat
cafés/bars as a place to relax and spend time with friends and family. Moreover, cafés/bars are
increasingly visited for business meetings. The takeaway concept, such as drive-thru, has not gained
significant traction in the country. While drinks make up the bulk of sales, many outlets are introducing
more food items, and offering free WIFI access, live music and other live entertainment to encourage
customers to spend more time and money at their outlets. Another strategy employed by cafés/bars
operators to increase value sales is to localize their menu with items like fruit-flavoured coffee. Other
efforts include offering promotions, such as “ladies’ nights” and “happy hour” discounts, and co-branding
with credit card companies to offer rewards.
Page | 5
Although coffee shops dominate the café/bars subsector, teahouses are also seeing increased value
growth and expansion. Teahouses are mainly found in bigger cities and target health-conscious
consumers by emphasizing the health attributes of tea. Prominent brands include Tea Addict, Taste Tea
and Travel Café.
Fast Food
In Indonesia, international brands dominate the fast food market and benefit from greater brand
recognition, larger promotional budgets, a higher number of outlets, and first-mover advantage in many
areas. Major international players include KFC, Dunkin’ Donuts, McDonald’s and Baskin-Robbins. Food,
as opposed to beverages, makes up 90% of total fast food sales. Eat-in accounts for approximately 75%
of sales in 2012, although takeaway and home delivery is growing to meet the demands of busy young
professionals and consumers who value quick, cheap and convenient-to-access food.
Asian fast food is especially popular in Indonesia. Local chained Asian fast food can be found in more
locations and smaller cities as local franchise costs are less expensive. Bakery fast food and ice cream
fast food are two emerging categories that are rising in popularity. These categories mainly target middleto upper-income consumers. Fast casual dining is another emerging category that saw steady growth.
This concept emphasizes quick table service in a comfortable atmosphere and attracts the growing
number of middle- to upper-income consumers with busy lifestyles.
Increased health consciousness, especially among the urban population, is challenging the growth of the
fast food subsector, since food in these outlets tends to be less healthy and high in fat, sugar or salt.
Many chains are developing new and innovative offerings that suit Indonesian tastes in order to maintain
growth. Offering affordable packaged meals, discounts and promotional giveaways will also attract
customers.
The total number of fast food outlets in Indonesia was 5,202 in 2012. While still growing, the pace of
growth has slowed down. Most operators are choosing to expand their outlets through company-owned
stores rather than increasing the number of franchisees to maintain service and product quality. Newer
chained fast food players are looking to expand into smaller cities, further increasing competition in this
subsector.
Street Stalls/Kiosks
Street stalls/kiosks are one of the most common consumer foodservice formats in Indonesia. They
normally offer limited menus with lower prices. An outlet can be set up virtually anywhere in the country,
including in small towns and villages, because it can be as small as a bicycle/motorbike’s carriage.
Thanks to their convenient locations, affordability, and practicality, street stalls/kiosks attract consumers
from all income groups.
Street stalls/kiosks enjoyed healthy growth in recent years partially because they serve a wide range of
traditional regional cuisines. The local government’s support of regional culinary tourism also boosted the
growth of street stalls/kiosks. In 2012, independent street stalls/kiosks continued to dominate value sales,
units/outlets and transactions within the subsector. The chained format is a relatively newer concept, but
is growing at a faster pace.
The street stalls/kiosks subsector was valued at US$1.4 billion in 2012, having grown at a CAGR of 5.1%
between 2008 and 2012. Growth is expected to accelerate just slightly over the forecast period of 20132017, with an expected CAGR of 6.7%. In 2012, there were 93,021 street stalls/kiosks with total
transactions exceeding 1.4 billion in Indonesia. The average street stall/kiosk earned US$15,331 in 2012,
or just US$1 per transaction, the lowest among all subsectors.
Page | 6
Indonesian consumers’ rising health awareness is a potential threat to street stalls/kiosks as the hygiene
standard of street food is perceived as poor. However, street stalls/kiosks in modern store types located
in upscale shopping malls have the potential to perform well. The growing consumer health
consciousness will also fuel demand for healthy drinks offered by such outlets.
Self-Service Cafeterias
Self-service cafeterias are not particularly popular in Indonesia and face competition from other
foodservice outlets. They are often located in offices, school campuses, and shopping malls, but are also
being established inside modern retailers, such as supermarkets/hypermarkets. Self-service cafeterias
offer a wide range of dishes prepared in advance and sold at relatively low prices. These characteristics
appeal to certain populations, such as students, who are seeking fast and affordable meals with the
flexibility to choose meal sizes. Office workers and shoppers at supermarkets/hypermarkets are also key
patrons of self-service cafeterias.
Eat-in accounted for 71% of value sales within the self-service cafeterias subsector in 2012, but takeaway
has seen its value share grow. The takeaway option is increasingly popular due to busier lifestyles. Most
self-service cafeterias were dominated by food purchases, which accounted for 74% of value sales in
2012. Consumers prefer to purchase drinks at nearby street stalls/kiosks, which are even cheaper.
The majority of self-service cafeterias in Indonesia are independent and owned by domestic companies.
Carrefour is the only multinational brand. Carrefour’s self-service cafeterias, often called Carrefour Snack
Corner, offer sit-down areas and an extensive food and beverage menu, as well as takeaway services. In
2012, Carrefour remained the most notable brand in chained self-service cafeterias.
The majority of consumers visiting self-service cafeterias are in the low- to middle-income groups.
Therefore, many foodservice operators prefer to establish other types of foodservice outlets, such as
full-service restaurants or fast food. As a result, outlet growth of self-service cafeterias was stagnant in
2012. As cafés/bars, full-service restaurants and fast food outlets continue to dominate consumer
foodservice in the near future, it is unlikely that self-service cafeterias will see any significant growth or
expansion.
100% Home Delivery/Takeaway
The 100% home delivery/takeaway format of foodservice started in Jakarta in 2007, and has been
growing rapidly since. This subsector saw outlet growth of 60% in 2012 alone. The growth can be
attributed to the increasingly busy lifestyles of urban consumers, characterized by more women in the
workplace, working more overtime hours, and busy student life.
By 2012, pizza remained the main contributor to sales in this subsector. Pizza Hut Express and Domino’s
Pizza have recently entered the Indonesian market and are expanding rapidly. Food contributed more
than 94% of value sales within 100% home delivery/takeaway in 2012 as drink items were not frequently
ordered. Both Pizza Hut Express and Domino’s Pizza are adding new items to their menu. With a market
share of 77% in 2012, Pizza Hut Express is a clear leader in the 100% home delivery/takeaway subsector
in Indonesia, due to its first mover advantage and rapid outlet expansion.
As a relatively new and popular choice, 100% home delivery/takeaway is predicted to grow in the near
future, at an estimated CAGR of 24.8% over the forecast period of 2013 to 2017. However, because of
the lack of customer familiarity and transportation constraints in rural Indonesia, the 100% home
delivery/takeaway subsector is likely to remain limited to major cities. Other full-service or fast food
brands, such as McDonald’s and KFC, may also start offering takeaway or home delivery services,
creating competition.
Page | 7
LOCATIONS
Standalone locations accounted for 51% of the total number of consumer foodservice outlets and 53% of
value sales in 2012. Most standalone locations are held by independent foodservice brands. Chained
foodservice operators are mainly found in non-standalone locations, such as shopping malls, grocery
retail outlets, offices, campuses, hospitals and apartments. However, leading chained operators, such as
KFC and McDonald’s, are actively expanding into standalone locations.
The growing number of shopping malls, leisure places, and fuel stations has helped boost the growth of
non-standalone foodservice outlets. Travel locations (such as fuel stations) saw the fastest outlet growth,
reaching 18,027 outlets in 2012.
Towards 2012, more foodservice operators were opening new outlets in diverse locations in order to
attract more consumers and increase value sales. For example, many street stall/kiosk operators, such as
Edam Burger and Red Crispy, opened new outlets in school/campus areas to target students, and in
convenience stores to attract shoppers. Meanwhile, fast food operators, such as the major players KFC
and McDonald’s, focused on outlet expansion in standalone locations, which offer greater space than
retail locations, allowing these chains to operate many facilities including children’s playgrounds and
music corners.
Historic Market Value and Growth of Indonesian Foodservice by Location, US$ Millions
Consumer Foodservice
Standalone
Leisure
Retail
Lodging
Travel
Source: Euromonitor, 2013.
2008
2009
2010
2011
2012
29,219.4
15,225.5
986.7
10,638.0
1,247.1
1,122.1
31,079.5
16,342.6
1,041.7
11,256.2
1,234.6
1,204.4
33,370.7
17,579.1
1,111.5
12,037.3
1,335.1
1,307.8
35,958.5
19,060.5
1,184.1
12,860.1
1,440.6
1,413.1
38,956.9
20,775.9
1,267.4
13,818.1
1,559.6
1,535.8
CAGR %
2008-12
7.5
8.1
6.5
6.8
5.7
8.2
CAGR = compound annual growth rate.
Forecast Market Value and Growth of Indonesian Foodservice by Location, US$ Millions
Consumer Foodservice
Standalone
Leisure
Retail
Lodging
Travel
Source: Euromonitor, 2013.
2013
2014
2015
2016
2017
42,029.7
22,545.9
1,353.8
14,786.0
1,682.7
1,661.3
45,562.7
24,592.2
1,450.1
15,893.9
1,822.9
1,803.5
49,580.8
26,895.9
1,559.8
17,178.4
1,982.2
1,964.5
54,174.9
29,502.0
1,676.0
18,724.9
2,150.2
2,121.9
59,502.6
32,563.6
1,810.8
20,518.0
2,293.1
2,317.2
CAGR %
2013-17
9.1
9.6
7.5
8.5
8.0
8.7
CAGR = compound annual growth rate.
As shown in the table on the following page, in 2012, lodging outlets were the best performers in terms of
average sales per outlet at over US$1 million, and per transaction at US$45.48, largely due to their higher
prices. Lodging foodservice establishments tend to charge more than their standalone counterparts, as
rental fees are more costly in such locations. As well, patrons of lodging establishments, which include
hotels and resorts, are generally willing to pay more for the convenience offered by on-site dining.
Page | 8
Outlets and Transactions of Indonesian Foodservice by Location, 2012
Subsector
Outlets
Consumer Foodservice
Standalone
Leisure
Retail
Lodging
Travel
203,249
104,098
16,046
63,561
1,518
18,027
Transactions
(thousands)
5,877,052.9
3,264,954.9
262,489.5
1,969,957.5
34,291.8
345,359.1
Average Sales Average Sales
per Outlet
per Transaction
($US)
($US)
191,670
6.63
199,581
6.36
78,984
4.83
217,400
7.01
1,027,675
45.48
85,194
4.45
Source: Euromonitor, 2014.
TOP COMPANIES
According to Euromonitor, international companies are prominent in the overall Indonesian foodservice
industry. As shown in the table below, the market is led by Yum! Brands (KFC, Pizza Hut) with 719
outlets, US$679.8 million in sales, and 1.7% of the total market share in 2012. Domestic company Top
Food Indonesia PT holds the second spot with 340 outlets, US$171.5 million in sales, and a 0.4% market
share in 2012. McDonald’s, with 144 outlets, and US$145.3 million in sales, occupied the third spot in
2012.
Top 10 Companies in Indonesian Consumer Foodservice
Company
Yum! Brands Inc
Top Food Indonesia PT
McDonald's Corp
Sederhana Citra Mandiri PT
A Great American Brand, LLC
Eka Bogainti PT
Edam Burger Indonesia PT
Starbucks Corp
J Co Donuts & Coffee PT
Pendekar Bodoh PT
Source: Euromonitor, 2014.
Foodservice Value Sales (US$ millions)
CAGR (%)
Market
2008
2012
2008-12
Share (%)
11.7
436.1
679.8
1.7
8.6
123.4
171.5
0.4
7.2
110.2
145.3
0.4
13.5
59.0
97.7
0.3
93.0
0.2
16.4
49.7
91.1
0.2
3.7
75.9
87.9
0.2
22.3
34.7
77.7
0.2
25.8
29.6
74.1
0.2
41.2
14.3
56.9
0.1
Total
Outlets
2012
719
340
144
105
235
148
3,220
135
117
61
CAGR = compound annual growth rate.
Although independent foodservice outlets still occupy the majority of the market, Indonesia has seen
many foreign food brands and chained companies enter and expand throughout the country. In 2012,
although foreign brands only contributed about 40% of the total number of franchise businesses in
Indonesia, they dominated in terms of value sales. Currently, the majority of foreign operators entered the
Indonesian foodservice market through franchisees. Local Indonesian companies usually become the
major franchisee of a particular brand. For example, Fast Food Indonesia Tbk PT and Mitra Adi Perkasa
Tbk PT are the master franchisees of KFC and Starbucks, respectively.
Among cafés/bars brands, Starbucks saw the biggest increase in value sales in 2012, largely caused by
its rapid outlet expansion. In 2012, Starbucks also co-branded with the BCA Visa credit card, so that
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consumers were eligible for certain discounts, upsized drinks, and “buy-one-get-one-free” promotions by
using their BCA Visa.
In 2012, Indonesia’s fast food sector was still dominated by foreign brands, except for Asian fast food.
International brands, such as Dunkin’ Donuts, McDonald’s, KFC and Baskin-Robbins (Trans Ice PT), are
the dominant players in their respective formats. Those fast food brands enjoy their strong positions in
Indonesia, due to their first-mover advantage, huge advertising and promotional budgets, as well as large
numbers of units/outlets in strategic locations.
CONCLUSION
As consumer lifestyles change, disposable incomes rise, and foodservice options expand, people are
cooking less. This trend has contributed to the growth and success of the Indonesian foodservice sector
as consumers seek out convenient and ready-to-eat meals. Although local Asian cuisine is important to
the Indonesian population, consumers are welcoming Western style meals as well, with the success of
Pizza Hut as an evidentiary example of this. As Indonesians become more accepting of foreign foods,
other international brands will slowly make their way into the market. While international brands tend to
target the middle- to upper-income consumers in large cities with the buying power and willingness to
purchase higher-end products and services, local brands are targeting all income levels throughout the
country. In Indonesia, foreign franchising is more apparent in cafés/bars, fast food and full-service
restaurants, while local franchising is more apparent in street stalls/kiosks, because lower costs are often
involved with establishing street stalls/kiosks compared to other types of consumer foodservice.
Major challenges that will limit the growth of the foodservice market include fuel price hikes, higher
commodity prices, and increases in real estate prices. While middle- to upper-income consumers are not
expected to significantly change their consumption levels at foodservice outlets, these factors will affect
the overall purchasing power of low- to middle-income consumers.
A significant opportunity for food exporters to Indonesia is supplying processed and packaged products to
the rapidly developing retail and foodservice sector. Canadian exporters can benefit from the growth of
the foodservice market in Indonesia by supplying operators with ingredients for their meals. As the
majority of consumers of Western food products are located in cities, targeting these areas first will
increase the likelihood of success. Given the popularity of Indonesia as a tourist destination for
foreigners, Canadian exporters should consider supplying products to foodservice operators in travel
locations, where Western food will be especially in demand.
RESOURCES
Euromonitor International (2014). Foodservice data.
Euromonitor International (2013).
- Consumer Foodservice in Indonesia
- Consumer Foodservice by Location in Indonesia
- Full-Service Restaurants in Indonesia
- Cafés/Bars in Indonesia
- Street Stalls/Kiosks in Indonesia
- Fast Food in Indonesia
- 100% Home Delivery/Takeaway in Indonesia
- Self-Service Cafeterias in Indonesia
The World Bank (2014) http://www.worldbank.org/en/country/indonesia
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Foodservice Profile: Indonesia
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