International businesses seeking master franchisees in Indonesia

Inside Retail Asia

Indonesia’s economy is projected to be three times the size of Australia’s by 2030 – and the GDP of the world’s most-populous muslim population will rise from $3.2 trillion to $10.1 trillion by the same year*.

Those figures are driving top international franchise businesses to seek master franchisees in Indonesia.

The nation already has the largest market for food service in ASEAN, and with a fast-rising middle class and even faster growth in middle class incomes, there continues to be significant changes in lifestyles.

“The prospects for food franchises in Indonesia look very good as Indonesia continues to outpace many of its neighbours in ASEAN,” says Sean T Ngo, CEO of VF Franchise Consulting, who will be hosting a series of one-on-one meetings between international franchisors and local prospective partners on Friday (September 13).

“A recent study by Nielsen showed that 11 per cent of Indonesians eat out at least once a day, which is higher than the global average of 9 per cent. Another lifestyle change supporting the growth of the food franchise sector is a growing trend among workers in big cities is to work long hours either due to obligation or to avoid traffic jams.

“Thus, the practical solution for eating dinner is to eat out more often and closer to their workplaces. This fact is supported by the Nielsen study mentioned earlier with eating out occurrences being higher in Indonesia than the rest of the world.”

Trends like these are fuelling growth in Indonesia Food Service Industry by 7.06 per cent on a compounded annual growth rate basis, between last year and 2023.

There are already more than 700 franchise businesses operating nearly 30,000 outlets across Indonesia. Most of these are in food service and located in Java, primarily Jakarta, West Java, and East Java provinces. Approximately 400 of the 700 are foreign franchisors, while the rest are local brands.

Among the top international businesses to seek master franchisees in Indonesia that VF Franchise Consulting will introduce to prospective partners this week are:

  • Little Caesars, known for its Hot-N-Ready pizza and Crazy Bread, is the world’s largest carryout-only pizza chain with locations in eight Canadian provinces, all 50 US states along with 26 other countries and territories worldwide.
  • Mango Tree, one of the world’s best-known Thai culinary lifestyle brands, serving contemporary Thai cuisine.
  • Coca, a pioneer in the hotpot-restaurant sector, serving nutritional Thai and Chinese a-la-carte dishes, seafood and the signature hotpot with a variety of broths.
  • Mango Chili, a fun, vibrant social dining space where groups of friends and families can enjoy simple, easy yet original Thai street food.
  • The Belgian Waffle Co, which in just four years has grown to more than 210 outlets in 55 Indian cities and Nepal.

(*Standard Chartered report.)

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