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Industry News
MAPI Cafe and Restaurant Business Grows by 25%: October 2017

The retail company, PT Mitra Adiperkasa Tbk (MAPI) gained good business performance until the third quarter of 2017. The business segment of MAPI cafe and restaurant contributed significantly.

In the third quarter financial statement of 2017, the cafe and restaurant segment grew by 25% from Rp.1.2 trillion to Rp.1.5 trillion. Although it only has 12 percent share, it lost to MAPI's retail segment, which contributed 70 percent or Rp.8.2 trillion of total sales, but the retail segment only grew 17 percent. According to Reza Priyambada, analyst of Binaartha Parama Sekuritas, food and beverage segment is very prospective.
Why are Restaurants Business Still Promising: August 2016

In the midst of intense competition culinary business, these two franchises have advantages not shared by competitors. First, Platter Resto from Surabaya that focus offers a menu of typical Japanese and Korean on a hotplate. According to the Franchise Operator Platter Resto, Doni S Talam, the restaurant is included in the group of franchise restaurants are quite famous and has experienced more than five years. Now there are three outlets, two of which center outlet and one partner outlet in Pekanbaru. In the near future will add outlets in Bali, Malang, Yogyakarta and Palembang. There are two packages offered partnership : Silver Class and Gold Class. The investment value of Rp 290 million as a franchise fee is paid once at the beginning. Second, Bebz Pizza from Bandung. According to the owner, Ervan Restiana, the advantages Bebz Pizza is at open kitchen concept outlets . In addition, the menus do not use preservatives. Pizza menu is offered in the form of mini and innovation itself so affordable. Currently there are 25 outlets, including 24 outlets belonging to the partner, and the rest belong to the center in Bandung. There are four investment package. Package of Rp 6 million, Rp 15 million packages, a package of 25 million and 50 million packages.

Chairman of the Franchising and Licensing Association of Indonesia (WALI) Levita Supit said business players should pay attention to the advantages offered. It is a way to compete with other competitors. Products sold must be unique and different from existing ones.

Restaurants in Indonesia
Indonesia Industry Report and Market Research
July 12, 2018
Industry Code : H6311
Forecast to : 2022

Restaurants in Indonesia This class consists of businesses providing, serving, and selling food and beverages to the public in places of business that are located in part or the whole of a permanent building, equipped with equipment and processes for manufacturing, storage, and serving. The process of making food from the raw materials is carried out in the business.
The primary activities of firms in this industry are:
- Restaurants operation.
- Fast Food operation.
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Jakarta 12720, Indonesia
Chapter Headings US $ Select All
Industry Outlook 60.50
Key Statistics 60.50
Market Characteristics 36.30
Segmentation 36.30
Industry Conditions 60.50
Industry Performance 60.50
Key Competitors 60.50
Key Factors 27.50
Not Just Furniture, IKEA Earned Success from Restaurant Business 0.39
Hotel and Restaurant Industry Must Synergies with Government 0.39
The joy of Restaurant Business 0.39
Makassar Prepare Region Center for Street Vendors 0.39
Apkrindo 0.39
Hoka Hoka Bento, Top Brand 2009 0.39
McDonald's Indonesia Family Restaurant, Gives Continuous training 0.39
Fastfood Indonesia Allocates Rp.150 Billion Capital Expenditure 0.39
McDonald's Kemang Re-opened 0.39
Pamiso Provides Job for 15 Million 0.39
Pizza Hut to Open 200 Outlets 0.39
Es Teller 77 Becomes Icon of Local Franchise Business 0.39
Es Teler 77 Opens New Outlet Weekly 0.39
Tourism Law Draft to be finished by End of Year 0.39
Fastfood Indonesia to Open 20 KFC 0.39
Self-service Restaurants Decrease Job Opportunities 0.39
Mandarin Restaurants Popular in Semarang 0.39
Ayam Bakar Wong Solo Expand Using Franchise System 0.39
McDonald's Increases Profit Projection 0.39
Hotel and Restaurants Investment Value Increase 15 Percent 0.39
Papa Ron's to Open 4 New Restaurants This Year 0.39
Papa Ron's Pizza Goes International 0.39
Fast Food in Indonesia expects 15 percent sale increase 0.39
Franchise Businesses Increase 15 Percent 0.39
Restaurants Develop New Concepts to Attract Customers 0.39
Aiming for Younger Consumers 0.39

Report Content

The Restaurants industry in Indonesia research report contain trend analysis, statistics, market size information, industry growth rates as well as major competitors.

Major market segments are identified and also those forces affecting demand and supply within this industry. Performance analysis includes emerging industry trends as well as recent results and performance of each key company. Drawing on the depth of information DIS also provides 5 year forecasts for this industry.

The comprehensive study also examines details such as the barriers to entry, operating cost structure, technology & systems and domestic & international markets. Tables and statistics include: Industry revenue, exports, imports, wages and number of companies in the industry, Industry growth and geographic regional data.

KEY STATISTICS 2014 2015 2016 2017 2018
Industry Revenue 107,942 104,367 131,689 158,085 169,151 Rp.Billion
Industry Gross Product 7,016 6,784 8,560 10,276 10,995 Rp.Billion
Number of Establishments 110 120 130 130 130 Units
Employment 109,600 101,200 85 81,000 85,400 Units
Exports 2,856 3,457 6,481 6,521 7,820 Rp.Billion
Imports 10,926 10,899 25,482 30,419 35,880 Rp.Billion
Total Wages 1,425 1,316 1,114 1,010 1,109 Rp.Billion
Domestic Demand 116,012 111,809 150,690 181,983 197,211 Rp.Billion
The data above is sample data only

Cost of Goods Sold 67.13 Gross Profit 32.87
Operating Expense 21.5 Profit (Loss) Before Tax 11.36
Administration 1.58 Depreciation 0.56
Electricity 0.66 Freight 1.99
Fuel, Parking, Toll & Retribution 1.62 Interest 3.09
Land and Building Rental 2.74 Marketing 2.69
Repairs and Maintenance 0.54 Service Fee 0.7
Staff Welfare Allowance 1.38 Other Expenses 0.92
Stationery & Inventory 0.48 Telephone 0.8
Utensils and Equipment 1.24 Wages and Salaries 0.5
The data above is sample data only

Central Java 13.4 DKI Jakarta 6.5
East Java 22.4 North Sumatra 17.9
Papua 2.0 Bali 3.0
South Sulawesi 6.0 West Java 28.8
The data above is sample data only

Chapter Headings

Industry Outlook

A key analysis section, the Industry Outlook outlines expectations for the key industry indicators over the next five-year period.

Key Statistics

The key indicators for the industry for last five years are provided here, and include:
•   Industry Revenue
•   Industry Value Added
•   Employment
•   Establishments
•   Exports
•   Imports
•   Domestic Demand
•   Total Wages

Market Characteristics

Market Size
This section gives the size of the domestic market and the size of the export market for each industry.

This section lists the industry"s major supplier and its major customer industries, with SIC"s (KLUI) for easy reference.

Demand Determinants
Lists the key factors which are likely to cause demand to rise or fall.

Domestic and International Markets
The trend for the size of exports (are they increasing, decreasing, not changing) and the trend for the size of exports as a proportion of turnover. The size of the domestic market (domestic demand) and the proportion of this accounted for by exports
Outlines the trend for the size of domestic demand and the trend for imports as a proportion of domestic demand States the size of the domestic market (domestic demand) and the proportion of this accounted for by imports
Domestic and international markets defines the market for the products and services of this industry, both locally and in other countries. This outlines: the size of the domestic market (domestic demand) and the proportion of this accounted for by imports, the key countries from which imports are sourced (with percentage and relative size if available), the trend for the size of domestic demand and the trend for imports as a proportion of domestic demand, the size of turnover and the size of exports as a proportion of turnover, the key export destinations (percentages and relative importance of these, if available, the trend for the size of exports (are they increasing, decreasing, not changing) and the trend for the size of exports as a proportion of turnover.

Basis of Competition
Gives the key types of competition between firms within the industry. It also highlights competition from substitute products in alternative industries.


Products and Service Segmentation
This details the key products and/or services provided by this industry. Wherever possible, we include an indication as to which of these are the most important to demonstrate which have a more significant influence over industry results as a whole.

Major Market Segments
The key client industries and/or groups are detailed here. Wherever possible, an indication as to which of these are the most important is included. This will highlight the client groups that are most important to the industry. Trends in these client groups may have an important impact on the demand for products and services provided by the SIC, hence they may be important to monitor suggested links

Industry Concentration
This is an indicator of how much industry turnover is accounted for by the top players.

Geographic Spread
This is a guide to the regional share of industry turnover/gross product. DIS calculates this on the basis of turnover or production, however, the number of establishments may be used as a proxy where these are not available.

Industry Conditions

Barriers to Entry
This section outlines factors that can prevent a new company from entering the industry and will also give an indication of the extent to which this occurs.

Taxation refers to all kinds of taxation that are specific or are particularly important to an industry. This includes taxation concessions.

Industry Assitance
Assistance refers to government and/or other measures in place designed to improve the performance of the industry or sections of the industry. (eg grants, subsidies)

Regulation and Deregulation
Where licenses are required to operate in an industry, these will be noted here. Where possible, details regarding the degree of difficulty in obtaining a licence are included. Important issues relating to regulation and deregulation are included here.

Cost Structure
The average costs for a company operating in this industry as a percentage of total revenue.

Capital and Labour Intensity
Provides a guide to the amount of capital used in production/providing a service compared to the amount of labor in the total mix of inputs.

Technology and System
Acknowledges the latest technology and/or systems available to this industry within the country. Technology refers to machinery and equipment (such as computerisation) which enables better and more efficient production. Systems refer to methods of production that also enables better and more efficient production.

Industry Volatility
Industry volatility refers to the year on year fluctuations, which occur in industry output.

This gives an indication of the extent to which the industry is global. As a guide, we base its definition of the level of globalization on a number of factors, some of which include: the level of foreign ownership, the proportion of demand accounted for by foreign operators, and in the case of industries dominated by domestic participants, the volume of production conducted in other countries.

Industry Performance

Historical Performance
This section details previously important events in the development of the industry

Current Performance
This is the key analysis section for the industry over the past five years. The key performance indicators for the industry in question are discussed, providing trends and explanations for occurrences in the industry.

Key Competitors

Lists the Major Players in the industry with key details relating to those players

Key Factors

Key Sensitivities
The sensitivities are factors that are outside of the control of an operator of the industry, but are likely to have significant impact on a business.

Key Success Factors
These are the factors within the control of the operator and which should be followed in order to be successful. Often these may include behavior that will help to minimise the effects of the key sensitivities.

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Table of Contents
About this Report
Key Statistics
Market Characteristics
Industry Conditions
Key Factors
Key Competitors
Industry Performance