How Is Indonesian Food And Beverage Industry During The Pandemic?

Nora Setiawan

May 28, 2020


How Is Indonesian Food And Beverage Industry During The Pandemic?

Nora Setiawan

May 28, 2020

The food and beverage industry across the cities in Indonesia have been hit hard by the outbreak, especially in tourist hotspots, Bali, Jakarta, and Yogyakarta. The revenue in this sector is declining as the physical distancing regulation has been applied. People would rather stay at home than go out or even take away the meals. This article will discuss the food and beverage industry in The Greater Jakarta.

Indonesia Food and Beverage Industries Situation During The Pandemic

According to data from PT. Moka Teknologi Indonesia, a homegrown startup that provides digital cashier services, told that a number of industries had experienced losses due to the pandemic, including the services and retails industries, but the food and beverage industries got hit hard.

13 cities in Indonesia experienced a significant decrease in their daily earnings, Surabaya in East Java and Bali were the two cities with the biggest fall sales. In Surabaya, the food and beverage industry has plunged by 26%, while in Bali, the industry has decreased by 18%, and followed by areas in Greater Jakarta, including Depok and Tangerang. However, the data did not mention how much in percent they had declined.

As a result, major restaurant chains that employ thousands of workers have chosen to temporarily shut down their operations. These are Ismaya Group, which has more than 20 restaurants, with more than 60 outlets, and the Boga Group, which runs more than 150 restaurants.

The government advice on staying at home to slow the spread of COVID-19 made the residents stay more at home, and it would have a huge effect on the food and beverage industry. This case has led to consumer habits to shift from dine-in to take-away food. Moreover, the business players must be able to survive for the next 3 or 6 months, and there needs to be a temporary change in business processes for the cash flow to remain positive. One of them is having a delivery service.

Indonesian traditional food and beverage

The Best Way To Survive During A Hard Time

A focus on takeout deliveries has become one of the keys to keep the daily income positive. Since the PSBB runs, there has been a change in consumer behaviour, as people would rather stay at home instead of going out. Some Indonesian food and beverage industry are already doing something to survive. For instance, Boga Kitchen, Ismaya Group, Lotteria, Solaria Group, and many more. Let’s get into the details below!

Having the delivery service can also help the customers to get the desired meal, as they might not have time to cook a proper meal. The service is one of the solutions that customers can use. Additionally, there are restaurants that have been rolling cheap promos or discounts, they can also utilize these to satisfy their cravings. The well-known restaurant chains, Ismaya Group is using Go Food to sell their meals, and offer a discount of the menus and restaurant tax.

Providing a ready to cook menu is also helping to increase the revenue in the midst of this outbreak. As people are working from home and might have a little time, ready-to-cook is the best option for them. You only have to do a simple step to enjoy your favourite meals. Offering the promos is also effective to survive in the business. Create a buy one get one free for takeout deliveries, or special packages for the breakfasting will work too, as we already entered the fasting month.

Not to forget to throw the discounts for the customers, just keep in mind that people will tend to buy things at a discounted price. Especially, during this time when the economy is unstable, the discounts will save them to buy the basic needs. Even if the restaurants have already had the best way to survive, however it could not separate from how the consumers are willing to buy the products. Furthermore, we can still help our Food and Beverage industries to keep their businesses open. Here the things that you can do!

How To Help Them

As we have to brace for further impact of the coronavirus, self quarantines, physical distancing, and city shutdowns have a large effect on the business. Many local dining and drink establishments have shut down and seen a revenue loss. Meanwhile, there are ways to help, at least things that you can take your part as a consumer. Here is how you can support them!

Dine out with precautions

The government has recommended safe distancing measures for food and beverage industry operators, including putting in place for a distance, at least a meter away from the next table. If you choose to dine in at the restaurant, please do it safely. Pick the restaurants which are spacious, well ventilated, and have standard hygiene measures, such as regular disinfecting of tables, chairs, and all of its spaces.

Order take out

Where dining out is not an option, or your favourite restaurant has not provided a dine-in service. You can always take out, but keep it mind to bring your own containers. It is not only for your peace of mind, but also to reduce wastage.

There is always delivery

You will love how you enjoy good food without leaving the house! There are plenty of food delivery apps that you can use. Such as, Go Food and Grab Food. Also, you can utilize their promos, whether it’s a discount voucher or free delivery within a certain distance. If you are extra precautions, you can ask the driver to put your food in the distance or hang it on your gate. Both ways are good options.

Shop the ready-to-cook

There are some restaurants that offer ready-to-cook packages. You can always make your favourite food at your own kitchen without the hassle. Some of them are partnerships with e-commerce, for example, Boga Group has opened their online store on Tokopedia, and they sell menus for you to cook in a very simple step.

At this time, binge-eating is one of the things that you can enjoy, or cure boredom. It is crucial to keep your diet in check to boost your immunity. With a lot of options to order takeout and delivery, you should fulfil the daily nutrition. Also, you can support them by getting your favourite and nutritious meals in your doorstep.

You can also read our article about Business Continuity Plan and an example from Vietnamese food and beverage businesses to cope with the coronavirus impact.

Related posts

Doing Business

Public Holidays in ASEAN countries (Part 4 – Indonesia)

Famously known as “The Emerald of the Equator”, Indonesia is home to at least 300 ethnic groups, in which the majority of the population belong ...
Read more

How Coronavirus Could Reshape Education in Indonesia?

It should come to no surprise that due to the coronavirus has spread rapidly across the country have taken swift action to mitigate the development ...
Read more

Is It The Right Time To Invest in a Property?

Buying and owning real estate is an investment that can be both satisfying and lucrative. Prospective real estate owners can use leverage to buy a ...
Read more

How To Get a BPOM Certificate for Your Food Products in Indonesia?

Food and Beverage industry has been growing recently, and many entrepreneurs are attracted to have such businesses, especially in Indonesia. This is followed by the ...
Read more

Download our Latest Ebook about Real Estate and Property!

Real estate holds a pivotal position in the development of a country, not only via the spillover impacts on other economic sectors such as construction, manufacturing, tourism, finance and banking etc. but also affecting the social dynamic by mobilizing the residency and infrastructure system. Foreign direct investment in real estate (RFDI) in Vietnam has a long running history and is unique in that it is largely dominated by the private sector compared to other industries which usually still have a rather large Government involvement. International capital has consistently been selecting real estate as the destination of choice, given that RDI has always been in the top 2 and 3 for volume inflow over the last 10 years, even throughout extremely turbulent periods such as COVID-19, per the General Statistics Office of Vietnam’s (GSO) data. Find out more in this ebook edition.

Tải cuốn ebook mới nhất về nền kinh tế số Việt Nam!

The digital economy of Vietnam has been fueled and accelerated by the global digital trends and the pandemic Covid-19. The movement of digital transformation is underway in every corner of Vietnamese life, strongly influencing the way people do things. Digital economy is the future of the Vietnam economy. Realizing the potential of the digital economy, the Vietnam government has issued policies, guidelines and created legal frameworks to support and further enhance this economy. In this ebook edition, the digital economy is looked at from different angles. Perspectives from the key elements comprising Vietnam digital economy are examined and discovered.

Our Happy Clients