Fast Food in Indonesia

PROSPECTS

Fast food’s performance diminishes in 2017 due to the closure of 7-Eleven outlets

In the middle of 2017, Modern Putra Indonesia PT officially closed down all of its 7-Eleven convenience store outlets in Indonesia. Although the reasons for the brand’s closure do not have any connection with the performance of the brand’s Ready To Eat (RTE) range, the sudden closure of the outlets diminished the performance of fast food in 2017 quite significantly, since 7-Eleven originally had a large chain of convenience store outlets in Indonesia that offered fast food.

Chained players drive sales growth

Chained fast food dominates the category. This is because chained players are very active in expanding their outlets into regions/cities across the nation.

Fast food is set to progress positively during the forecast period

Within the fast food category, the most significant contributors to value sales are chicken fast food and Asian fast food. Chicken fast food, in 2017 the largest category, will be overtaken by Asian Fast Food over the forecast period.

COMPETITIVE LANDSCAPE

New menu developments help brands stay competitive

New menus are frequently being developed by established brands to attract consumers. Usually at least once in three months chained fast food outlets such as KFC, McDonald’s and Lawson will experiment and launch new products to test consumer acceptance.

Cheesy and spicy dressings are more favoured

There is a common trend seen among players when they launch new menus. Cheese is one of the most favoured ingredients among food lovers in Indonesia.

Chained fast food players compete through outlet expansion

Competition within the fast food category in Indonesia is getting tighter. Despite the fact that foreign brands already lead value sales, such as KFC and McDonald’s, they are expanding their outlet networks aggressively across the nation in order to drive sales growth, which in turn will either maintain or increase their value share in the category.

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