Limited-Service Restaurants in Indonesia

2020 IMPACT

Social distancing and official quarantine measures result in strong sales declines

2020 saw limited-service restaurants register very negative sales growth in Indonesia as the adverse impact of the COVID-19 pandemic and the official response to it resulted in all of the companies active in the channel facing extreme difficulties attracting dine-in customers. Although the very stringent quarantine restrictions that were introduced under the auspices of the large-scale social restrictions programme (PSBB) were in place for only a few weeks during the second quarter of the year, the general reluctance of consumers to socialise outside of the home due to fears of contagion cast a pall over Indonesia’s entire consumer foodservice industry throughout 2020.

Consistent availability of takeaway and delivery supports the channel’s performance

The sales declines registered in limited-service restaurants during 2020 were less severe than those recorded in other consumer foodservice channels. One of the main factors supporting the relatively favourable performance of limited-service restaurants was the fact that these outlets tend to have a far higher proportion of sales generated via takeaway and delivery orders than other types of consumer foodservice outlets.

Drive-through services and contactless card payments particularly popular in 2020

One important factor to take into consideration when assessing the relatively favourable performance of limited-service restaurants during 2020 was the fact that many of these outlets offer drive-through services. With many consumers becoming very concerned about the chances that they could come in contact with the COVID-19 virus when visiting a limited-service restaurant or other type of consumer foodservice outlet, the option to order food and receive those orders without needing to leave one’s vehicle became extremely attractive.

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