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Jakarta Post

Warteg survive competition with delivery services

Amid increasing competition from restaurants facilitating online orders and delivery, warteg (Tegal food stall) continue to flourish in the city, serving rice-based dishes at low prices

The Jakarta Post
Jakarta
Mon, February 20, 2017

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Warteg survive competition with delivery services

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mid increasing competition from restaurants facilitating online orders and delivery, warteg (Tegal food stall) continue to flourish in the city, serving rice-based dishes at low prices.

“I’ve never thought about offering app-based delivery services because we are already overwhelmed with crowds of customers, particularly during lunchtime,” said Rita, owner of Warung Emak, a 4 by 6-meter warteg in Cawang, East Jakarta.

With the help of four assistants, she cooks at least 20 kilograms of rice a day to make hundreds of meals for customers, most of whom are employees at nearby offices.

Her warteg is located next to the PT Panasonic Gobel Indonesia electronics factory.

Rita said her customers generally spent Rp 10,000 (75 US cents) to Rp 15,000 for a plate of rice and accompaniments.

“Even though we set low prices, we can make at least Rp 1.5 million in net profit every day from the operation of the stall established by my grandmother tens of years ago,” she said.

Initially run by the villagers of Sidapurna, Sidakaton and Krandon in Tegal, Central Java, wartegs are usually managed by the same families that rotate management of each location every three to four months. This custom is still followed even in large cities such as Jakarta and Bandung in West Java, and is carried out to avoid boredom.

Meanwhile, another warteg vendor, Yudhika, 43, is offering his Kharisma Bahari warteg as a franchise.

“After operating my first warteg in Cilandak, South Jakarta, 20 years ago, I started franchising Kharisma Bahari for people who wanted to open their own business with an established name,” he said.

Offering franchises at Rp 100 million, Yudhika, an elementary school graduate, has sold 148 franchises in Greater Jakarta in just eight years.

He claimed that his franchisees generally cooked 25 kilograms of rice per day and made more than Rp 2 million (US$ 150).

Instead of partnering with delivery services, Yudhika helps his franchisers find strategic locations.

“The franchisers willing to open Kharisma Bahari near office buildings have to pay higher rent, but they also reap more profits because more people visit their stalls.”

Low prices are not the only reason why customers are flocking to wartegs to dine.

Ferry, 28, a private employee, said warteg served simple and delicious meals that everyone enjoyed.

“Some warteg have higher cleanliness standards, fighting the stigma that cheap food is unhealthy,” he added.

“Delivery service is for people who are too lazy to move around,” Ferry said.

Salsa, 27, another regular customer, has different reasons. “I like warteg cooking because they give me the sense of homecooked meals,” she told the The Jakarta Post.

“Sometimes they cook different dishes every day, hence giving me a lot of options.”

She also said apart from eating warteg meals, she still ordered delivery, too. “But not too often, because delivery food is more expensive.” (dea)

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