T

housands of bakso (meatball soup) sellers across the country may have settled simply for their peddle carts or warungs to survive. But not for Hengky Eko Sriyantono, a former construction worker who now runs a top bakso franchise.

Under the brand "Bakso Malang Kota Cak Eko," he boasts a network of 115 modern outlets nationwide, and counting, soon perhaps expanding to overseas markets.

It was in 1997 when Eko quit from a construction company and tried to turn into a businessman. "Being an employee was boring. I needed more challenges," he told The Jakarta Post last Friday.

It took him eight years to realize that his fortune lie in the bakso business.

"Apparently, starting a business was not easy. I had changed businesses 10 times before I discovered this bakso business in 2005, that then made my life totally different," he said.

After six months of running a lucrative bakso restaurant in Jatiwarna, Bekasi, West Java, Eko opened two branches, one in Jakarta, the other in Surabaya, East Java. Finding out that the two branches also became lucrative quickly, Eko made a brand for his bakso and franchised it afterwards.

"The brand *Bakso Malang Kota' reflects the famous and unique bakso flavor from Malang (East Java)," the Malang native said.

Many were attracted by Eko's franchise and applied to be work with him, Eko said. "Until today, or in only three years, there are already 115 *Bakso Malang Kota Cak Eko' outlets in 30 cites across Indonesia, employing more than 400 workers."

And the number keeps rising, he said, as about three to five applicants were coming to him every month.

Eko said that his franchise would not run well if he did not successfully create a "memorable eating experience".

"I pay attention to every little thing, like outlet appearance, hygiene, packaging, cleanliness, and polite service. I wanted to create an image that bakso is no longer a low-class food. As you can see, most of my outlets are located in malls and modern shopping centers," he said.

Is the domestic market enough? Eko does not think so.

Soon, "Bakso Malang Kota Cak Eko" will start up in Vietnam as its first foreign location.

"Some Vietnamese businessman are now negotiating to *buy' the brand to get the rights to open *Bakso Malang Kota' outlets in the country," Eko said, adding that he was also studying the possibility to expanding to Singapore, Kuala Lumpur and California.

"I believe that our local products can attract foreigners as long as they are accompanied with good service and professional management," he said.

Indonesian Franchise Association chairman Anang Sukandar shared Eko's opinion.

"Dozens of local franchisers have expanded to foreign locations, some others are now looking to follow," he told the Post.

Anang cited a number of franchise brands from various business types that had opened outlets outside Indonesia, namely auto accessories retailer Auto Bridal, Es Teler 77 (fast food specializing in meatball soup and tropical fruit drinks), International Language Program (English course), Veneta (printer ink refill service), and Sari Bundo (restaurants specializing in Padang traditional foods).

According to Anang, franchises in Indonesia generate up to Rp 80 trillion (US$8.46 billion) in sales annually.

Anang said that there were currently 800 local franchises with about 36,000 outlets operating in the country. "It may increase to 840 by the end of 2010," he said.

About 45 percent of the local franchises are food-related, 15 percent are retail, and another 15 percent are educational.

"The franchise industry currently employs about 600,000 direct workers and involves more than 3 million workers from upstream to downstream," Anang explained.