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Jakarta Post

Indonesian franchise, international expansion success

  • Anton Hermansyah

    The Jakarta Post

Jakarta   /   Sun, November 22, 2015   /  06:36 pm
Indonesian franchise, international expansion success (Illustration: Prabowo) (Illustration: Prabowo)

(Illustration: Prabowo)

Four Indonesian franchise owners have just been granted with an 'Indonesian Franchise go International' award at the Indonesia Franchise and Business Concept expo, recognizing the success of international expansion and development of a global brand.

The awarded franchise are Alfamart, Es Teler 77, Kebab Turki Baba Rafi and Bebek Ayam Pak Ndut. According the panel of judges, each of these homegrown brands have been successful in expanding their franchise and marketing their product to foreign countries.

Kebab Turki Baba Rafi is an Indonesian phenomenon. Beginning with two pushcarts in Surabaya in 2003, it has since become Indonesia'€™s biggest kebab franchise and currently boasts more than 1,200 outlets in Indonesia.

After launching an immense expansion project in 2009, the franchise now has outlets in seven other countries; Philippines, Malaysia, China, Sri Lanka, Singapore, Brunei Darussalam, and The Netherlands.

"Right now we are preparing to go to Africa. There are two proposals from Ivory Coast, Mauritius and Nigeria. We are currently in negotiations and the potential franchisees have visited our Baba Rafi office in Indonesia. Hopefully we will open in Africa in the first quarter of 2016," Baba Rafi founder Hendy Setiono said.

Alfamart, which boasts a 30 percent market share among Indonesia'€™s domestic-focused multitude of expansionist mini-market businesses, also recently expanded to The Philippines, opening 60 outlets in 2015. In 2013, the company established Alfamart Retail Asia Pte. Ltd. in Singapore to support their international operations.

Es Teler 77 has a total of six outlets in three countries; Singapore (three outlets), Malaysia (two outlets) and one outlet in Australia. During the awards, it was recognized that the Es Teler 77 franchise model differs from the norm as, instead of a franchisee paying a license fee to own a franchise, the franchise store remains under the ownership of the company.

"In the beginning of our global expansion, we decided that it would be our main mission to keep the authentic taste of Indonesian food. Thus the current foreign franchise outlets are owned by our company," said Es Teler 77 commissioner Anton Widjaja.

Lastly, Bebek Ayam Pak Ndut having successfully opened its first foreign outlet at Lucky Plaza Orchard Road, Singapore, in June 2015, has added its active outlet number to a total of 25. (ags)

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