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Jakarta Post

Food delivery business becomes 'more spicy'

  • Norman Harsono

    The Jakarta Post

Jakarta     /   Fri, March 29, 2019   /  10:23 am
The Jakarta Post Image
A Grab driver (left) and Go-Jek driver (right) pick up orders from a popular spicy fried chicken restaurant in West Jakarta.(JP/Norman Harsono)

Publicly listed PT Sarimelati Kencana became the first-ever corporation to focus on food delivery in Indonesia when it opened its flagship Pizza Hut Delivery (PHD) outlet in North Jakarta in 2007. The small, red-and-black outlet is designed for fast delivery. It uses most of its space for kitchen instead of a seating area, has half the menu of a restaurant and a fleet of motorcycles parked outside. PHD outlets are an example of the now trending online delivery services called “delivery-only kitchens”, which are designated spaces where popular eateries can open branches closer to neighborhoods with high demand and, thus, reduce delivery times especially in heavy-traffic cities. Sarimelati Kencana itself described PHD outlets as a “defensive strategy to erect barriers of entry for competitors”, which initially proved effective, as PHD held a 64.6 percent ma...