Jakarta is often considered the business center of Indonesia, but it turns out that Bali is a more lucrative place for the culinary industry.
The island, which is famous for its beaches, actually offers great opportunities for food and beverage entrepreneurs. Is this related to taste, atmosphere, or business strategy? Let’s take a look at the data and facts underlying this phenomenon.
Based on data from Indonesia’s Central Statistics Agency, in 2023 the number of food and beverage supply businesses in Bali reach 245,000 units with a total revenue of USD 438 million.
According to CNBC Indonesia, this figure is more lucrative than Jakarta, which has 310,000 business units, but with a total revenue of USD 368 million. This means that each business in Bali earns an average of USD 1,786 per month, almost double that of Jakarta which is only USD 988.
Tourism and Technology Drive Balinese Culinary Profits
One of the main factors that supports Bali’s dominance is the tourism sector. With more than 6 million foreign tourists every year, the demand for high-quality food is constantly increasing.
Bali is now growing with a variety of culinary attractions, such as food courts, food courts, and angkringan. Fine dining restaurants, artisan cafes, and local stalls collaborate to create an unparalleled culinary experience. It’s no wonder that 45% of the total food business in Bali is dominated by the restaurant category, compared to 30% in Jakarta.
In addition, another factor that is no less important is the use of technology. As many as 40% of culinary businesses in Bali use the internet for marketing, online sales, and digital payments.
This figure is higher than the national average of only 33.13%. With this digital strategy, entrepreneurs in Bali can reach a wider market and improve their operational efficiency.
Bali also excels in terms of cost efficiency. The average food business expenditure in Bali is USD 967 per month, lower than Jakarta which reaches USD 1,161. With a larger profit margin, Bali is an attractive destination for business actors and culinary investors.
Bali’s success shows that strategic location, digital innovation, and cost efficiency can be the determining factors for success. Business actors in other cities can take inspiration from the strategies implemented in Bali.
Simple Guide for Starting a Culinary Business
Some tips that can help to start a culinary business that is in demand by tourists in Bali.
1 In-Depth Market Research: Conduct thorough research to find out the latest trends, consumer preferences and competitors in your area.
2. Strategic Location and Unique Concept: Location is one of the key factors in the success of a culinary business. Choose a strategic location, in addition, choose a culinary concept that is unique and differentiated from others.
3. Food and Service Quality: Ensure that the raw materials used are fresh and of high quality to increase customer satisfaction. In addition, train staff to provide friendly and professional service.
4. Strong Branding: Create a strong and alluring brand with attractive logo designs, packaging, and visual identity.
5. Creative Marketing: Leverage creative marketing to promote your business. This can include social media, advertising campaigns, promotional events, or collaborations with culinary influencers.
6. Good Financial Management: Manage business finances well. Create a realistic budget, monitor your operating costs, and make sure your income is enough to cover all expenses and still make a profit.
Sources: CNBC Indonesia, Kompas.com
Image: via iStock
