• Sriboga Team

How International Bakery Brands Can Succeed In SEA Markets

Many premium bakery brands are opening shop in South East Asia (SEA) markets such as Indonesia to benefit from the increasingly attractive propositions of this country when it comes to cost of operation and sheer growth potential. There’s a lot to like about SEA markets, but can Euro/American companies adapt to this unknown business opportunity and succeed?

The bakery segment is one of the fastest growing segments in food service in Indonesia

Leading food franchise operators in Indonesia such as Sriboga Raturaya are optimistic, but they’ve also made it clear that operating in Indonesia is not the experience you would expect in Europe, or any other western country. Mr. Alwin Arifin—owner of Sriboga Raturaya—reiterates the importance of expert operations in franchising, especially for the Indonesian market.

Being the leading food franchise operator in Indonesia and owner/operator of an industrial bakery, Sriboga Raturaya has a lot of control over supply and offer. They not only produce food for the 450+ outlets that they have throughout the country, but they also do so for dozens of brands who require quality flour for their business in a growing economy that represents the biggest portion of the SEA marketplace.

The Rise of International Bakeries in Indonesia and Beyond

While it’s not easy to pinpoint the exact number of international bakeries that decided to grow their business by tackling Indonesian territories, there are some remarkable examples that are driving the demand of flour in the country upwards. Famous European bakery chains like Paul are taking their operations to the East in order to leverage this newly formed space in the industry.

However, it’s not without challenges that they’re taking this step. Customs in SEA markets are completely different than those in American and European markets, and while Indonesia is still a developing country, people are eager to take steps into more profitable, more financially stable businesses that will allow the country to rise. Bakery and flour are part of that movement.

SEA’s growth in the baked goods business is driven by young millennials and consumers who are open to adopting a Western lifestyle. After all, consumption of baked goods directly within bakeries is a Western concept, but it has made its way on the global scene thanks to globalization and other major forces at play. There is also an increased demand for healthier products in Indonesia.

Another example of a leading bakery that expanded its operations to tackle SEA markets (and more specifically the Philippines) is Magnolia Bakery, otherwise known as “M Bakery.” This New York-based bakery is one of the first American bakeries that decided to tackle this new market thanks to the growth potential that so many businesses are scared to tap into due to insecurity.

How Leading Bakeries Can Succeed in Indonesia

As we previously stated, leading food franchise operators in Indonesia are optimistic about the future of this business. That’s because they see increased demand for flour throughout their supply chain, and they’re taking steps to up their game with more employees, more infrastructure, and more restaurants in the country. This means that the industry is certainly flourishing.

On the other hand, international businesses have no idea how to tackle both business and marketing strategy as well as operations in this new world. That’s why Sriboga Raturaya’s industry insights and experience is so important to the success of these companies.

Through Sriboga, global franchises like Pizza Hut have already flourished in Indonesia, and the company that lies behind this franchising in Indonesia is now publicly listed. This is a clear sign that the American-style business is growing strong in the territory, giving young entrepreneurs the opportunity to seize more and more of the sector. The same goes for franchise bakeries.

Flour is a major force in the Indonesian industry right now. Flour milling companies are expanding rapidly as Indonesian people are eager to enjoy a westernized culinary lifestyle. In order to take advantage of the growing interest in international cuisine, Indonesian companies are emulating the success of international food businesses, as well as bringing these international brands into the Indonesian market.

The Leading Food Franchise Operator in Indonesia

While there are many companies who strive to offer good products in the franchising industry, Indonesia’s #1 food franchise operator is—without a doubt—Sriboga Raturaya. Not only is Sriboga Raturaya’s food franchise portfolio impressive, which includes Pizza Hut and Marugame Udon master franchise rights in Indonesia, but also their continued achievements in operations and expansion.

Sriboga, through their PT Sarimelati Kencana, boasts expertise in full-scale franchising operations which is required to build brands like Pizza Hut successfully in Indonesia. Sriboga continues to analyse new food service opportunities, especially with international collaborators, in order to successful foreign food business and place it correctly in the Indonesian market.

Sriboga Raturaya started in the flour milling industry and continue to operate one of the leading flour mills in Indonesia today, Sriboga Flour Mill. While flour is the main product, Sriboga has expanded to deliver other award-winning, high-quality food products and ingredients, including heat treated flour and mixes. Rigorous product development and exploration of new sales channels gives Sriboga Flour Mill the ability to introduce ingredients to new markets quickly, efficiently, and in a cost-effective manner.

Sriboga works with international businesses to bring a collective vision to life: creating success and prosperity for leading food brands, including bakeries, in Indonesia. The local distribution system is spread throughout the nation to help any business owner with their supply needs, at any time, in any circumstance.

Sriboga also work closely with SME’s in the wheat flour sector and related industries. Learn more about our operations in food solutions or visit our bakeries roundup for more information.

Sriboga’s story continues to be written every day by thousands of men and women around the world. Their experience, loyalty and trust provides inspiration for growth. Sriboga is an innovative company, with strategic planning extending well into the future. Nevertheless, Sriboga stays true to their history and values. The wheat stalk is our history, it reminds us of where we began. It is our link to our past, which goes back over 20 years, as we plan for the future, overcome a new set of challenges and contribute to a sustainable economy for our people.

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