Indonesian Restaurant Marketing Tips

Family Restaurants Marketing in Indonesia

7 Tips For Operators

By : Ghani Kunto is a Co-Founder of YouthLab Indonesia

There's an Indonesian proverb that goes: "Ngepul ora ngepul, yang penting ngumpul." It can be loosely interpreted to mean that Indonesians value family above anything else. Banking on this, casual-dining restaurant chains targeting families opened their doors in Indonesia. Yet, many of them found floundering revenue and diminishing market share.

Family restaurants are supposed to be places where families go to eat. Some restaurants were finding that less and less families were eating there. In fact, there seemed to be less people eating there in general.

Is this really the case?

Here's my personal take on the case.

1. Calling yourself a "Family Restaurant" won't make families come to your restaurant

The successful family restaurants in Indonesia do not call themselves family restaurants. Restaurants that successfully attract families do not have pictures of families eating, or a playpen, or a kiddy menu, or a sign that says "family restaurant." What they do have are actual families sitting down and eating.

In Indonesia, these restaurants could be places that offer traditional Sundanese or Padang food, or Japanese food, or most likely, Chinese restaurants that focus on seafood. They all offer food that slightly exceed diner's expectation, price that's a bit expensive but still falls within the reasonable range, and long tables.

It's about providing good food-nothing too "unique" but special enough that you want to share it with your family-and it's about providing a way to easily share it-like big enough tables and menu items designed to be eaten by more than 2 people.

It's not about being a family restaurant. It's about being a restaurant good enough to take your family to.

2. Worry less about costumes, worry more about what's inside them

This goes with the above point. When eating out as a family, Indonesians go out in groups of 4 to 12 people. Gimmicky costumes add no value. Quick, excellent service does. Amusing the kids is nice, but what we really want is to be served without waiting, the order to come out quick and correctly, the highchair to be provided without asking, and someone to hold the door while I help my elderly grandmother up the stairs.

3. Sell to the one paying the bill

The youths of Jakarta spend around USD$ 2.12 billion per month on eating and hanging out. Compared to their adult counterparts, they eat out with more friends, and they eat out more often. Enticed by this, some family restaurants started making their decor more hip, cool, and "younger."

Resist this temptation!

The youth market, especially in Jakarta, is a whole different ball game. They speak a different a language, through a different medium, about different things than the adults. You've been learning the language of the parents, and now you want to learn a whole new set of language to sell to the younger group with the risk of losing your core customer group? Stick with your strength, old man.

4. Father pays the bill...

Prices should not exceed Rp.60,000/per person (including drinks). If you're running a marketing campaign together with credit card companies, choose a campaign that's most attractive for the father.

When the bill comes, give it to the eldest man at the table.

5. ... mother chooses the menu...

Menu should contain healthy items (beyond just salads). No alcohol-90% of the population is Muslim after all. When it's time to choose what's on the menu, waiter should consult the mother.

6. ... kids have veto right in restaurant choice

A teenager is 10 times more influenced by his peers than by his parents, according to a study in the beginning of this year. You risk being vetoed out if there's a chance the teenager would be ridiculed by his/her friends. So, again, as a family restaurant, you can attract more teenagers by being "more adult."

7. Go local

Know your neighborhood. Support local causes. Engage in community discussions.

Take a page from Subway, who used hand written signage to empathize with a community going through a rough patch of recession, and end up increasing profits by many folds.

Indonesia's restaurant market is still fragmented. With enough gumption, opportunities are still abound eatery brands to rule a niche. The family restaurant niche is still wide open for domination. Avoid the pitfalls, and you'll find yourself with enough marketshare to chew on for years to come.