Seeking to tap into Indonesia’s love of fast food, South Korea’s Lotteria will bring its chain of hamburger outlets to Indonesia early next year.
It has signed a joint venture with the AJBS Group.
Lotteria is part of the Lotte Group, one of the largest food and shopping conglomerates in Japan and South Korea.
Lotteria has grown rapidly in the past 30 years, dominating the market in Korea. Its signature bulgogi and shrimp burgers served on compressed rice buns cater to local tastes.
The company operates hundreds of outlets in Japan, South Korea, China, Taiwan and Vietnam. A company spokesman said Indonesia was an ideal next step since it was a big market with a high demand for fast food and a curious palette.
Lotteria opened its first China outlet last year and bought out Burger King Japan this year. It plans to continue pushing into Asia after building up its business in Indonesia.
“AJBS is a suitable partner and we are happy it has accepted our proposal,” a spokesman said.
The partnership is notable for AJBS, which has previously focused on retail hardware, home furnishings and high-end Italian furniture.
The group also owns Muji, a premium Japanese department store at Plaza Indonesia.
“We are interested in cooperating with Lotteria and bringing their product here because we think that the fast-food market is still wide open. Indonesians love fast food and always look forward to trying new options,” AJBS spokesman Eko Cahyono said.
“For starters, we will open some outlets in malls. We expect to start selling in the first half next year. In the future we may open standalone outlets.”
Eko declined to reveal the total amount of the investment.