•    HOME   
•    NEWS   
•    BUSINESS   
•    INTERNATIONAL   
•    TECH   
•    SPORTS   
•    LIFE & TIMES   
•    OPINION   
•    MY JAKARTA   
•    BLOGS   

Flamboyant and controversial businessman Bambang Rachmadi is trying to turn around his recently troubled business fortunes by transforming his 13 former McDonald’s fast food outlets into a new food brand, “ToniJack’s Indonesia.”

The abrupt rebranding included the first-ever McDonald’s outlet in Indonesia, located at Jakarta’s first modern department store, the Sarinah shopping mall.

The change was made so hastily that instead of being replaced, the McDonald’s sign at the mall was covered with a tarpaulin advertising the new brand’s logo, a one-eyed pirate. The famed golden arches were still clearly visible underneath the flapping sheet.

“I had to adopt a new strategy after the end of my partnership with McDonald’s,” a visibly tense Bambang said at a press conference on Thursday at Sarinah.

“I’m deeply sorry about [the end of the partnership] but I’m sure our employees understand the situation.”

Bambang added that about 800 workers would have lost their jobs if he had not continued the business under the new brand.

The year 2009 has not been kind to Bambang. First, his small bank, the unfortunately named Bank IFI (pronounced “iffy”), was liquidated by Bank Indonesia in April, with the central bank later investigating it for alleged irregularities before handing the case over to the police.

This was followed by a long-running public dispute between Bambang and fast food giant McDonald’s, which began after the US-based corporation transferred his sole franchisee rights to the Sosrodjojo business family in March.

The corporate giant is believed to have sold the rights to recoup some $135 million in unpaid debts allegedly owed to it by McDonald’s Indonesia.

Bambang was left with only 13 owner-operated McDonald’s outlets, and the right to operate under the McDonald’s brand until Oct. 1.

He has argued the rights’ transfer was unfair and is pursuing legal action against the global fast food giant.

Meanwhile, Bambang said the new name and logo were inspired by his nickname as a child.

“I used the name Toni because when I was a teenager people called me Tony. Jack came from the idea that fast food outlets should have a family theme, so I picked a pirate theme and the name Jack,” he said.

“I’m sure ToniJack’s products taste better than our competitors’. So our tagline is ‘better than that one,’ ” he said, laughing.

As sampled by the Jakarta Globe, the offerings at ToniJack’s appeared not unlike those at a McDonald’s, and included multi-decked burgers, spicy chicken and french fries.

However, while the buns and burger meat were similar, none of the trademark McDonald’s sauces were available. The packaging appeared basic, as did the food. The cheapest meal, the “Jack Chicken One,” retailed for Rp 15,000.

To rebuild his fast-food empire, Bambang is teaming up with Suryo Sulisto, the chief commissioner of the Bakrie group’s crown jewel, PT Bumi Resources.

“By 2014, if we have 100 outlets like [ToniJack’s Sarinah outlet], we could go public,” he said.

Amir Karamoy, the chairman of the Indonesian Franchise Association (AFI), welcomed Bambang’s move to launch the local brand.

“I’m optimistic it will become a leading franchise and will be able to compete with other established fast food giants,” he said.

McDonald’s marketing and communications director, Dian Supolo, also welcomed the new arrival.

“We are looking forward to healthy competition with the new brand,” Dian said.