The social network
Shirley Christie | May 07, 2011

The brains behind hip Jakarta haunts such as Blowfish and Social House - Christian Rijanto, Brian Sutanto and Bram Hendrata - tell Globe Asia what’s cooking in their kitchen. 

A long-line of customers is queuing at a spot that was a mere walkway two months ago. Couples, families and colleagues are all keen to buy an ice-cream that ironically can be bought pretty well anywhere. A group of office women in their 20s waits eagerly behind a European couple.

“Look at this long queue for ice cream,” says one woman, amazed. “It’s called creative when an ice cream worth Rp10,000 becomes a more expensive creation,” replies her friend. The new Magnum café is just one example of the Ismaya Group’s ingenuity.

Together with Unilever, the Ismaya Group has made the three-month-old concept based on one of the world’s most popular ice cream brands a winner. In less than a decade, the group has become a household name in Jakarta’s middle and upper classes through establishments such as Blowfish, Social House, Kitchenette, Pizza e Birra, Sushi Groove and many more.

Today, it has a total of 29 outlets. “We got into the business when we opened Blowfish at the end of 2002,” recalls Christian Rijanto, who heads the group’s marketing operation.

“Nine years ago, there were no places to hang out and eat fine sushi in Jakarta,” he says, adding that Jakarta was under-appreciated as a tourist destination at the time. “It became a hit and we were encouraged to open other businesses,” he says.

Restaurant and bar Social House has received a lot of good feedback from international media and spurred foreign business operators to open franchises under Ismaya’s supervision. One franchise in Dubai opened last year.

“We will open another Social House in Mumbai soon, followed by Singapore, Malaysia and other countries in the region,” says Bram, who handles Ismaya’s operational management. The 35-year-old chemical engineer adds that the group will maintain one outlet per city for a concept like Social House, while other concepts will suit multiple outlets.

Brian, a Stanford-graduate who mostly manages the financial aspects of the company, says that in terms of revenue the group still considers their business relatively small.

“Restaurant businesses have small profit margins,” he admits. Competition in the restaurant business is tough, but the company manages to maintain a 30% annual growth rate, a signal there is room to grow, says Brian.  

Hungry marketplace

Indonesia’s food and beverage industry has grown significantly over recent years, along with growth in shopping malls, especially in the capital and other major cities. Cushman & Wakefield's report Asia Pacific Office Market Overview and Outlook released last February notes that the existing players in the retail sector are expected to open additional outlets and more foreign retailers will enter the market this year due to “continued growth in both population size and wealth demographics in Jakarta.”

Furthermore, it states: “Food and beverage retailers are expected to continue dominating leasing demand within Greater Jakarta.” Christian says the Ismaya group wants to compete with global players and grow not just as a household name across the nation, but also within the region.

Bram, whose wife's name is Ismaya, adds that in order to survive in the highly-competitive restaurant business, the group must keep expanding in volume. “Once you stop growing, you are declining,” he muses. As the company grows, it is also targeting a bigger slice of the middle economy.

This year, the company will create five new F&B concepts and open at least 12 new outlets out of its existing portfolios. One of the concepts will be iconic for Jakarta, says Christian, as it will be located in the heart of the capital and offer unique scenery.

“People will definitely notice it because it will be located in the highest building in Jakarta,” he says, without mentioning the BNI 46 tower. He declines to divulge further information, saying the group wants to maintain an element of surprise. The trio admits they research by traveling and eating in different countries to enrich their taste buds and stimulate more ideas.

Teges Prita Soraya, senior marketing manager at Grand Indonesia, applauds Ismaya for its innovative concepts and consistent quality. “They are really up to date with culinary trends and always think carefully about their brand positioning,” says Teges.

Fetty Kwartati, corporate secretary and head of investor relations at Mitra Adi Perkasa, is also familiar with the Ismaya group. “In my opinion as a customer, I think they are really innovative and clever in recognizing the market momentum that is currently absorbing such lifestyle concepts,” she says.

Mitra Adi Perkasa is probably Ismaya's closest competitor as a lifestyle retailer. The listed company also carries several international food and beverage brands including Starbucks, Burger King and Domino's Pizza.

The Jakarta-based company will also expand its F&B business, which is expected to contribute 15% to consolidated revenue by 2014, up 4% from last year.

“We will open more stores from our existing brands so that they will become more efficient,” says Fetty.

Built from scratch out of its owners’ pockets, Ismaya has grand plans, including expanding into property and hospitality within the next two years. Most recently the company added an event organizer to its portfolio by establishing Ismaya Live about a year ago.

“One of our projects, Blackberry Live by Research In Motion Asia, created about 30,000 check-ins on Foursquare. It's probably the biggest concert check-in ever in history,” says Christian, who says an IPO is not out of the question in the next five years.  “In short, we want to see people eat, celebrate and live with Ismaya,” he concludes. GA

Post a comment
Please login to post comment

Comments

Be the first to write your opinion!