Revolutionizing Retail: The Rise of Alfresco Dining in Indonesia
Unveil the reasons behind the rise of alfresco dining in Indonesia's evolving retail scene
2 minutes to read
After the pandemic, retail emerges as one of the prospective investments in the property sector. In Jakarta, the post-pandemic retail landscape has seen new adaptations, with a growing demand for greener, open-air spaces that are flexible for social interaction. The shifts in working and living patterns, catalyzed by the pandemic, have exerted further pressure on traditional investment landscapes, particularly within the retail sector, identifying new potential specifically in the form of alfresco dining.
This concept, born during the pandemic, offers outdoor food and beverage retail spaces with more flexible options. Presently, Indonesia's retail alfresco dining sector is witnessing a remarkable surge in popularity. Consumers are increasingly drawn to the allure of outdoor dining, and the prospect of socializing amidst lush greenery rather than within the confines of crowded indoor settings.
Since its inception in late 2020, Knight Frank Indonesia has been closely monitoring the rise of alfresco dining concepts in various areas of Jakarta, with North Jakarta serving as the initial epicenter. This trend has gained momentum, with at least 10 new alfresco dining establishments springing up in 2023 alone, excluding those in Jakarta’s satellite cities. However, despite the promising trajectory, the alfresco dining retail sector in Jakarta faces its own challenges. The key challenge is the need to innovate in response to evolving market demands, particularly in light of the lingering economic effects of the COVID-19 pandemic.
As consumer purchasing power gradually rebounds, industry players must adapt and cater to shifting preferences. This requires a keen ability to anticipate and respond to consumer trends and environmental dynamics. For example, consumers are now more focused on experience-based spending rather than just commodity purchases. There is growing demand for health-conscious offerings, private label brands, and unique retail experiences that blend entertainment and shopping.
With regards to the alfresco dining scene in Jakarta, there is a growing preference among consumers for open-air, European-style cafes and restaurants that offer a respite from the bustling city. These establishments have become popular oases, featuring rows of cafes and two-story restaurants with multiple stalls situated amidst the city's skyscrapers. Biophilic design trends are also taking hold in the Jakarta restaurant industry, as operators aim to create an "urban oasis" experience. By incorporating natural elements like plants, wood, and stone, and maximizing natural light and airflow, these establishments seek to establish a connection between the dining experience and the natural world. Furthermore, the rise of social media has heightened consumer expectations for alfresco dining spots to have a visually appealing, "Instagrammable" design. Features like potted plants, vertical gardens, flower arches, and lush vines are now essential in creating the picturesque ambiance that diners crave for their social media feeds.
Moreover, securing robust investor support will be instrumental in fueling the continued growth of the alfresco dining retail market in Indonesia. With the potential for expansion into diverse market segments, this burgeoning sector holds the promise of reshaping the retail landscape in profound and exciting ways.