Analysis Of The Application Of Franchising Systems In Street Food Businesses To Improve The Competitiveness Of Msmes

Beny Ariyanto; Sudarmiatin; Puji Handayati; Naswan Suharsono

doi:10.63922/ijeter.v3i04.2704

Beny Ariyanto Faculty of Economics and Business, Universitas Negeri Malang, Indonesia
Sudarmiatin Faculty of Economics and Business, Universitas Negeri Malang, Indonesia
Puji Handayati Faculty of Economics and Business, Universitas Negeri Malang, Indonesia
Naswan Suharsono Faculty of Economics and Business, Universitas Negeri Malang, Indonesia

DOI: https://doi.org/10.63922/ijeter.v3i04.2704

Keywords: Franchising, Micro-Franchising, Street Food, UMKM, Brand Identity

Abstract

This study aims to analyze the application of franchising systems in street food businesses and their impact on improving the competitiveness of MSMEs. Culinary MSMEs, especially in the street food sector, have high growth potential but face various challenges such as weak branding, inconsistent product quality, and limited managerial capacity. The franchising and micro-franchising models have emerged as potential strategies to overcome these challenges through operational standardization, management support, and brand strength. This study uses a qualitative approach with a case study method through in-depth interviews and observations of street food business actors who are franchisees. The results show that the implementation of SOPs, training, and supervision from the franchisor improve operational efficiency, product consistency, brand identity, and consumer trust. In addition, franchising has been proven to expand market access, increase sales, and help street food businesses move upmarket. However, the study also found challenges such as limited innovation, dependence on the franchisor for raw materials, and the burden of royalty fees. Overall, the franchising system has proven to be an effective strategy for increasing the competitiveness of MSMEs in the street food sector through a combination of standardization, brand strengthening, and ongoing management support.

References

Achman, A., & Yusuf, T. (2022). Development of franchise business in Indonesia: Trends and challenges.
Firmansyah, R., & Nugraha, A. (2022). Franchise growth and MSME-based economic acceleration in Indonesia. Journal of Indonesian Economic Development, 9(2), 134–148.
Hartono, A., & Wijayanti, S. (2020). Micro-franchising model for supporting micro enterprises in Indonesia. Journal of Small Business Development, 7(1), 54–66.
Hendrawan, D., Sari, N., & Gunawan, H. (2022). Franchise model supporting MSME growth and sustainability in Indonesia. Journal of Small Business and Entrepreneurship Development, 10(2), 45–58.
Hidayat, M., & Anshori, Y. (2020). Barriers of micro, small, and medium enterprises (MSMEs) in Indonesia: A case study approach.
Hidayati, S. (2023). Policy support and ecosystem development of the franchise industry
Ismail, R., & Rahman, F. (2020). Franchise business model for MSMEs in Southeast Asia: Lessons and implications for Indonesia. Asian Journal of Business and Management Studies, 8(1), 23–36.
Kusuma, H. (2023). Franchising as a strategic tool for MSME internationalization and long-term competitiveness. Journal of Global Business Strategy, 12(1), 58–72.
Lestari, D., & Prabowo, H. (2020). Adoption of franchise models among MSMEs in Indonesia: Opportunities and barriers. International Journal of SME Studies, 5(2), 101–115.
Lukman, R., & Prasetyo, I. (2022). Micro-franchising and cross-border expansion of MSMEs: Cultural and operational adaptation. International Journal of Small Business and Cross-Cultural Management, 9(2), 144–159.
Pertiwi, D., & Nugroho, A. (2021). Franchising in culinary MSMEs: Expanding competitiveness and market access in Indonesia. Journal of Culinary Business and Innovation, 5(3), 112–124.
Putri, A. M., & Setiawan, H. (2022). Challenges of MSMEs in Indonesia in the digital era.
Rachman, A., & Yusuf, T. (2022). Development of franchise business in Indonesia: Trends and challenges. Journal of Entrepreneurship and Business Innovation, 8(3), 210–224.
Rahmawati, N., Santoso, B., & Lestari, D. (2021). Culinary MSME development for sustainable economic growth in Indonesia.
Ramadhani, E., & Wibowo, H. (2021). Micro-franchising for inclusive economic growth in local communities. Journal of Community Economic Empowerment, 4(2), 88–101.
Santoso, A., & Widjaja, M. (2021). Competitive strategy of micro and small enterprises in Indonesia’s culinary sector. Journal of Small Business Performance, 4(2), 89–103.
Siregar, F., & Ananda, R. (2021). Micro-franchise strategy as a tool for empowering MSMEs in Indonesia. International Journal of Entrepreneurship and Small Enterprise Growth, 9(1), 73–85.
Suharto, B., & Kurniawan, F. (2021). Franchise model as a strategy to empower MSMEs in Indonesia. Journal of Small Business Strategy, 7(1), 33–47.
Sukidjo, & Kurniawati, D. (2020). Development strategy of micro, small, and medium enterprises (MSMEs) in Indonesia.
Sun, K. A., & Lee, S. (2019). Enhancing differentiation and brand identity through franchising: Evidence from small food enterprises. International Journal of Hospitality Management, 81, 120–128.
Tan, J., & Nugroho, A. (2023). International franchising strategy of Indonesian street food in Malaysia: Expanding through brand replication. Journal of Asia-Pacific Business Expansion, 5(1), 33–47.
Utami, D., Prasetia, N., & Hadi, B. (2022). Micro-franchising as a mechanism to support street food business sustainability. Journal of Culinary Micro-Business Studies, 3(1), 45–59.
Wijaya, R. (2023). The role of franchise models in enhancing brand trust and innovation among local MSMEs. International Journal of Entrepreneurship and SME Development, 11(1), 67–79.