ColumnsWhy invest in restaurants in bali

Why invest in restaurants in Bali

If you've always wanted to open your restaurant but the initial costs seem too high in your home country, Bali may be the perfect pl...

Jorben Saaltink
02 May 2024 - 3 min read

Why invest in restaurants in Bali

If you've always wanted to open your restaurant but the initial costs seem too high in your home country, Bali may be the perfect place for you. You might be surprised to learn that many people who open restaurants in Bali are not in the food and beverage industry; they are investors who recognize the possibility of a high return on investment (ROI) that Bali restaurants can offer.

In addition, Bali has emerged as the world's top dining destination thanks to the outstanding assistance of the Indonesian Investment Board and Tourism Board. Thus, it is evident that, with proper planning, launching a restaurant in Bali is an assured route to profitability. You're at the right spot if you're unsure how to open your first restaurant in Bali.

Why Restaurants are profitable in Bali

1. Tourism Population

Due to its appeal to tourists and foreigners, Bali presents a potential market for a restaurant business. There is a regular supply of prospective clients due to the rising expat community and the frequent influx of tourists. Travelers frequently look for various dining experiences, opening doors for inventive restaurant ideas.

2. High ROI Potential

Due to Bali's booming tourism and unique culinary scene, investing in the restaurant business has the potential to yield a high Return on Investment (ROI). A restaurant may become profitable quickly with a well-thought-out idea and clever market placement. Due to Bali's appeal as a travel destination, there is always a steady stream of prospective clients looking for unusual eating experiences. A restaurant may recover its original investment in six months if it successfully grabs the market.

3. Global Food Trend

Bali's restaurant industry is a lively and appealing venture because of its fast incorporation of international trends in cuisine. The island is known for quickly absorbing and changing to accommodate global culinary trends, especially in places like Canggu. By presenting cutting-edge ideas in line with international culinary trends, investors may profit from this trend-savvy industry. A restaurant may draw in a wide range of clients looking for unique and visually appealing eating experiences if it keeps an eye on the latest culinary trends.

4. Bali Culture

The rich cultural variety of Bali makes investing in restaurants appealing. The island's diverse culinary landscape reflects the unique blend of customs and influences. Providing diverse eating experiences that appeal to both the local population and the global community is a draw for investors. Bali's cultural tolerance allows experimenting with unusual tastes and cooking techniques. In addition to expanding the pool of possible clients, this cultural variety offers a platform to highlight the inclusive and friendly environment of the island. Putting money into a restaurant honoring and valuing Bali's rich cultural diversity might result in loyal customers looking for authentic and interesting eating experiences.

Challenges and Risk of Investing in Restaurants in Bali

Despite many pros, investing in restaurants in Bali has downsides. Knowing these risks allows investors to have a flexible plan. Here are some of the challenges and risks you're likely to encounter with:

1. Competation

The restaurant business in Bali is quite competitive, particularly in places like Canggu. Canggu is home to many new restaurants, with new ones opening up practically every month. Due to this saturation, businesses must compete for clients' business and loyalty. This is a sign of a thriving culinary industry, but it makes it difficult for newcomers to stand out.

2. Seasonal Variability

The seasonal swings in Bali's restaurant business can be attributed to the island's visitor trends. Peak tourist seasons, which frequently coincide with holidays and pleasant weather, bring in a large influx of customers and increase restaurant sales. However, there is a noticeable drop in tourists during off-peak hours, which affects business. Restaurants must learn to ride these ups and downs, modifying their operations and marketing plans.

3. Operational Challenges

Running a restaurant in Bali has its difficulties. Successful restaurant management demands a deep understanding of local quirks and compliance with Bali's business laws. Furthermore, businesses are exposed to outside variables like health problems because the industry relies on tourism.

To ensure long-term viability in Bali's competitive restaurant industry, strategic planning, good personnel training, and the capacity to remain flexible in response to market swings are necessary for successfully navigating these operational hurdles.

Legal Documents required to start a Restaurant in Bali

Here are some of the legal documents you may need:

  • ID/Passport
  • Complete application form
  • Company Incorporation
  • IMB permit
  • Copy of Environmental Impact Analysis AMDAL

Licenses needed to start a business in Bali

Here are some of the licenses you may need:

  • Health and hygiene license
  • NPPKBC/SIUP-MB if you will sell or produce alcohol
  • Tanda Daftar Usaha Pariwisata (TDUP) (or restaurant license)
  • Intellectual property licenses: This entails if your business will play pre-recorded music
  • Alcoholic Beverage Trading License
  • Investor KITAS: A visa enables you to remain in Indonesia and conduct lawful business operations, but it is not the same as a business license.


There you have it! A complete guide on everything you need to know when investing in restaurants in Bali. Opening a restaurant in Indonesia, especially in areas like Bali, is a lucrative opportunity for foreign investors. Before investing, it is crucial to have a solid business strategy, do extensive market research, and comprehend the local business landscape. In Bali's restaurant business, one may improve chances of success by diversifying risks, remaining flexible, and providing a distinctive value proposition.