F&B Business: Definition, Types, and Tips to Start in 2025

Some people are already familiar with the term F&B (Food and Beverages) business, which is another name for the culinary business. 

The culinary industry is favored by both professional entrepreneurs and those interested in starting a business. 

This is because the F&B industry offers a wide variety of products that attract buyers and still has room for continuous innovation.

To expand your knowledge of the F&B business, this article will discuss its definition, types, and several tips for starting an F&B business.

Definition of the F&B Business

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From its origin, the F&B business is defined as a business in the food and beverage sector, covering various scales of operations. 

It is often referred to as the culinary business, which does not only involve selling food or drinks but also providing a unique experience for customers.

All businesses that involve food and beverages, including fast food, cafés and coffee shops, snacks, and other street food vendors, fall under the category of food and beverage businesses.

The F&B business sector is highly popular among many people—not only because it can be run on both small and large scales but also due to the substantial profits it can generate.

15 Types of F&B Businesses

The F&B industry is incredibly diverse, ranging from snacks, traditional Indonesian food, Western food, coffee shops, warmindo (instant noodle warung), street vendors, and many more. 

These businesses can be categorized into the following 15 types:

1. Culinary MSMEs

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Micro, Small, and Medium Enterprises (MSMEs) are small-scale or home-based businesses managed by individuals, groups, or specific institutions. 

A business is considered an MSME if it has assets ranging between 50 to 500 million rupiahs annually.

According to BPS (Indonesia’s Central Bureau of Statistics), there were approximately 1.5 million culinary MSMEs in 2022.

With this significant number, culinary MSMEs still have opportunities for growth, as the GDP of the F&B industry grew by 4.62% in Q2 2023 compared to the previous year.

2. Restaurants

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A dining establishment is called a restaurant if it meets certain standards in terms of hospitality, service, facilities, and ambiance.

According to Soekresno—a culinary expert—a restaurant is a commercial enterprise professionally managed with the purpose of offering food and beverage services to the public. 

There are various types of restaurants worldwide, including à la carte, table d’hôte, specialty, continental, family restaurants, cafés, canteens, terrace restaurants, discotheques, pubs, and grill rooms. 

Many of these can also be found in major cities in Indonesia.

3. Food Court

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A food court is typically a large dining area with multiple food vendors operating under a structured system and regulations. 

Food courts are commonly found in shopping malls, airports, office buildings, parks, and other public spaces.

In Indonesia, food courts are also known as Pujasera (Pusat Jajanan Serba Ada), which can be either indoor or outdoor and house multiple food stalls or booths.

Pujaseras may provide dine-in facilities or operate under a pay & go (takeaway) concept. They offer a wide variety of food, from main courses to light snacks and beverages.

4. Hotel F&B

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Not all hotels offer food and beverage services, but many provide restaurants open to both hotel guests and the general public.

Hotel restaurants typically follow different dining concepts compared to standalone restaurants. 

Five-star hotels often implement fine dining, table d’hôte, or table service with a complete menu package, including an appetizer, main course, dessert, and beverages. 

However, some hotel F&B services offer buffet-style or à la carte dining at more affordable prices.

5. Fine Dining Restaurants

Fine dining establishments provide the highest standard of service and serve premium-quality dishes with aesthetically pleasing presentations. The ambiance is elegant and exclusive, making them ideal for special occasions or business meetings.

6. Casual Dining

Casual dining restaurants offer a more relaxed atmosphere compared to fine dining but still maintain comfort. They typically have a more diverse menu and more affordable prices, making them popular for family meals or social gatherings.

7. Buffet Service

A buffet is a dining concept where customers can serve themselves as much food as they want. This model is commonly found in hotels, weddings, and all-you-can-eat restaurants.

8. Café and Coffee Shops

Cafés and coffee shops are popular hangout spots where people can enjoy coffee, tea, and light snacks. Some cafés also offer full meals and provide a comfortable space for work or socializing.

9. Fast-Food Restaurants

Fast-food establishments provide quick service and affordable meals, with typical menus including burgers, fried chicken, fries, and soft drinks.

10. Food Trucks

A food truck is a mobile food business operated from a modified vehicle. Food trucks are popular for their flexibility and are often found at festivals or designated locations.

11. Bistros

Bistros are small, casual restaurants that serve simple but delicious meals. They often feature a combination of local and international cuisine.

12. Pop-Up Restaurants

A pop-up restaurant is a temporary dining establishment operating for a limited time in a specific location. This concept is often used by chefs or new businesses to test out a concept before launching a permanent restaurant.

13. Family-Style Service

Family-style dining involves serving large portions of food to be shared among diners, much like a home-style meal. This type of restaurant is ideal for large families or group gatherings.

14. Room Service

Room service is a hotel-based dining service, where guests can order food and have it delivered directly to their room. This service offers convenience for guests who prefer to dine in privacy.

15. Catering Services

Catering businesses provide food for specific events, such as weddings, seminars, and parties. They offer customizable menus and sometimes include on-site service at the event location.

5 Tips for Starting an F&B Business

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Starting an F&B business requires extensive preparation, including capital, resources, a solid concept, and the right mindset. Here are five essential tips to help you get started:

1. Identify Your Target Market

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Targeting the market is the first and foremost thing to do when starting a business, including if you want to open an F&B business. Targeting the market is important because if you choose the wrong target, your F&B business may end sooner due to a lack of customers.

The target market you aim for will determine the strategic steps to be taken. It can also provide insights into innovating on products or services in your F&B business later on. 

Determining the target market will provide guidance on choosing the best location, product price range, suitable promotions, and marketing strategies to use.

2. Innovate Your Products or Services

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The vast opportunities in the F&B business attract many people to try their hand at culinary entrepreneurship. This makes the level of competition in the F&B business relatively high. 

Moreover, the number of culinary businesses in Indonesia has exceeded 11 thousand, meaning you will compete in the same market as many other culinary entrepreneurs.

 

To stand out among other F&B businesses, you need to innovate your products or facilities that support your business management. 

For example, try a POS system from ESB that integrates with online ordering systems (ESB Order) to provide convenience for customers.

3. Find the Best Suppliers

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The taste and quality of food and beverage products are key factors in the F&B business. 

One way to ensure this quality is to find and use the best suppliers. You can use the ESB marketplace, ESB Goods, which can be directly integrated with ESB POS or ESB POSLite.

This is especially important for F&B businesses operating on a franchise system. It will be difficult to ensure the availability of the same raw materials between outlets unless you use the Close Loop system available in ESB Goods. With this system, you can ensure that every franchise sources its raw materials from the same supplier.

4. Implement the Right Marketing Strategy

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Remember! No matter how good your product is, if many people don't know or have never heard of the brand name, it will be very difficult to sell the product. Therefore, you need to develop a targeted marketing strategy.

Regardless, a newly opened F&B business still needs to promote itself, whether on a large or small scale. Promotions have been proven to increase sales by between 10% and 50%. Conversely, reducing promotional costs will affect sales performance. Every 1.5% reduction in promotional costs will decrease sales volume by 1% (International Journal of Education and Research Vol. 7, 2019).

Promotions can be done at minimal cost or even for free. For example, free review promotions on the Ayomakan platform. Additionally, promotions can take the form of special offers for members at your restaurant. This way, customers will enjoy coming back repeatedly.

5. Manage Your Business Efficiently

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Your F&B business can be considered successful when operational management, resources, and finances are in good condition. Therefore, it is important to determine the business system, operational and resource management, and financial management to be used.

Good business and management systems can increase efficiency. Conversely, if efficiency is poor, company revenue can decrease by up to 30% per year. That's why as an F&B entrepreneur, you need to use ERP (Enterprise Resource System) tools like ESB Core to manage your business more efficiently.

An F&B business is not just about food or beverage production, there are many things to prepare, especially regarding operational management, resources, and good financial management.

Starting an F&B business can be easier with the help of specialized software that integrates ordering, recording, management, and reporting. Hopefully, the tips and reviews above will help you start your F&B business.