Culinary Business Trends 2025: Millennials and Gen Z Are Turning to Local Brands

Imagine you open a small coffee shop on a quiet corner of the city.

You prepare beautiful latte art, design the space with a minimalist interior, and play a lo-fi playlist that makes the atmosphere feel “international.”

But to your surprise, the best-selling items aren’t your imported-style drinks — it’s your klepon latte and modern pisang goreng.

This shift in taste is no coincidence.

A recent Populix (2025) study reveals that Millennials and Gen Z now prefer local culinary brands over international ones.

About 34% of respondents purchase local products more often, and 26% say they always choose local brands because they feel more connected to the taste, values, and identity behind them.

Young consumers are no longer just buying food — they’re buying meaning: the story, the values, and the authenticity behind every bite.

Why Are Local Brands Now More Favored?

A few years ago, people thought only international brands were “cool.”

But today, the market direction has shifted.

Young consumers are proud to support authentic local culinary businesses — those with character and a clear identity, not just ones that follow trends.

According to Populix, there are four key reasons behind this phenomenon.

1. Authentic Taste and Consistency Are Everything

Source: techinasia.com / ioicitymall.com.my

For young consumers, flavor and consistency are the two most important factors.

Big promotions may attract customers, but consistent taste keeps them coming back.

In fact, 7 out of 10 respondents said they would return to a restaurant if “the flavor remains the same as their first visit.”

Brands like Kopi Kenangan, TUKU, and Janji Jiwa are prime examples. Despite rapid expansion, they maintain consistent quality and a signature local taste.

They’ve proven that with the right management, local flavors can compete head-to-head with global brands.

2. Visuals Matter — But Values Matter More

Young people may have grown up in the age of social media, but they’re not easily swayed by looks alone.

Female consumers tend to value Instagrammable presentation and packaging, while males focus more on pricing and accessibility.

However, both agree: brands with a strong story and purpose are more memorable than those that simply look good.

Source: Private Documentation

Take Seroja Bake, for example. Every pastry they make tells a story — a mission to use local ingredients and empower local farmers.

This kind of purpose-driven business helps build emotional connections with consumers.

“People don’t buy what you do, they buy why you do it.” – Simon Sinek

3. The Rise of Healthy and “Guilt-Free” Food

Source: Private Documentation

Today’s young consumers want to eat well without feeling guilty.

Populix reports a growing interest in low-sugar, preservative-free, and plant-based foods.

They want to enjoy desserts while still feeling healthy and responsible toward their bodies and the environment.

Examples include:

• Dessert shops offering low-sugar cakes now have a loyal following among young professionals
• Coffee shops with oat milk and plant-based menus are booming in cities like Jakarta, Bandung, and Surabaya.

This reflects a shift in mindset — from eating merely to satisfy hunger, to eating to feel good.

4. Innovation and Loyalty Go Hand in Hand

According to Populix, 48% of respondents believe that regularly introducing new flavors is essential to stay relevant.

Young consumers get bored quickly. They crave new experiences — without losing the familiar taste they love.

That’s why brands like J.CO and BreadTalk remain strong: they continuously innovate while staying true to their product DNA.

Meanwhile, new players like Sambal Bakar Indonesia went viral by daring to create a new culinary category from a simple traditional dish

What Does This Mean for Culinary Business Owners?

For F&B entrepreneurs, this study isn’t just a report — it’s a strategic roadmap for the next 3–5 years.

Young consumers want authenticity, value, and sustainability.

The good news is that local brands can deliver all three — with the right strategy.

Here are three practical steps to start with:

1. Discover and Highlight Your Local Identity

Source: Private Documentation

Tell the story behind your recipes — the origins of your ingredients, the culture that inspires your dishes, and the people behind your brand.

Young consumers value honesty and originality more than perfection.

2. Use Data to Understand Your Customers

Dengan sistem digital seperti ESB POS dan OLIN, kamu bisa tahu menu mana paling laku, jam ramai pelanggan, hingga perilaku repeat order, semua berbasis data real-time. 

Dari situ, keputusan bisnis jadi lebih akurat dan cepat.

3. Innovate with Purpose

Don’t chase every viral trend. Each innovation should align with your brand’s values.

For instance, if your brand focuses on healthy dining, every new menu should reflect that commitment.

Case Studies

1. Consistency Builds Loyalty

A small coffee shop in Bandung maintained its original recipe for five years and earned a 4.8 Google rating without relying on heavy discounts.

2. Healthy Innovation Expands Markets

A dessert shop introducing low-sugar variants saw a 30% sales increase among women aged 20–35.

3. Local Stories Drive Engagement

An SME that showcased local ingredients in its social media content went viral organically — without paid advertising.

FAQ: About Culinary Business Trends 2025

1. Will this local brand trend last long?

Yes. Populix predicts it will continue to grow as young consumers become more conscious about identity and sustainability.

2. What’s the biggest challenge for local culinary businesses?

Maintaining taste consistency, managing human resources efficiently, and leveraging technology to streamline operations.

3. How can brands build loyalty among Millennials and Gen Z?

By fostering genuine, personal communication — using social media to tell stories, not just sell products.

4. Should local brands compete on price with big franchises?

Not necessarily. Focus on product uniqueness and customer experience. Price is just one small part of your brand’s overall value.

Conclusion

Culinary Business Trends 2025 mark a new chapter for local entrepreneurs.

Young consumers are no longer just buying food—they’re seeking experiences, meaning, and connection.

This is the perfect moment to strengthen your local brand identity.

With consistent flavor, relevant innovation, and efficient systems, your brand can grow into the next big name in Indonesia’s culinary industry.

Want to understand young consumers’ behavior and apply it to your business strategy?

Learn how to build a culinary business from scratch with experienced mentors at Foodizz Academy through the Culinary Business Mentoring (MBK) program.

This class will help you understand the mindset of Gen Z and Millennials, and craft a brand strategy that’s strong and enduring.

And to keep your business operations organized and efficient, use ESB POS and OLIN by ESB, digital systems that make it easy to track transactions, inventory, and outlet performance in real time.

With the right technology, your business becomes more measurable, efficient, and ready to adapt to changing trends.