The demand for halal certified restaurants in Indonesia

Abstract

Rapid urbanization that lead to busier lifestyles with longer work hours has increased consumer demand for convenient restaurants. Since Indonesia has a large Muslim population, this research aims to find out the demand for halal certified restaurants by analyzing the influential factors involved in consumer decision to patronize halal certified restaurants based on the Theory of Planned Behavior. By using Structural Equation Modeling, this research analyzed 149 data of respondents in South Jakarta. The finding indicates that Muslim consumers in Indonesia are becoming more conscious about halal certified restaurants and it is not simply because of Muslims obligation to obey Islamic rules, but it is also influenced by their attitude, subjective norm, perceived behavioral control, and intention before they decided to patronize halal certified restaurants. This research not only verified the high demand of halal certified restaurants in Indonesia but also provide a better understanding about Muslims' dietary rules that should be understood by the restaurants' owner and manager in order to produce products and services that in accordance with halal rules. It is also gathered that although the demand for halal products and services in the hospitality industry is growing, not many researches pertaining to halal certified restaurants. This research also suggested that the industry players and government need to work closely to facilitate halal compliance for the rising of halal products and services demand especially in hospitality industry.