Performance of Indonesian restaurants: An analysis of halal supply chain management

Abstract

The purpose of this study is to determine whether restaurants in Indonesia are prepared to sell the products compliant with Islamic Sharia and the Halal Assurance Regulation in supply chain management. The study employed a qualitative case study approach, focusing on halal restaurants located in 10 Indonesian halal destinations. The study's findings indicate that halal restaurants’ performance requires a halal traceability mechanism that is integrated into supply chain management (SCM) activities. This halal supply chain tracking capability works from downstream to upstream to ensure that each stage of the process of converting raw materials to finished food and beverage products complies with the halal SCM specifications. The halal assurance regulation is also one of the policies and incentives that encourage restaurants to increase the value of each product they produce to support Indonesia's halal tourism. At a halal-certified restaurant, every tourist and restaurant visitor will undoubtedly find comfort and other benefits.