How to Open a Restaurant in Bali: A Guide for International Brands

 

1. Introduction

Bali is one of the most popular places in the world for travellers. Every year, millions of people visit. Many are tourists who want special experiences. Some are wealthy and want luxury dining. Others are young travellers who like new and casual food spots. Because of this mix, Bali is very attractive for international restaurant brands.

However, opening a restaurant in Bali is not the same as opening one in your home country. You cannot just copy your menu and your design and expect it to work. Bali has its own rules, its own culture, and its own ways of doing business. There are many steps to complete before you can open the doors. You must get permits and licenses. You must work with local partners. You must adapt your concept so it fits the island market.

This guide will explain those important steps. We will show what you must know about permits, local partners, design choices, and how to make your menu work on the island. If you come with the right plan, Bali can be a very profitable and exciting place to grow your brand. If you do not plan well, the process can be slow, costly, and frustrating.

 

 

2. Why Bali is a Hotspot for International Restaurants

Bali is attractive for restaurant brands for many clear reasons. Below we explain each reason in simple terms and show what it means for your business.

Rising tourism with many types of visitors

Bali receives both wealthy travellers and budget travellers. This means there is demand for many kinds of restaurants:

  • Luxury travellers want fine dining, private dinners, and tasting menus.

  • Holidaymakers want beach clubs, healthy cafes, and family-friendly spots.

  • Backpackers and digital nomads look for casual, affordable, and trendy places.

This wide audience lets you choose a clear niche. But it also means you must know who exactly you serve. The right location and price must match your chosen guest type.

International crowd with diverse food expectations

Visitors come from many countries. Some want local Balinese or Indonesian food. Others want familiar western or Asian dishes. Many want new flavors and experiences. Your menu must be both reliable and interesting. It should offer comfort dishes and signature items that create excitement.

Growing luxury hospitality: resorts, villas, and fine dining

Many new resorts and private villas are being built. High-end hotels want fine dining partners. Villa guests want private chefs and curated menus. This creates steady business for brands that can deliver premium service and consistent quality. If your concept fits luxury guests, resorts can give a reliable flow of customers year-round.

But the market is very competitive

Because Bali is attractive, many brands come here. Local cafés, beach clubs, and international chains already exist. To succeed you must stand out. This can be through:

  • Unique menu items that are not widely available.

  • Strong brand story that connects with Bali’s culture or the guest’s travel mood.

  • Excellent service and consistent food quality every day.

If you do not offer something special, you may struggle to get repeat customers and good reviews.

What this means for international brands

  • Bali can offer great growth if you find the right audience and location.

  • You must adapt your menu, price, and service to the island market.

  • You should prepare for strong competition and higher expectations from tourists.

  • Working with local experts helps you avoid common mistakes and speeds up the process.

 

3. Legal Framework for Opening a Restaurant in Bali

Before you open a restaurant in Bali, it is very important to understand the legal structure. Indonesia has specific rules for foreign investors, and if you are not aware of them, you may face delays or even penalties. Many international brands believe they can just register their company and start operating, but in Bali, the process is more layered.

Foreign brands that want to open a restaurant usually need to set up what is called a PT PMA (Perseroan Terbatas Penanaman Modal Asing). This is the legal structure that allows foreign ownership in Indonesia. Without this entity, you cannot directly invest or operate a business. The PT PMA process involves clear documentation and approval from Indonesia’s Investment Coordinating Board (BKPM).

In some cases, depending on your investment type and location, you may also need to work with local shareholders or partners. While the PT PMA allows for 100% foreign ownership in many food and beverage businesses, having local connections can make approvals and ongoing operations smoother. This is because many processes also require direct interaction with local authorities at the regency (kabupaten) level.

Along with the company registration, you will also need several industry-specific licenses. These include the NIB (Business Identification Number), a Tourism License if you are opening in a hospitality zone, and specific Food & Beverage permits that confirm your business meets Indonesian standards. Each of these requires careful application and proper documentation.

Finally, it is important to note that different regencies in Bali may have slightly different interpretations and processes. This means approvals and requirements can vary depending on where exactly you want to open your restaurant. Navigating this system is not always easy, and this is where local expertise becomes very valuable.

 

4. Licensing & Permits You’ll Need

Once your PT PMA is in place, the next step is to get the necessary licenses and permits to actually operate your restaurant. This is a detailed process, and missing even one step can delay your launch. Below are the key permits you will need:

  • Business Registration (OSS System): Indonesia uses an online system called OSS (Online Single Submission) for business registration. This system issues your NIB and links your business to tax and social security requirements. It is the foundation for all other permits.

  • Building Permit (IMB) or Updated Equivalent: If you are constructing or renovating your restaurant space, you must have a valid building permit. Bali has strict zoning rules, especially near beaches, temples, and residential areas, so compliance is essential.

  • Operational Licenses for Food & Beverage: These include approvals from the Tourism Department and the Health Office to confirm that your restaurant meets hygiene, safety, and service standards. Without this license, you cannot officially serve customers.

  • Alcohol License: Serving alcohol in Bali requires a special permit, and this is one of the most difficult licenses to obtain. Rules are strict, and approvals are limited. Hotels and luxury restaurants are usually given preference, but the process requires careful handling.

  • Health & Safety Inspections: Your restaurant must pass inspections for kitchen hygiene, waste management, and staff facilities. Authorities check that your operations meet Indonesian health and safety standards.

  • Labor Permits for Foreign Staff: If you are bringing in chefs, managers, or other foreign staff, each person will need a work permit (IMTA) and stay permit (KITAS). These require justification of why a foreign expert is needed and proof that you will also employ and train local staff.

Getting all of these licenses can take time and requires regular communication with multiple government departments. This is often the most challenging part for international brands, because processes are not always clear and may change with new regulations. Working with experienced local consultants can make the difference between a smooth opening and months of delay.

 

5. Local Partnerships & Staffing

Working with local people is one of the most important steps when you open a restaurant in Bali. A good local partner and the right staff make daily work easier and keep your business legal and smooth.

Why a local partner matters

  • Makes approvals faster: Local partners know the offices, the people, and the steps to get permits. This saves time and avoids mistakes.

  • Helps with local rules: Local partners understand village rules, regency requirements, and where to get specific local permissions.

  • Builds community trust: A local partner can help you work well with neighbors, temple councils, and local suppliers.

  • Practical support: They can help with hiring, finding staff housing, and day-to-day operations when you are new to the island.

How to choose the right local partner

  • Do background checks. Meet their team and visit their existing businesses.

  • Agree clear roles in writing: who brings money, who manages operations, how profits are shared.

  • Check their local contacts: suppliers, contractors, and government contacts.

  • Start with a small test project if possible, before committing to a long-term deal.

Hiring local staff: training and culture

Hiring Balinese staff is usually the best choice. Local workers know the island, the language, and local customs. But they may need training to meet international restaurant standards.

  • Cultural adaptation: Teach international staff and managers about Balinese customs so the team works well together.

  • Training: Run pre-opening training for cooks, servers, and managers. Cover food safety, service steps, and guest handling.

  • Clear SOPs: Create simple Standard Operating Procedures (SOPs) for daily tasks so everyone follows the same steps.

  • Local manager: Hire at least one trusted local manager who can communicate with staff, suppliers, and officials.

Restrictions on foreign workers

  • You will need work permits and visas for foreign chefs or managers.

  • There are limits on how many foreign workers you can hire. Authorities often ask why a local person cannot do the job.

  • Use foreign hires only for roles that truly need special skills, and plan to train local staff over time.

Blending global expertise with local hospitality

The best restaurants mix international standards with local warmth. Use global recipes and training, but keep local flavors and friendly island service. This balance makes guests feel both impressed and welcome.

 

6. Market Fit: Adapting Your Concept to Bali

To succeed in Bali, you must match your restaurant idea to the island market. This means thinking about menu, price, location, design, and the exact guests you want to serve.

Menu considerations

  • Local tastes: Offer local dishes or local ingredients alongside your signature items. This appeals to tourists and respects the island food culture.

  • Tourist preferences: Include dishes that foreign visitors know and love, but add a local twist to make them special.

  • Dietary needs: Provide vegetarian, vegan, gluten-free, and child-friendly options. Bali has many health-conscious visitors.

  • Seasonal and local supply: Build a menu that uses items available locally to reduce cost and avoid supply problems.

Pricing challenges

  • Balance luxury pricing for tourists with value for locals. Too high and you lose repeat guests; too low and you cannot cover costs.

  • Use tiered pricing: a set menu, a few premium dishes, and value options like lunch specials.

  • Factor in imports, shipping, and taxes when you set prices. These add to costs in Bali.

Competition

  • Bali has many strong local cafés, warungs (small local eateries), beach clubs, and foreign brands.

  • To stand out, offer something unique: a signature dish, a special dining format, or a strong brand story.

  • Partner with villas and resorts for private events and steady bookings.

Location strategy

  • Seminyak: Busy, fashionable, good for beach clubs, upscale cafes, and nightlife.

  • Canggu: Trendy, many digital nomads, good for casual, brunch-style, and healthy-food spots.

  • Ubud: Cultural and wellness hub, best for quiet fine dining, plant-based, and experience-led restaurants.

  • Luxury resorts & beach clubs: Very good for private dining and high-spend guests — but often require partnerships and revenue sharing.

Ambience & design: experiential dining is key

  • Design should match the island vibe: use natural materials, open-air layouts, and local craftsmanship.

  • Create memorable moments: private cabanas, sunset tables, or interactive chef experiences.

  • Think about service flow: easy access for staff, quiet guest areas, and beautiful photo spots that guests will share online.

Bali rewards concepts that feel local, are well priced, and offer a memorable experience. Test your idea with a pop-up or limited menu first. Adjust quickly based on guest feedback.

 

7. Common Mistakes International Brands Make

Opening a restaurant in Bali can be very rewarding, but many international brands often make mistakes that cost them time, money, and reputation. One of the biggest mistakes is ignoring the local bureaucracy. The legal and licensing system in Indonesia can be complex, and if paperwork is not handled correctly, it can lead to long delays in opening. Many businesses underestimate this part and end up spending months stuck in approvals.

Another common mistake is underestimating cultural nuances. Bali is not just a tourist hub, it has a deep cultural identity. Restaurants that don’t respect or adapt to local customs often fail to connect with both locals and even tourists who come looking for authentic experiences. Simply importing a global concept without any local touch can make a brand feel disconnected.

Mispricing is also a big challenge. Some restaurants price too high and alienate local customers, while others price too low and lose appeal with luxury-seeking tourists. Balancing luxury with value is critical in Bali’s mixed market. Along with this, many brands struggle to differentiate themselves. The market is already full of beach clubs, cafes, luxury resorts, and restaurants, so opening a generic concept without something unique usually leads to failure.

Finally, sourcing is often overlooked. Some brands rely too heavily on imported ingredients, which leads to higher costs and supply issues. Others fail to build strong relationships with local suppliers. A weak sourcing strategy can impact both food quality and profitability in the long run.

 

8. How Zion Hospitality Helps International Brands Succeed

Zion Hospitality understands these challenges and helps international brands succeed in Bali by offering complete, end-to-end support. The team assists with permits, compliance, and licensing so that brands don’t get lost in the paperwork and bureaucracy. Their local experts make the process smooth and efficient, saving businesses from unnecessary delays.

Restaurant infrastructure in Bali can also be different from other parts of the world. Zion helps design kitchens and dining spaces that are both practical for Bali’s environment and meet global standards. They also help with hiring and training, creating teams that blend local hospitality with international expertise. This ensures that customers get the right balance of cultural warmth and professional service.

Another major area where Zion provides value is in market strategy. They help brands choose the right location, whether it’s the luxury market of Seminyak, the spiritual and cultural hub of Ubud, the trendy spots in Canggu, or within high-end resorts and beach clubs. Zion also guides menu strategy, pricing, and positioning to make sure the brand stands out in Bali’s competitive dining scene.

Zion acts as the bridge between global standards and Bali’s unique local market. With their expertise, international brands can confidently enter Bali without making the common mistakes that others often do.

 

9. Conclusion

Bali is one of the most exciting restaurant markets in the world. It offers huge opportunities but also comes with unique challenges. Without the right guidance, international brands risk running into delays, high costs, and even failed ventures. Local expertise is not optional here, it is essential.

By partnering with Zion Hospitality, global restaurant brands get the right foundation to thrive. From legal permits to smart location selection, from staff training to concept adaptation, Zion makes sure every step is handled with precision and care.

Planning to launch a restaurant in Bali? Partner with Zion Hospitality to make your expansion smooth, compliant, and successful.