Hospitality on the streets: A mixed-method study of indonesian street food micro-enterprises

Abstract

Street food vending is a vital and dynamic segment of the hospitality industry, empowering micro-entrepreneurs to secure sustainable livelihoods. These vendors cater to both local residents and tourists, serving as ambassadors of a destination’s culinary traditions, cultural identity, and historical heritage. Consequently, their success is not only crucial for the growth of the hospitality sector, but also for the economic empowerment and social development of communities in emerging economies. However, conducting research on street food vendors is notoriously challenging as they often operate within the grey economy. This study breaks these boundaries through a mixed-method investigation, with a quantitative survey of 300 Indonesian street food vendors, followed by in-depth interviews with 30 respondents from the quantitative sample. Drawing on Schumpeter’s theories on entrepreneurship, as well as theories on Social Capital and Human Capital, the study provides in-depth knowledge explaining ‘how’ and ‘why’ innovation, social capital, and human capital influences street food vendor business performance. Despite their size and informality, the performance of street food vendors is driven by several innovative business practices, including digital marketing, the adoption of online payment systems, and the establishment of strong links with local businesses and suppliers. This presents implications for Government policies aimed at: 1) the formalization and registration of businesses within the sector, and 2) supporting the capabilities and service quality of these micro-enterprises as key agents of food and cultural tourism within destinations.