<![CDATA[The rapid growth of Indonesia’s culinary industry has intensified competition among local micro, small, and medium-sized enterprises (MSMEs). This study aims to analyze the adaptive business strategies implemented by traditional culinary MSMEs to remain competitive amid changing consumer trends, particularly among Millennials and Generation Z. Employing a descriptive qualitative approach supported by a literature review and interview data, this study identifies innovation and digitalization as the primary drivers of market competitiveness. The findings reveal that although traditional foods continue to hold significant cultural value and maintain consumer appeal, many MSMEs face challenges in adopting digital technology due to limited digital literacy, human resources, and access to digital platforms. Practical strategies for addressing these challenges include the use of simple and user-friendly digital tools, capacity building through training, and collaborative support from local governments. Product innovation also plays a crucial role, particularly through transforming traditional foods into modern-style desserts without eliminating their cultural identity. This fusion approach combines local authenticity with modern presentation and flavors, enabling MSMEs to expand their market reach while preserving traditional values. Ultimately, adaptive strategies that integrate technology, cultural identity, and consumer-oriented innovation can strengthen the sustainability and competitiveness of local culinary MSMEs in the modern culinary industry.]]>
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