Kopi Kenangan will Expand to Malaysia and Thailand Later This Year
The culinary startup Kopi Kenangan plans to expand to Thailand and Malaysia in the third or fourth quarter of 2021. The drink retailer with the grab and go concept will rely on fresh funds from series B funding of US$ 109 million or around IDR 1.62 trillion that was won in May 2020 for expansion.
Kopi Kenangan founder and CEO Edward Tirtanata has not been able to specify the amount of funds prepared to penetrate the Malaysian and Thai markets. However, “we already got US$ 109 million. That’s more than enough,” he said in a virtual editorial gathering, Tuesday (19/1).
He said that expansion to neighboring countries is one of the business focuses this year. However, Kopi Kenangan continues to monitor the development of the corona pandemic in the two countries. “If it is bad, the investment and the number of outlets are small. Vice versa, “he said.
Edward said, Malaysia and Thailand were chosen because of their culture or people’s interest in coffee similar to Indonesia. “We also see that consumers in both countries are ready to grab and go,” he said. Based on internal studies, customers in the two neighboring countries also like drinks with cream and milk.
Awaiting Momentum for Expansion in Malaysia
Currently, the company has started the process of recruiting workers in both countries. The menus and designs are also ready. “Just waiting for the momentum. After that, we are ready to find the location of the outlet,” said Edward.
In addition, Kopi Kenangan is targeting the construction of more than 400 stores in several cities in Indonesia, bringing the total to around 800 this year. The investment value is around IDR 200 billion.
Companies will rely on technology to find out which areas have the potential to be encroached on. So far, Edward has seen an increase in demand in residential areas during the coronavirus pandemic. This is due to the imposition of large-scale social restrictions (PSBB) and working from home, aka WFH.
In the past year, Kopi Kenangan has been aggressively building new outlets near the housing complex. “With this strategy, we have succeeded in mitigating the reduction in income in office areas. So, we want to open more shops in residential areas,” he said.
Achievements of Kopi Kenangan in 2020 and Target of 2021
However, the company realizes that quality and consistency are challenges in expanding both at home and abroad. Therefore, Kopi Kenangan is holding a training academy for 10 thousand employees and recruiting 1,500 new baristas.
“Our own outlet. So, we have the courage to invest to improve the capabilities of our employees,” said COO of Kopi Kenangan James Prananto. “We continue to instill quality and consistency in the organization.”
Over the past year, sales averaged four million glasses per month. The majority of purchases go directly to outlets, about 40% of which use the Kopi Kenangan application. Meanwhile, the number of users reaches one million. The number of transactions also increased by 100% in the last year.
Added 200 New Outlets Last Year
Kopi Kenangan also added about 200 new outlets last year. “We build shops that are easy to reach, so the majority of purchases are direct,” said Kopi Kenangan CMO Cynthia Chaerunnisa. The drink retailer also penetrated a new product, namely bread with the name Cerita Roti at the end of 2020.
This year, Kopi Kenangan wants to provide cookies and fried chicken. The company also plans to build an Indonesian coffee museum, at least one this year. Edward said that the company’s liquidity was safe during the Covid-19 pandemic because it had secured funding at the beginning of last year.
Kopi Kenangan has no plans to raise an investment round this year. “We feel the need to improve internally. We have to achieve targets first, then think about funding,” he said. Meanwhile, the listing of initial public shares or IPO is targeted in 2023.