Kopi Kenangan: How Indonesia’s beloved coffee chain proved naysayers wrong
Indonesia’s fast-rising coffee chain Kopi Kenangan is taking on the Southeast Asia and India markets.
And it’s brewing a strategy for success quite unlike its mass-market rival Starbucks’: by understanding what makes each coffee-loving market unique.
Business, after all, is all about people. And a successful business like Kopi Kenangan knows how to listen to people and put their preferences at the heart of product development.
After seven years of offering premium coffee in Indonesia, Kopi Kenangan today has become a unicorn startup thanks to the backing of influential celebrities like tennis star Serena Williams and rapper Jay-Z.
Behind the flashy headlines celebrating its billion-dollar valuation, the uniqueness of using locally sourced ingredients is what gives the coffee chain a distinct feel wherever you buy a cup.
Kopi Kenangan’s rapid expansion and growth
Whereas Starbucks aims to offer consistency in every one of its 38,000+ stores across the world, Kopi Kenangan wants to get to the heart of every market – infusing and developing flavours and blends based on the local coffee scene, CEO and co-founder Edward Tirtanata says.
Having an authentic, local vibe remains an important aspect of Kopi Kenangan’s business strategy at a time when hypergrowth has led to its rapid expansion into new markets.
The coffee chain will be opening its first store in the Philippines in October and is preparing to enter India early next year. All this comes on the heels of its recent debut in Malaysia and Singapore.
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Success ‘starts from the heart’
This passion for going local and celebrating the familiar and the nostalgic is reflected in Kopi Kenangan’s own corporate culture of “Mulai dari Hati,” where everything “starts from the heart”.
In fact, the proverbial heart is a central metaphor in the origin story of the company, having been born out of the memories of a former love.
The phrase, “starts from the heart,” which has become a mantra for employees, is said to capture what drives the team: “the heart we put into every cup, the connections we build with our beloved customers (or so we called it para Mantan), and the passion that drives our growth”.
While the beloved coffee chain is getting ready to “expand and innovate,” it also promises to “always stay true to [its] roots”.
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Brewing courage
Tirtanata knows the power of creative passion very well, having defied the odds and the naysayers with his determination to grow Kopi Kenangan and take it global.
“When I first shared my vision of making Kopi Kenangan the largest coffee brand in Indonesia, many regarded me as delusional, responding with scepticism and doubt,” Tirtanata recalled.
“[In] 2018, upon securing our initial institutional funding, with merely eight stores to our name, people questioned the substantial backing behind a coffee chain talking about ex-girlfriend memory.”
Yet, far from shying away from this playful take on love, loss, and longing, Kopi Kenangan ran with the idea and built the brand around it, often naming products in a quirky and endearing way, such as "memories of your ex" or "memories of the old days". The move resonated with the younger coffee-drinking crowd.
Then the COVID crisis hit.
“The pandemic brought forth unprecedented challenges, with many speculating it spelled the end for us, alongside the broader turmoil within the hospitality industry,” he said.
Tirtanata continued to encounter doubt from those around him: “Our expansion into Malaysia was met with a tempered response; many assumed we might, at best, establish a handful of stores catering to Indonesians abroad.
“A year later, defying scepticism, we ventured into Singapore, a market dominated by established competitors from developed markets. Most observers believe that Singapore is a tough market to crack,” he said.
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Looking beyond the constraints
Months into the journey, however, Kopi Kenangan is now an integral part of Singapore’s bustling coffee culture.
While success never came easy, Tirtanata believes he and his team are ready to introduce Indonesian coffee to the world, taking with them the lessons from their initial challenges.
Today, the Indonesian chain is serving up 5.5 million cups monthly and has quadrupled its store count post-pandemic.
“This journey teaches us a valuable lesson – never allow others to set your limits,” Tirtanata said.
“Look beyond the constraints others may see, stay focused, and persevere towards your vision. Your determination and grind will ultimately lead to your goal.”