INSIGHTS
In Brief
- BrandPartner latest findings, “63.91% of respondents prefer to visit coffee shops over bakery cafes or co-working spaces.”
- The market value of coffee shops is estimated to be more than Rp4.8 trillion per year, with 40% of consumers prefer coffee-to-go shops.
- The biggest challenges to face in order to win the market and meet customer needs.
Coffee’s market continues to grow year after year. It is evident in our cities, towns, and culture, just as it is in statistics about the coffee shop industry. However, with a brand-new world emerging following the pandemic, coffee culture predicts some changes.
We conducted a poll of 169 respondents in Jakarta and have provided some key & fascinating facts about coffee shops that relate to both the sector and the most recent trends in Indonesia. We’ve broken them down to give you a better picture of coffee culture in 2022.
Promising Coffee Shops Industry in Indonesia
Coffee shops are emerging as a promising new business in Indonesia, as the country’s coffee consumers and enthusiasts continue to grow. Millennials and Generation Z are driving the rise in coffee consumption.
Toffin, in collaboration with MIX MarComm, published a study revealing that as of August 2019, Indonesia had 2,950 coffee shops, nearly three times the 1,000 outlets in 2016. This study only looked at franchised coffee shops in major cities, leaving out modern and traditional independent coffee shops in other areas.
The market value of coffee shops is estimated to be more than Rp4.8 trillion per year, with 40% of consumers prefer coffee-to-go shops.
The findings appear to be aligned with the results of our most recent survey, which found that “63.91% of respondents prefer to visit coffee shops over bakery cafes or co-working spaces.”
Coffee shops are more familiar to most people than other places to hang out, such as bakery cafes or co-working spaces. Many of them aren’t even aware of the difference. Of course, this can be a good prospect for someone looking to start a coffee shop. Because, no matter how powerful the competition, if you understand what the market needs, you will have a glimmer of hope.
Customer Brings New Culture in Jakarta’s Coffee Shops
As we stated above, Jakarta and other major cities in the country have been influenced by a new urban coffee culture since the turn of the century. It becomes an emerging business that appears like fungus during the rainy season. This is evidenced by the significant increase in the number of coffee shops and domestic coffee consumption over the couple years.
Customers have thousands of options for where to spend their time chatting and enjoying a cup of coffee. On the other hand, owners appear to be rushing to seize the opportunity to win customers’ hearts. Offering the best coffee, a contemporary coffee shop vibe, and a variety of delightful menu options.
Various complete facilities to meet all needs are also available. Starting with something as simple as a work area with nearly perfect equipment, smoking and non-smoking areas, and live music entertainment, which certainly adds value to a coffee shop.
Looking at the data above, you can see that we asked respondents where they thought the ideal place to hang out was. And it seems that they prefer to spend their time in a coffee shop that is located inside of a mall.
The majority of them—38.61%—prefer to visit coffee shops located inside malls, followed by stand-alone stores in residential areas (33.54%) and stand-alone stores in office areas (19.62%).
Malls are one-stop shopping, entertainment, and dining destinations, providing shoppers with a well-rounded experience for their time and money.
Customers prefer to hang out at coffee shops located inside malls because they can be combined with other activities such as grocery shopping, making other purchases, and so on. Obviously, this will support their activities.
Prepare Yourself For the Biggest Challenges
Coffee shops are great places to enjoy your morning brew, connect with friends, look for a good atmosphere, and get some work done. Let’s say it’s just a small part of why they enjoy coffee shops.
And when you do that on a regular basis, it inspires others – or perhaps you – to open your own coffee shop. But there’s something you should know about the coffee shop phenomenon in Indonesia.
The coffee shop industry is massive, making it both profitable and extremely competitive. When it comes to coffee shop owners, there are giants to compete with, but the good news is that there is still a strong demand for non-affiliated local coffee shops.
This is your chance to carve out a niche for yourself, but it will be challenging. You must be prepared for what it takes to run a coffee shop and the challenges that may arise.
When we asked respondents why they came to a coffee shop. The responses varied, but “57.99% of respondents came to coffee shops to enjoy their quality time.” They will choose to spend their weekends at a coffee shop, either alone or with friends and loved ones.
Meanwhile, 26.63% of respondents will go to cafes for their daily work needs, so they frequently visit on weekdays. Most of these customers are remote workers, students, or people who simply want to work from a cafe.
While coffee shop visitors’ drinking habits may change this year, the reasons they seek out coffee shops are likely to remain the same – with a few changes. As a business owner, you should consider what today’s coffee shop customer cares about.
Here’s What You Can Do to Satisfy Customers!
Our world is fast-paced, with consumers increasingly emphasising quality over quantity in many aspects of life. However, quality alone will not bring you customers. You should also be wary of specialty coffee servings.
Many customers will have had coffee at home. Many people are returning to coffee shops, and they may prefer a faster, more predictable brewing method, and so on.
It’s no secret that slow bars irritate people. Coffee shop owners would be wise to pay attention to this demand for convenience and seek solutions to meet the needs of the grab-and-go customer without sacrificing quality
The Best ‘Brewing-Experience’ Align with Product Qualities
Most individuals don’t just go to coffee shops for the caffeine; they also go there to catch up with friends, relax in the calm atmosphere, or reward themselves with a treat. However, cafés need to watch out for complacency.
Customer expectations are rising, in part thanks to Instagram, food blogs, and the growing tendency for foods and spaces to be photogenic.
Whatever works best for your brand will depend on your goals, marketing, and customers, whether it’s super-saturated monochrome colours designed for Instagram, plant-filled patios, or cosy and low-lit interiors that create a sense of intimacy.
But, regardless of the style you choose, it is critical to perform it well and communicate it consistently
How About the Menu Options?
Many changes are expected by 2022, and coffee shops must adapt. It’s not the time to open your grandmother’s coffee shop. You must target a customer base that values convenience, health, and quality.
Is a customer stuck with a breakfast tea or a sugary hot chocolate if they don’t want coffee? Or do you have any interesting options for them? While developing new menu items may appear daunting, coffee shops should view it as an opportunity.
The good news is that understanding your target market is the first step to success. By providing them with food and beverages that are created with them in mind, you may draw in repeat customers and potentially raise your profit margins.
Take a look at your shop’s design and menu. Consider whether your supply chains are aligned with the quality of your products. And start developing winning food and beverage items.
So finally, if you’re interested in starting your own coffee shop, you should know what you’ll need as well as your market expectations. Your to-do list will be long and complex, but each step is key to success.
Final Thoughts
“Being distinctive in the highly competitive coffee industry can be challenging. When it comes to the variety of coffee shops, there are many choices. To clearly define its market and differentiate it from big chains is the most important factor in this industry.
This can be done through market research and customer analysis. The process of determining needs and desires of the market is the basis for developing and improving a new product or service that will actually resonate with the target market which can help develop a stronger brand.”
– INDAH MULYANINGTIAS, ASSOCIATES
