Ada Yang "Aneh" Dengan Tomoro Coffee

Summary

Tomoro Coffee, a rapidly growing coffee chain in Indonesia, stands out for its unique approach to business, blending technology and efficiency in the coffee sector. With a low-cost model and an ambitious goal of expanding to 2000 outlets, Tomoro is leveraging automation, streamlined operations, and a tech-driven supply chain to achieve profitability and scalability. Founded by former tech entrepreneurs with no F&B background, the company is challenging established competitors like Kopi Kenangan and Starbucks. Its strategic focus on cost-effective processes, fresh coffee at affordable prices, and customer loyalty programs positions Tomoro to disrupt the Indonesian coffee market and potentially lead the Southeast Asian region.

Takeaways

• 😀 Tomoro Coffee's rapid growth in Jakarta is unusual due to its low pricing, fast expansion, and the fact that its founder has no prior F&B experience.
• 😀 The real competition in coffee businesses isn't just about the product, but rather the operational efficiency, or 'store economics,' that drives profitability and scalability.
• 😀 Tomoro Coffee leverages technology to optimize every step of the business, from supply chain to customer relationship management (CRM), focusing on cost reduction and operational efficiency.
• 😀 Unlike traditional coffee chains, Tomoro uses automated machines (Eversys) to speed up the coffee-making process, lowering costs while maintaining quality.
• 😀 Tomoro's founder, Xing Wei Yuan (Star), previously worked in tech (J&T, Oppo), and applied his tech expertise to build a more efficient coffee chain.
• 😀 Tomoro’s business strategy is based on low-cost, grab-and-go coffee, targeting the mass market with affordable prices, undercutting competitors like Kopi Kenangan and Janji Jiwa.
• 😀 Tomoro was able to quickly gain market share thanks to investor funding, particularly from ATM Capital, which helped accelerate their expansion.
• 😀 Despite Indonesia's already mature coffee market, Tomoro's strategy focuses on the underserved lower-end market, especially targeting consumers used to cheap instant coffee.
• 😀 Tomoro plans to expand rapidly across Southeast Asia, aiming for 4,000 stores, drawing inspiration from China's Luckin' Coffee and similar regional players.
• 😀 The company's goal is to establish itself as the largest coffee chain in Southeast Asia, leveraging technology to maintain low operational costs and expand quickly.

Q & A

What is the main reason Tomoro Coffee has become successful in Jakarta?

Tomoro Coffee's success can be attributed to its strategic use of technology to optimize business operations and reduce costs. By focusing on efficiency and automation, they are able to offer quality coffee at lower prices, which appeals to a broad market segment.

Why is Tomoro Coffee's expansion strategy unique in the Indonesian market?

Tomoro Coffee's strategy stands out due to its approach of using automated coffee machines and a highly efficient business model. They also focus on expanding rapidly, with plans to open two stores per day and reach 2,000 stores in Indonesia.

How does Tomoro Coffee differ from other coffee chains in terms of operations?

Unlike traditional coffee chains, Tomoro Coffee leverages automated machines that reduce labor costs and increase operational efficiency. This allows them to keep product prices low while maintaining quality.

What is the role of technology in Tomoro Coffee's business model?

Technology plays a central role in Tomoro Coffee's business model by automating coffee-making processes, managing supply chains, and collecting customer data through their app, all of which contribute to cost reduction and improved customer experience.

Why did Tomoro Coffee choose to enter the Indonesian market first instead of China?

Tomoro Coffee decided to enter Indonesia first due to its large coffee market and consumer behavior, which offered an opportunity to validate their business model and optimize operations before expanding to China.

How does Tomoro Coffee cater to the local market in terms of pricing?

Tomoro Coffee caters to the local market by offering competitive pricing, including discounts through their app, which makes it accessible to a wider audience who might otherwise opt for cheaper coffee options like sachets.

What challenges might Tomoro Coffee face in the Indonesian market?

Tomoro Coffee faces the challenge of competing with established brands like Kopi Kenangan and Starbucks, while also needing to prove that their automated system can maintain quality and customer loyalty in the long term.

How does Tomoro Coffee's approach to coffee differ from other competitors in the market?

Tomoro Coffee's approach differs in that it uses automated machines that can deliver coffee quickly and consistently, allowing for lower operational costs and higher scalability, compared to competitors who rely on manual processes.

What is the importance of customer loyalty for Tomoro Coffee's business strategy?

Customer loyalty is crucial for Tomoro Coffee because it allows them to build a steady customer base that will drive repeat purchases. Their app-based system and referral programs are designed to foster this loyalty and track customer preferences.

What are the long-term goals for Tomoro Coffee as stated by their CEO?

Tomoro Coffee aims to become the largest coffee chain in Southeast Asia, with a target of 4,000 stores across the region within the next five years. They are focused on expanding rapidly while maintaining operational efficiency.