DULUNYA RAMAI KENAPA SEKARANG BANYAK GERAI UPNORMAL YANG BANGKRUT ?

Summary

Warung Upnormal, a popular café brand in Indonesia, initially gained success by targeting young adults with its affordable yet unique offerings like Indomie and local snacks. Founded in 2014 by Rexmarindo, the brand quickly expanded to over 85 locations by 2019. However, the COVID-19 pandemic and high operational costs, especially rental fees, led to a decline. Many outlets closed or rebranded, and the shrinking middle class created further challenges. The story highlights the importance of understanding market trends and adapting to consumer behavior to sustain business growth.

Takeaways

• 😀 Warung Upnormal started as a trendy cafe and food spot targeting young adults, especially university students, with an upscale twist on traditional Indonesian snacks.
• 😀 The business was founded in 2014 by Rexmarindo, who transitioned from a career in brand consulting to the food and beverage industry.
• 😀 Upnormal initially focused on making local food like Indomie and fried snacks more premium, with higher prices aimed at middle-to-upper-class customers.
• 😀 By 2019, Warung Upnormal had successfully expanded to 85 outlets across more than 20 cities in Indonesia under the PT Citra Rasa Prima umbrella.
• 😀 Despite its early success, Warung Upnormal faced severe challenges during the COVID-19 pandemic, particularly due to social distancing measures and reduced foot traffic.
• 😀 The business attempted to pivot to online sales, but many young customers preferred cooking at home over dining out, leading to a decrease in sales.
• 😀 High rental costs in prime locations, combined with reduced consumer spending, made it difficult for Upnormal to sustain its business model during the pandemic.
• 😀 Warung Upnormal's reliance on the middle-class segment was problematic, as market shifts and the shrinking middle class led to a smaller target market.
• 😀 Businesses targeting the middle class are at risk, with the market increasingly divided between lower and upper-class consumers, which demands adaptability in business strategy.
• 😀 Many Warung Upnormal outlets have closed or rebranded, with former locations transitioning to new food brands like Sutaku, highlighting the struggle to maintain relevance in a changing market.

Q & A

What is the main focus of the video script?

The video discusses the rise and fall of Warung Upnormal, a popular café chain in Indonesia, detailing its initial success, business expansion, and the challenges it faced, especially after the pandemic.

Who founded Warung Upnormal, and what was his background before starting the café chain?

Warung Upnormal was founded by Rex Marindo in 2014. Before this, Rex worked as a brand consultant for eight years. He initially ventured into the food industry with a fried rice business called 'Nasi Goreng Mafia' before establishing Warung Upnormal.

What was the original concept behind Warung Upnormal?

The concept of Warung Upnormal was to create a casual, cozy, and affordable café targeted primarily at young people, especially college students, offering comfort food like Indomie and local snacks at higher-than-usual prices.

What made Warung Upnormal's business model attractive to young people?

Warung Upnormal targeted young people with a middle to upper-middle-class economic background. Its affordable yet elevated local food offerings, like Indomie and fried snacks, and its relaxed, cozy ambiance made it a popular hangout spot for students and young professionals.

How did the pandemic affect Warung Upnormal’s business?

The pandemic had a significant negative impact on Warung Upnormal, as the café heavily relied on in-store visits from college students and young people. With the shift to online learning and reduced foot traffic, the café struggled to adapt, leading to the closure of several branches.

What strategic mistakes did Warung Upnormal make during the pandemic?

One key mistake was not quickly adapting to the online shopping behavior of consumers. While it tried to sell its products online, many consumers opted to cook at home instead of ordering, leading to a loss of customers and unrecouped costs like high rent for prime locations.

What led to the decline of Warung Upnormal’s presence in Indonesia?

The decline of Warung Upnormal can be attributed to the combination of the pandemic's impact on foot traffic, its failure to adapt to the online consumer shift, and high operational costs like expensive rent in strategic locations. Many of its outlets were eventually closed or rebranded.

What happened to some of Warung Upnormal's closed outlets?

Some of Warung Upnormal's closed outlets were rebranded under new names. For example, the Warung Upnormal in Malang was rebranded as 'Sutaku,' indicating a shift in the business approach.

What market trend does the script reference regarding the shrinking middle class?

The script mentions a market trend called 'market bifurcation,' where the middle class is shrinking, leading to a divide between the upper and lower economic classes. This trend has made it more difficult for businesses targeting the middle class to thrive, especially if they don't adjust their market focus.

What advice does the video provide for businesses trying to succeed in challenging times?

The video emphasizes the importance of understanding your target market, adapting to changing consumer behaviors, and carefully selecting the right market segment. Businesses should also be prepared to adjust their offerings and operational strategies to avoid financial strain, especially when facing tough economic conditions.