Local coffee shops wake up and smell the competition<\/p>\n
P.C. Naommy
\nContributor
\nJakarta<\/p>\n
For Serli Wawolumaya, it's all about the coffee. When the
\n23-year-old private company employee and PR student seeks out her
\ndaily pick-me-up, she does not look for a trendy spot to stop and
\ntalk shop as others look in from the outside.<\/p>\n
Her choice is a locally owned coffee shop -- \"it's tastier and
\nfits my pocketbook\" -- for an Indonesian brew.<\/p>\n
\"I come here because I want my cup of coffee, especially
\nnearing midday when I get sleepy. It's like a vitamin to me,
\nbecause I suddenly have the energy to keep going for the rest of
\nthe day.\"<\/p>\n
Coffee culture has been part of Indonesian life for hundreds
\nof years, especially in the coffee-growing regions in Sumatra and
\nSulawesi, but it's taken on a new, modern meaning with the rapid
\ndevelopment of coffee shops and cafes in the past few years.<\/p>\n
Even those who do not want a caffeine fix have come into the
\nfold.<\/p>\n
\"Actually, I'm not a coffee lover, I just like the
\nenvironment, because it's relaxing, especially after office
\nhours,\" said marketing employee Rex, 24.<\/p>\n
\"I don't mind the high prices, because I don't go there too
\noften.\"<\/p>\n
Heralding the development of coffee consciousness has been
\nStarbucks, which opened its first store at Plaza Indonesia in
\n2002 and now has 24, from Medan in North Sumatra to Denpasar,
\nBali.<\/p>\n
The heavyweight in the coffee world, founded in 1971 and
\noffering its \"coffee experience\", replete with comfy chairs and
\nsoft music, is now firmly entrenched in the flourishing local
\nmarket, along with the venerable Ooh La La, Segafredo, Daily
\nBread, Excelsior, as well as more relative newcomers such as
\nGloria Jean's.<\/p>\n
The general manager of PT Sari Coffee Indonesia, the
\nfranchisee for Starbucks, Anthony Cottan, said coffee culture
\nwelcomed all, from students to working people, from singletons to
\nmarried couples.<\/p>\n
\"That's what makes a coffee shop a nice and neutral place to
\nhang out. Even businesspeople use the coffee shop as a place to
\nhold informal meetings with their partners,\" said Cottan.<\/p>\n
And that inclusiveness also means allowing local coffee shops
\na look in, the company contends.<\/p>\n
\"We don't think that when we open a new cafe it will kill the
\nbusiness growth of existing coffee shops. In fact, we will
\nbenefit each other,\" said Cottan.<\/p>\n
He argued that its big-name presence would attract more people
\nto coffee culture, while existing local brand coffee shops would
\nhelp educate people more about coffee drinking and expand the
\npotential market.<\/p>\n
\"Usually their pricing structure is a bit less than us. It's
\nlikely that people would first try coffee at the local brand
\ncoffee shops, and when they're ready, they might try Starbucks,\"
\nsaid Cottan.<\/p>\n
I. Widjojo, the owner of home-grown Bengawan Solo Coffee, said
\nhe did not believe the presence of international coffee chains
\nwas not muscling out smaller local shops from the market.<\/p>\n
\"In fact, we consider them as our mentors, for their
\nexperience and established management in this business.
\nEspecially Starbucks, for doing a very good job in expanding the
\nmarket.\"<\/p>\n
The first Bengawan Solo coffee bar outlet was opened at the
\nAmbassador mall in Central Jakarta in 2001. Today, it has a total
\nof seven outlets at several malls in Jakarta, mostly using
\npushcarts.<\/p>\n
\"People today, especially businesspeople, perhaps don't have
\nthe time to sit down and talk while having a cup of coffee. They
\njust want the coffee. So that's why we go with the pushcart
\nconcept,\" Widjojo said.<\/p>\n
And there is that price difference; an ice blended Toraja
\ncoffee with milk and whipped cream is Rp 12,500 at Bengawan Solo,
\nabout half the price of the same drink sold by the international
\ncoffee chains.<\/p>\n
\"We offer the best quality coffee and go with affordable
\nprices, even for those who come from the lower income bracket.\"<\/p>\n
Widjojo said that he did not use active promotions, unlike
\nthose of international chains.<\/p>\n
\"We are striving to give our best and let the customers
\ndecide, because trying means believing,\" he added.<\/p>\n
While other local coffee shops have come and gone, Bakoel
\nKoffie at Jl. Barito in South Jakarta, has roots dating back more
\nthan 125 years.<\/p>\n
It has taken the entry of the new names in stride.<\/p>\n
Syenny Chatrine Widjaja, the marketing manager of Bakoel
\nKoffie and part of the fourth generation of owners, agreed that
\nthe entry of international coffee chains was positive for the
\nmarket.<\/p>\n
\"The presence of such international coffee chains has helped
\neducate people about coffee culture, especially among Indonesians
\nwho are known as brand-minded consumers.\"<\/p>\n
The store was founded in 1878, when Liauw Tek Siong, her great
\ngrandfather, opened a coffee roasting business under the Tek Sun
\nHo brand.<\/p>\n
Syenny argued that a local coffee shop like Bakoel offered a
\nmore personal touch in maintaining product quality and freshness,
\nwith the roasting, grinding and blending conducted in store.<\/p>\n
\"The raw ingredients at international coffee chains are not
\nbeing processed in Indonesia, but at their headquarters
\nelsewhere. With such long distribution channels, it's possible
\nthat the products have lost their freshness during the journey.\"<\/p>\n
Bakoel Koffie has also tried to expand its market by focusing
\non young people as potential customers, especially as coffee
\nshops can be a place to be seen and heard instead of noisy,
\ncrowded bars.<\/p>\n
\"Coffee culture wasn't previously associated with young
\npeople, but now a hangout is mostly associated with drinking
\ncoffee in local coffee shops,\" said Syenny.<\/p>\n
Its menu now includes coffee-based beverages which are popular
\namong the younger crowd, such as cappuccino, latte and ice-
\nblended drinks.<\/p>\n
\"It's almost impossible to expect young customers to buy a
\npacket of pure coffee, because they're not at that stage yet.
\nThat's why we try to educate them through those popular coffee-
\nbased drinks,\" said Syenny.<\/p>\n
Bakoel Koffie's decor style is a 1930s' Jakarta theme with a
\ncurrent contemporary style.<\/p>\n
\"The basic concept is a coffee bar, a place where you come to
\nhang out with friends over coffee, a light lunch, accompanied by
\nhip music, such as the Buddha bar,\" said Syenny.<\/p>\n
From her own family's long experience in the business, she
\nsaid following a trend was not the way to stay for the long haul.<\/p>\n
\"To really exist in this kind of business, we need to inject
\nsoul into it, because it is the most basic element that cannot be
\nreplicate by other competitors.\"<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/local-coffee-shops-wake-up-and-smell-the-competition-1447899208",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}