This text was first printed on January 20, 2021.
We will by no means get sufficient of Indonesian digital espresso chain Kopi Kenangan –and we’re not simply speaking about their cup of iced espresso on a scorching, busy day.
The startup has made headlines with their high-profile funding rounds, the most recent being their US$109 million Collection B funding spherical in Might 2020. Following these updates, Kopi Kenangan has by no means been shy about their ambition to constantly broaden.
“What if we will open, not 5 to 10 new shops every month, however one every day?” says Co-Founder & COO James Prananto in an interview with e27.
Whereas the purpose would possibly sound formidable, the outcomes that the corporate made has been exhibiting nice promise. Based on Jumpstart, Nielsen Firm has named Kopi Kenangan because the primary in top-of-mind consciousness within the milk espresso class and second solely after a longtime multinational espresso chain within the basic espresso class. That is an achievement that the journal dubbed as “notable” on condition that Kopi Kenangan has solely been working for lower than two years on the time.
To make that purpose comes true, there are sensible steps that the startup is implementing. On this deep dive collection, Prananto spills the small print on how Kopi Kenangan plans to open one new retailer every day.
On this article, you’ll be taught:
– The significance of brand-building in scaling your online business
– Utilizing tech in scaling your online business
– Why founders ought to all the time have a Day One mentality
Additionally Learn: Kopi Kenangan snags US$109M in Collection B funding led by Sequoia Capital
A model isn’t inbuilt a day
Earlier than we will contact on the subject of scaling up, first we have to learn the way Kopi Kenangan builds their model. They’re actually not the primary espresso chain to ever function within the Indonesian market, so to have a particular function is a should.
Based on Prananto, there are two methods the corporate intends to realize it: by means of its model id and model promise.
“What we imagine is that successful is all about how one can be totally different out of your competitor. After all, with branding, there’s a model promise as nicely … the dedication from us to our buyer,” he begins.
Kopi Kenangan does it by doing one thing that their opponents keep away from. They undertake what Prananto describes as “tacky” and cringe-worthy themes into their firm’s model, right down to the names of the drinks on the menu. For instance, their signature beverage known as Kopi Kenangan Mantan or “reminiscences of the ex-lover” espresso.
“Again then in 2017, most espresso manufacturers have been actually severe … It’s not approachable,” he says.
As soon as that model id has been established, the corporate begins to nail down its model promise which is the usage of high-quality espresso beans and machines.
“Branding is extra than simply graphic design or having a pleasant video [of your company]. It’s a complete expertise that begins if you enter our retailer … Whether or not its the cashier greeting you good morning, whether or not they’re smiling or not, whether or not we’re utilizing the right machine,” Prananto factors out.
“When you do [these] issues proper, you might be creating model consciousness to your buyer with out having to spend a lot on buyer acquisition. I imagine that is the most important mistake that founders make, spending a lot on buyer acquisition with out serious about constructing their model,” he continues.
Prananto additionally states that by the point Kopi Kenangan was growing its model, the corporate didn’t have as a lot funding as they do in the present day. The model creation was performed by the founders themselves.
Additionally Learn: [Updated] Indonesian espresso chain Kopi Kenangan raises Collection A extension from Jay-Z, Serena Williams’s VC companies
Although the corporate now has its personal inventive director, Kopi Kenangan continues to see the model constructing as a duty of each staff within the firm –not simply the inventive staff. For this reason Kopi Kenangan launched its personal worker coaching centre Kopi Kenangan Academy to make sure standardised service high quality.
What it takes to scale a enterprise
Now that the model id and model promise have been established, Kopi Kenangan strikes on to the subsequent steps that it take to understand its growth plan. Prananto lays down the small print on how the startup makes use of tech to assist them launch one new retailer per day.
“Initially, we have to discover a location, proper? That’s the place we begin on constructing our proprietary heatmap expertise, the place we attempt to establish the place our prospects are. As soon as we’ve got recognized [their location], we have to know whether or not there’s already a specific retailer over there or not,” he explains.
As soon as a brand new location is secured, the corporate wants a way that can allow them to construct a brand new outlet in a well timed method. To realize this, as a substitute of going to location one-by-one and construct one thing from zero, Kopi Kenangan prepares a system that Prananto likens to a puzzle. With an present blueprint of all the weather that needs to be in a Kopi Kenangan outlet, contractors solely have to make use of these references and modify to the wants of the areas.
This step is adopted by making ready the human useful resource that can run the outlet –the half the place their SOP and coaching programme are available.
However even this tidy mechanism comes with its personal challenges.
“So, the most important problem will clearly be operational consistency, if you find yourself aiming to open one retailer per day. In December 2019, we opened 42 new shops when most manufacturers in Indonesia would open 40 to 50 retailers in a yr,” Prananto elaborates.
“To beat the problem, repeatedly, we make investments much more on our studying and improvement (L&D). On prime of that, we attempt to use tech to deal with these challenges. I imagine that as a tech-enabled firm, you don’t simply use it on your consumer-facing app. You utilize it that can assist you create a strong backup inside your organisation as nicely,” he continues.
Prananto additionally provides that the corporate is at the moment engaged on a sensible administration system that can enable the retailers to function with out the necessity of a supervisor. They anticipate to launch this technique by mid-2021.
Additionally Learn: Every little thing from soup to nuts: Meet the 27 ghost kitchen startups in Southeast Asia
Every single day is a model new day
Whereas the usage of tech is essential in serving to Kopi Kenangan broaden its enterprise, there’s nothing that may ever exchange tradition.
For Prananto, it’s all about implementing a Day One mentality which permits the startup to see daily as the primary day they function. They select to undertake this mentality as there’s a tendency for enterprise operations to decelerate after working for a very long time; they’ve to stay agile and excited for the work because the day the enterprise was launched.
“This Day One mentality additionally signifies that you must all the time be customer-driven … As a result of the second we grow to be complacent is the day we grow to be irrelevant,” Prananto says.
To unite the corporate right into a single purpose, Kopi Kenangan additionally implements the usage of OKRs in its operations.
“As soon as once more, branding isn’t just about graphic design. It’s all concerning the sensory expertise,” he stresses.
Prisca Akhaya T. additionally contributed to this text.
Picture Credit score: Kopi Kenangan
The publish Caffeinated growth: How Kopi Kenangan achieves its purpose of opening one new retailer per day appeared first on e27.