In faculty, Edward Tirtanata had a brewing love for espresso, a lot in order that he’d order “one big cup” day by day from both Dunkin’ Donuts or 7-Eleven.
At present, the 35-year-old CEO and co-founder of venture-backed unicorn espresso firm Kopi Kenangan, nonetheless has his cup of joe every day — besides that he is upgraded it to 3 or extra cups a day for “product testing” functions.
What began as a neighborhood Indonesian espresso stall in 2017 has now change into a global espresso model value over $1 billion, with greater than 800 areas throughout Southeast Asia.
The corporate raked in over $100 million in gross sales in 2023, in keeping with paperwork offered to CNBC Make It.
Throughout the span of seven years, Kopi Kenangan went from a neighborhood Indonesian espresso stall to a venture-backed unicorn espresso firm.
Entrepreneur within the making
Tirtanata grew up within the Indonesian capital of Jakarta.
However he moved to the U.S. in 2007 when he began faculty at Northeastern College in Boston, the place he studied finance and accounting.
Whereas he by no means loved finding out, he had the guts of an entrepreneur from the beginning.
Edward Tirtanata along with his dad and mom.
Courtesy of Edward Tirtanata
“Once I was a child, I used to be positively naughty — I did not actually examine a lot,” he instructed CNBC Make It. “However at any time when there is a chance to earn cash or do companies, I all the time [got] excited.”
“It isn’t in regards to the cash — it is in regards to the pleasure of doing it. It’s one thing that actually excites me till at the moment,” he stated.
Whilst a pupil, Tirtanata found a key enterprise precept: “Purchase low, promote excessive.” He discovered to promote Pokémon playing cards and gaming bots to mates in school for a revenue. It was nearly instinctive for him.
Impressed by his dad and mom who have been additionally entrepreneurs, Tirtanata all the time loved the hustle of creating his personal on this planet.
Edward Tirtanata along with his household.
Courtesy of Edward Tirtanata
Throughout his freshman 12 months in college, he acquired a fateful name from his mom, who revealed that his father’s enterprise had encountered some main monetary setbacks.
After that decision, Tirtanata determined to hurry via his five-year program and completed it in three.
He rapidly returned to residence Indonesia and have become his father’s enterprise associate.
“Again then, my days have been full of numerous stress and uncertainty — however I believe that is a kind of moments that made me a greater entrepreneur,” stated Tirtanata. Regardless of dealing with these monetary difficulties along with his household, Tirtanata went on to forge his personal entrepreneurial path.
Enterprise beginnings
Earlier than beginning Kopi Kenangan, Tirtanata opened a tea store chain known as Lewis & Carroll in 2015 with areas throughout Indonesia. By the point he opened his fifth retailer, he realized that the tea store wasn’t as worthwhile as he anticipated.
Tirtanata and his long-time buddy James Prananto found the issue in the future, once they have been having an off-the-cuff chat at his tea store: lots of the large espresso and tea chains in Indonesia have been too costly for the native inhabitants.
In accordance with the Starbucks Tall Latte Index, whereas a Starbucks tall latte prices roughly 2% of the median every day earnings of individuals within the U.S., that very same drink prices greater than 30% of the median every day earnings of individuals in Indonesia.
Kopi Kenangan’s first outlet in Indonesia.
Courtesy of Edward Tirtanata.
The concept of Kopi Kenangan was born.
In 2017, Tirtanata and Prananto collectively invested a complete of $15,000 into their first grab-and-go location in Jakarta, Indonesia. This mannequin allowed them to ditch the prices of renting and designing a sit-down cafe house, and as a substitute, make investments that cash into high quality components.
“As an alternative of specializing in the couch, or quick Wi-Fi, we’ll give attention to a great, top quality cup of espresso,” Tirtanata stated.
This determination helped Kopi Kenangan scale to over 200 areas and 10 cities inside the first two years of operations.
Kopi Kenangan’s secret system
It is no secret that the espresso enterprise is extremely saturated, particularly in large metro areas.
Requested what has separated Kopi Kenangan from its opponents, Tirtanata stated there are three main causes: the corporate’s grab-and-go mannequin, it’s a tech-enabled enterprise, and it takes a hyperlocal strategy.
“So whereas Starbucks and different international espresso chains actually prioritize consistency, I spotted that folks have completely different tastes and preferences,” he instructed CNBC.
“That is the place we actually formed our technique for our international enlargement — we wish to make it possible for the sweetness and robustness of the espresso actually fits the market that we’re working in, utilizing a data-driven strategy,” Tirtanata stated.
Taking a data-driven hyperlocal strategy implies that a Kopi Kenangan latte in Singapore will style completely different from a latte in Indonesia.
Throughout Covid, Tirtanata and Prananto doubled down on their efforts to combine expertise into their enterprise. This helped Kopi Kenangan greater than triple its retailer depend throughout the pandemic.
From Indonesia to the world
As of April, the espresso chain has raised over $230 million in funding from buyers throughout the globe, in keeping with paperwork seen by CNBC Make It.
Tirtanata with the Kopi Kenangan staff.
Courtesy of Edward Tirtanata
At present, Kopi Kenangan shops could be present in Indonesia, Malaysia and Singapore.
However that is not sufficient for Tirtanata, who plans to increase the corporate globally and hopes to checklist the enterprise within the U.S. in the future.
“It solely will get extra sophisticated as a enterprise grows larger — so I attempt to study on a regular basis find out how to change into a greater chief,” he stated.
“I am very excited [about] what the longer term holds for us. I imagine that we’re simply [at] the start of our journey.”
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