Tight Competition, Flash Coffee in Indonesia Claims 50% Business Growth Throughout H1 2024

Startups coffee chain Flash Coffee claims significant growth in Indonesia in the first half (H1) of 2024. This was achieved through an increase in sales of more than 50% which was balanced by the expansion of new outlets in Jakarta and Bandung.

Currently, Flash Coffee operates 67 outlets in Indonesia and is in the process of expanding its presence in this market. Revenue per outlet is claimed to have increased by more than 50% since the beginning of 2024, supported by the new menu that has been launched. Thanks to this strategy, Flash Coffee has achieved operational profitability in Indonesia.

This impressive growth is driven by the company’s vision and decision to focus on the Indonesian market, after closing its operations in other Asian markets and successfully converting Flash Coffee in Thailand into a franchise.

"We have been very enthusiastic about the potential of the Indonesian market since opening our first Flash Coffee outlet in Jakarta in January 2020," he said. Flash Coffee Founder & CEO David Brunier. "Thanks to the support of our loyal customers and our strategic focus on Indonesia as our most mature market, we are now expanding our footprint in the country with plans to add many new stores in the next 12 months. We are just getting started."

Flash Coffee value proposition

Each new store is designed to offer a unique coffee experience, with Flash Coffee’s signature drinks such as Seasalt Palm Sugar Latte and Whipped Strawberry Matcha. In addition, the stores are equipped with a user-friendly digital ordering app and a larger store concept with a comfortable design, encouraging customers to stay longer and socialize.

In addition to the continued commitment from Flash Coffee founders Sebastian Hannecker and David Brunier, White Star Capital has appointed Jakob Angele, Venture Partner at White Star Capital and former CEO of foodpanda, to support Flash Coffee’s growth. Angele, who was instrumental in growing foodpanda to $5,5 billion in transaction volume, will leverage his expertise in the F&B and food delivery industries online to strengthen Flash Coffee's position in the Indonesian market.

“We are very pleased to see our recent changes and intense focus on Indonesia translate into real business success. I am very excited about the future of Flash Coffee,” said Jakob Angele, Executive Chairman of Flash Coffee and Venture Partner at White Star Capital. “Indonesia is one of the most exciting and dynamic coffee markets in the world. Flash Coffee is uniquely positioned to meet the growing demand for high-quality coffee.”

Flash Coffee last posted $50 million series B funding in 2023 led by White Star Capital. Along with the funding announcement, they said they had achieved 100% profitability across all o in Indonesia. Since its establishment in 2020, Flash Coffee now has a presence in Indonesia, Singapore, Thailand, Hong Kong, and South Korea.

Competitive landscape coffee chain

In maneuvering in Indonesia, Flash Coffee is faced with quite tight competition. In this realm - modern coffee shops supported by digital services - there are already a number of local players who have a strong presence. Namely Kopi Kenangan, Fore Coffee, Janji Jiwa, and a number of other players.

Memories Coffee, as unicorn In this sector, recently diversified its business by targeting the lower middle class through brand "Satu Kenangan". In smaller outlets, they offer a variety of coffee beverage products at cheaper prices. Previously, Kopi Kenangan had expanded its products by presenting a variety of bread dishes.

Other players such as Janji Jiwa also continue to expand their territory by entering cities. tier-2 and tier-3.

The current coffee competition landscape is now also starting to be enlivened by the concept of "cart coffee". One of the players who continues to maneuver is Jago Coffee. In April 2024, they just received Series A funding of $ 6 million (around Rp98 billion) led by investors Intudo Ventures and BEENEXT Accelerate. With this business model, the company claims to have achieved stable profitability for several consecutive quarters and grew more than 13x in 2023.