Trihill Capital Injects "Hey! Cafe" Funding, Accelerates Expansion and Releases Application Soon

Startups new economy Hey! Kafe announced the acquisition of an initial stage investment with an undisclosed amount from Trihill Capital. This fresh fund will be used to accelerate the expansion of 300 outlets by the end of next year and release applications to encourage transactions from digital channels.

Hey! Café pioneered in June 2020 by Edwin Djaja. He is the founder of Seven Retail, a company multi-brand which houses various brands -- one of which is Golden Lamian, chinese fast casual chain Indonesia's leading brand, which currently has more than 70 outlets since its establishment in 2017.

Hey! The cafe is designed in such a way that it can move swiftly in the midst of intense competition in the F&B retail industry by utilizing the presence of technology. In an official statement, Edward said Hey Kafe used a strategy Same Store Sales Growth, which focuses on increasing the average sales per branch, not only increasing sales by increasing the total number of branches.

This strategy enables each branch to earn a return on investment of under 12 months. "Obviously this is an important factor for businesses to continue to grow rapidly globally sustainable in the following years,” said Edward.

For store expansion, the company offers franchise partnerships, as many other F&B retail businesses do. In addition, the company uses a low-asset business model strategy to support facilities delivery service grab &go. Most outlets are designed to be small and compact, thus requiring minimal capital.

This step was taken because about 70% of Hey! Cafe done by online, by working with various food delivery platforms, such as GoFood, GrabFood, ShopeeFood, and Traveloka Eats.

Product innovation is also an important part. Edward said, in strategy Branding and new product development, the company routinely tests more than 20 product concepts every month. This strategy has succeeded in producing a variety of unique menus and products and has become a bestseller, such as the Hey-Shake!, Strawberry Heaven Hey-Shake, and Choco-Cashew Hey-Shake drink series.

Hey Kafe's target users are the younger generation, which is the largest population in Indonesia. Therefore, good product quality and affordable prices are the strengths of Hey Kafe. Currently, Hey Kafe is able to sell 12 thousand glasses per day or 350 thousand glasses per month from 60 outlets currently operating in Greater Jakarta and Surabaya.

Edward hopes that with the support of VCs, such as Trihill Capital, the company can become ammunition to become a network player grab &go leader in Southeast Asia. He targets that the funds will be used to strengthen branding strategies and investment in technology.

“In early 2022, Hey Kafe will launch in-house mobile applications which makes it easier for all consumers to transact, so that it is expected to be able to increase sales, which currently have reached 350 thousand glasses each month, "he concluded.

High enthusiasm from venture capitalists

Services food tech in general it is on the rise. This type of company utilizes technology as a whole, starting from supply chain leaders raw materials, operational efficiency, financial records, payments, to distribution.

Covid-19 has a real impact on the F&B industry, but at the same time tests the business mentality of the founder-his. Some who choose to continue to accelerate their business, transform by utilizing the various existing services.

In order to maintain the growth trend, industry players have started to take advantage of digital channels. This strategy was carried out in tandem with an increase in the number of outlets. Draft grab &go itself is very dependent on the existence of outlets, although not a few are only used as places of production (without having room for dine-in).

The application is designed to connect consumers with o, brought from online going to offline - or vice versa. This model is quite efficient, because companies can also take advantage of data obtained from consumer habits recorded in the application, so that they can offer products and services that are more in line with their market share. From the consumer side, the convenience and value added make them willing to take advantage of the application.

The enthusiasm of venture capitalists is also increasing to enter this segment. Here's the list: