What started as a local Indonesian coffee kiosk in 2017 is now a global coffee brand worth more than $1 billion, with more than 800 locations across Southeast Asia.
The company had sales of more than $100 million in 2023, according to documents provided to CNBC Make It.
In seven years, Kopi Kenangan has transformed from a local Indonesian coffee kiosk into a venture-backed coffee unicorn.
Tirtanata grew up in the Indonesian capital, Jakarta.
But he moved to the United States in 2007 when he began his undergraduate studies at Northeastern University in Boston, where he studied finance and accounting.
Although he never enjoyed studying, he had the heart of a businessman from the beginning.
Edward Tirtanata with his parents.
Courtesy of Edward Tirtanata
“When I was a kid, I was definitely naughty, and I didn’t really study much,” he told CNBC Make It. “But whenever there is an opportunity to make money or do business, I always do it [got] excited.”
“It’s not about the money, it’s about the fun of doing it. It’s something that really interests me even today,” he said.
Even as a student, Titanata discovered a key business principle: “Buy low, sell high.” He learned to sell Pokemon cards and gaming bots to his friends at school to make a profit. It was almost instinctive for him.
Inspired by his parents who were also entrepreneurs, Tirtanata has always enjoyed the hustle and bustle of making his own product in the world.
Edward Tirtanata with his family.
Courtesy of Edward Tirtanata
During his first year at university, he received a fateful call from his mother, who revealed that his father’s business had faced some major financial setbacks.
After that call, Tirtanata decided to accelerate his five-year program and finished it in three years.
He soon returned to his native Indonesia and became his father’s business partner.
“At the time, my days were filled with a lot of stress and uncertainty — but I think this is one of those moments that made me a better entrepreneur,” Tirtanata said. Despite facing these financial difficulties with his family, Tirtanata continued to forge his own entrepreneurial path.
Before starting Kopi Kenangan, Tirtanata opened a chain of tea shops called Kopi Kenangan Lewis Carroll in 2015 with locations across Indonesia. By the time he opened his fifth store, he realized that the café was not as profitable as he expected.
Tirtanata and his old friend James Prananto discovered the problem one day, when they were having a casual conversation in his tea shop: many of Indonesia’s large coffee and tea chains were too expensive for locals.
According to the Starbucks tall latte indicatorWhile a tall latte from Starbucks costs about 2% of people’s average daily income in the United States, the same drink costs more than 30% of people’s average daily income in Indonesia.
The first Kopi Kenangan outlet in Indonesia.
Courtesy of Edward Tirtanata.
The idea for Kobi Kinangan was born.
In 2017, Tirtanata and Prananto together invested a total of US$15,000 in their first express location in Jakarta, Indonesia. This model allowed them to eliminate the costs of renting and designing a sit-down café space and, instead, invest that money in high-quality ingredients.
“Instead of focusing on the couch, or fast Wi-Fi, we’ll focus on a good, high-quality cup of coffee,” Tirtanata said.
This decision helped Kopi Kenangan expand to over 200 locations and 10 cities within the first two years of operations.
It’s no secret that the coffee business is highly saturated, especially in large metro areas.
When asked what separates Kopi Kenangan from its competitors, Tirtanata said there are three main reasons: The company’s mobile model, it is a technology-driven company, and it takes a very local approach.
“So, while Starbucks and other global coffee chains prioritize consistency, I realized that people have different tastes and preferences,” he told CNBC.
“This is where we shaped our strategy for our global expansion – we want to make sure the sweetness and strength of the coffee really suits the market we operate in, using a data-driven approach,” Titanata said.
Taking a local, data-driven approach means that a Kopi Kenangan Latte in Singapore will taste different from a latte in Indonesia.
During the Covid crisis, Tirtanata and Prananto redoubled their efforts to integrate technology into their business. This has helped Kopi Kenangan more than triple the number of its stores during the pandemic.
As of April, the coffee chain had raised more than $230 million in funding from investors around the world, according to documents seen by CNBC Make It.
Tirtanata with Kopi Kenangan team.
Courtesy of Edward Tirtanata
Today, Kopi Kenangan stores can be found in Indonesia, Malaysia and Singapore.
But that’s not enough for Tirtanata, who plans to expand the company globally and hopes to list his business in the United States one day.
“It gets more complicated as the business grows, so I try to learn every day how to be a better leader,” he said.
“I’m so excited [about] What the future holds for us. I think we are fair [at] The beginning of our journey.”
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