IS TOMORO COFFEE THE NEXT MIXUE?
Siti Paramadita, S.Ds., MBA Binus Entrepreneurship Center
What is Tomoro Coffee?
Founded in the third quarter of 2022, Tomoro Coffee has been one of the fastest growing Coffee Shop in Indonesia. Within its two years of operation, Tomoro Coffee has expanded to 600 outlets across Indonesia and still yet to increase the outlet up to 1000 outlets by the end of 2024. Overseas, Tomoro Coffee has six outlets in Singapore, 12 outlets in The Philippines and 1 outlet in Shanghai, China. These outlets are developed without franchise. Despite its massive and ambitious expansion, the question is, will it going to survive?
Who are Behind Tomoro Coffee?
Backed-up by ATM Capital – China’s well-known Venture Capital that focuses on South-East Asia region, Tomoro Coffee is made with a big dream of becoming the largest coffee chain in South-East Asia. Xing Wei Yuan or often known by his English name as ‘Star Yuan’ is the founder of Tomoro Coffee. Previously, Star has been well known in Startup Industry. Though so, this is the first time he entered food and beverage industry. Star was the Director of Product Management in OPPO in 2016. His biggest achievement in OPPO was to increase its market share in West Kalimantan, Indonesia from 12 to 46 percent. Then he co-founded J&T Express, an international logistic company. Lastly, he founded Imoo Electronic Appliances and Imoo Watch Phone. Imoo was starting at high-stake in Indonesia, but then falls into sales drop due to pandemic. These experiences then allowing Star to pursue a
In 2021, Star entered National University of Singapore (NUS) to pursue an Executive Master of Business Administration Degree. During this time of his life, Star met Fish [Sun] – Tomoro Coffee’s Vice President, Products and Supply Chain that convinced him that coffee was a product with a lot more brand loyalty and lifetime value to the customer. Hence, together they founded Tomoro Coffee.
Tomoro Coffee’s Value
With a touch of local delicacy, Tomoro Coffee has been successfully entered Indonesian market. Collaborating with Dale Harris, the winner of the World Barista Championship 2017, and Muhammad Aga, the winner of Indonesia Barista Championship 2018, Tomoro Coffee created delicious coffee menu inspired from Indonesian coffee of palm sugar iced latte and its breakthrough in creating a full range of menu using oat milk and other Indonesian local ingredients such as pandan coffee beverages.
Tomoro Coffee sounded as good as a regular coffee chain, but is it really? Tomoro Coffee is not just a regular coffee shop, it focuses on high-volume stores, thus, it is using Eversys E’4 two-group machines, a coffee machine that can handle more than 1200 cups per day. This breakthrough enables Tomoro to maintain affordable specialty coffee while reducing its operational cost and high-margin business model. Moreover, Tomoro has an application that enables it to personally connect to its customers – hence, improving personal bond.
Will Tomoro Coffee Survive?
Tomoro Coffee’s high paced growth creates many reactions in public point of views. Many believes that Tomoro Coffee would be able to survive but no less doubt it and compare it to Mixue’s decline in sales and outlet closings. However, though they have similar emersion, Mixue did not start with a strong business strategy as Tomoro Coffee did. Mixue in the other hand is a franchise business presenting easily viral products but is not able to create a strong personal bond with its customer loyalty.
Nevertheless, if Tomoro Coffee wants to survive, it should hold the consistency of the coffee taste and customer retention – keeping up with the brand image and customer experience throughout the whole process.
References:
https://www.viva.co.id/bisnis/1770746-tomoro-coffee-kisah-sukses-kedai-kopi-modern-di-indonesia#:~:text=Tomoro%20Coffee%20didirikan%20pada%20Agustus,efisiensi%2C%20kualitas%2C%20dan%20inovasi.
https://atmcapital.com/en/blog/83
https://mojok.co/terminal/bisakah-tomoro-coffee-bertahan-lama-di-indonesia-bisa-banget/
https://kabargarut.pikiran-rakyat.com/ekonomi-bisnis/pr-3218713945/kenapa-mixue-yang-dulu-ramai-kini-sepi-pengunjung?page=all
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