The coffee business is still profitable, and so is it if you open a coffee shop business. This is because coffee is a popular drink.
At the same time, the habit of many people gathering at coffee shops has developed to drink coffee together while chatting, meeting, and so on.
Read why the coffee shop business is still profitable in Indonesia.
Is Coffee Business Still Profitable?
The coffee business and coffee shop business are still profitable. The demand for coffee is also high, considering drinking coffee at a coffee shop is much more practical. The capital for starting a business can be adjusted according to the budget.
In addition, coffee shops are becoming a trend as a place to hang out and socialize. In full, read the reasons why the coffee shop business is profitable below:
1. High Need and Demand
One of the main reasons why the coffee shop business is still profitable in Indonesia is due to the high need and demand for it. Indonesia is the third largest coffee-producing country in the world after Brazil and Vietnam.
At the same time, coffee consumption in Indonesia is increasing every year. According to data from the International Coffee Organization, per capita, coffee consumption in Indonesia increased from 0.47 kg in 2010 to 0.76 kg in 2019.
2. Coffee Shops as Places to Socialize
Not only a place to enjoy quality coffee, but coffee shops are also comfortable places to socialize.
That’s why you will easily find coffee shops in various cities in Indonesia; big cities like Jakarta and small towns like Malang or Situbondo also have modern coffee shops.
Many people come to coffee shops to meet friends, and business associates, enjoy time with family, etc. Not infrequently, meetings or work team meetings are held in coffee shops.
3. A place for adventurous coffee lovers to enjoy various types of coffee
Coffee has various types and variations, so it is natural that the aroma and taste will differ. There are Arabica, Robusta, Flores, Toraja coffee, and many more.
This allows coffee lovers to taste the adventure of enjoying various variants of the best quality coffee.
The taste of the coffee will be different and more enjoyable when the coffee shop serves processed coffee with other ingredients, such as ginger, milk, syrup, whipped cream, and many more.
This opens opportunities for coffee shop entrepreneurs to provide quality coffee, unique flavors, and a comfortable shop atmosphere.
4. Huge Market Potential and Opportunity to Increase Profits
The huge market potential is also why Indonesia’s coffee shop business is still profitable. Apart from local demand, many foreign tourists who come to Indonesia are coffee lovers, so they will try to visit many coffee shops while in Indonesia.
Indonesia is famous for its high-quality coffees, such as Luwak coffee and Mandailing coffee. Opening a coffee shop can be an opportunity to attract both local customers and foreign tourists.
Moreover, usually not only coffee is sold in coffee shops, but there are also other products, such as snacks, pieces of cake, hot dogs, burgers, french fries, and many more. Of course, the profits of a coffee shop will be even more significant when there are many food and beverage products available.
5. Affordable Initial Investment
Opening a coffee shop is an investment that requires little capital. You can open a small coffee shop with a wealth of around 10 million rupiahs.
Of course, more considerable capital will allow you to open a more extensive coffee shop with more complete facilities.
However, if you want to start a coffee shop business with small capital, you can still do it, even if you use the available space at home.
6. Easy to Manage
The coffee shop business is easier to manage than other businesses, such as restaurants, food depots, and retail businesses. This is because coffee shops require only a few employees and complicated equipment.
You only need to hire two employees if the coffee shop is still on a small scale and has just opened. Then provide a coffee machine and a simple coffee brewer first.
Later in line with business development, you can add employees and complete coffee equipment. So, for your coffee shop business to increase, ensure the recording of business financial transactions is neatly recorded and complete with financial reports for each period. From this data, you can analyze the progress of your business, including calculating whether the use of capital is by the profits you get.
Suppose you want to be practical and efficient in the sales process, record every transaction, calculate capital, stock raw materials, and even make financial reports. In that case, you can use the cashier application.
First, use the free cashier application in the early stages so you don’t have to pay a subscription fee and can save on operational costs.
7. Government Support
The Indonesian government also provides support to coffee shop businesses. One form of support provided is to make coffee a superior commodity. This, of course, makes the coffee shop business opportunity even more promising.
With good prospects and significant profit opportunities, are you interested in opening a coffee shop business? If so, read and study the preparation of the capital needed to open a coffee shop business. Check here: Capital Required to Open a Coffee Shop and the Calculations.
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