Market Research Report: The Coffee Shop Industry in Bandung, West Java

Date of Report: June 12, 2025 Prepared For: Prospective Coffee Shop Entrepreneurs & Investors
Scope: Analysis of the market landscape, consumer behavior, competition, and opportunities for a
new coffee shop in Bandung.

Executive Summary

Bandung continues to be a vibrant and highly competitive market for coffee shops, driven by its large
youth population, status as a creative and educational hub, and its popularity as a weekend
destination for tourists from Jakarta and surrounding areas. The market in 2025 is mature,
characterized by a sophisticated consumer base that values not just the quality of the coffee, but the
overall experience, including ambiance, aesthetic appeal, and community.

While market saturation is a significant challenge, clear opportunities exist for new entrants who can
offer a strong, unique value proposition. Key success factors include: 1) a well-defined niche
concept, 2) strategic location selection, 3) superior product quality with an emphasis on local
beans, 4) a strong digital and community-building strategy, and 5) operational efficiency.

This report recommends that new ventures should avoid competing directly with established giants
on price alone. Instead, they should focus on creating a unique micro-experience, whether through
thematic design, specialty coffee programs (e.g., single-origin anaerobic processed beans), food
pairings, or by becoming a hub for a specific community (e.g., cyclists, artists, tech professionals).

1.0 Bandung Market Overview

1.1 Demographics

 Population: Bandung city has a population of approximately 2.5 million, with the greater
Bandung metropolitan area (Bandung Raya) exceeding 8.5 million.

 Youth Dominance: A significant portion of the population is between 15-35 years old, largely
due to the presence of numerous universities and colleges (ITB, UNPAD, UPI, Telkom
University, etc.). This demographic forms the core customer base for coffee shops.

 Growing Middle Class: Bandung has a robust and growing middle class with increasing
disposable income and a penchant for lifestyle-oriented spending.

1.2 Economic Indicators

 Creative Economy Hub: Designated as a UNESCO City of Design, Bandung thrives on its
creative industries, including fashion, digital media, and architecture. This fosters a culture
that appreciates aesthetics, craftsmanship, and unique experiences.

 Tourism: Bandung is a major domestic tourism destination, especially during weekends and
holidays. This provides a consistent influx of non-resident customers seeking unique culinary
experiences.

 Post-Pandemic Growth: The food and beverage sector has shown strong recovery and
growth, with consumers eager to socialize and work outside their homes.
2.0 Coffee Culture & Consumer Trends (2025)

The Bandung coffee scene has evolved beyond the "second wave" (espresso-based drinks and
comfortable seating) into a deeply entrenched "third wave" and emerging "fourth wave" culture.

 Third-Wave Sophistication: Consumers are knowledgeable about coffee. They understand

terms like single-origin, processing methods (washed, honey, natural), and brewing
techniques (V60, Aeropress, Kalita). There is a strong appreciation for local West Java beans
like Preanger, Ciwidey, and Malabar.

 The "Experience" is Paramount: The reason for visiting a coffee shop is often not just the
coffee.

o Aesthetics (Instagrammable): A unique interior design (e.g., brutalist, minimalist,

industrial, lush green) is a non-negotiable marketing tool.

o Co-working & "Work from Cafe": Reliable, high-speed Wi-Fi, ample power outlets,
and comfortable seating for long durations are critical drivers of weekday traffic.

o Community Hubs: Shops that host events like live music, workshops, art exhibitions,
or community meet-ups build strong loyalty.

 Rise of Non-Coffee & Plant-Based Options: The menu must be inclusive. High-quality
matcha, specialty teas, mocktails, and plant-based milk alternatives (oat, almond) are now
standard expectations.

 Sustainability & Local Sourcing: There is a growing consumer segment that values ethical
sourcing, direct trade with local farmers, and eco-friendly practices (e.g., minimal plastic,
waste management). Highlighting this in your brand story is a powerful differentiator.

 Food Pairings: Coffee is often consumed with food. A strong offering of pastries, brunch
items, or even full meals can significantly increase the average check size. Local-inspired
pastries (kue balok with a modern twist) are very popular alongside staples like croissants.

3.0 Target Audience Segmentation

A successful coffee shop must cater to one or more of these key segments:

Segment Key Characteristics & Needs Marketing Angle

- Price-sensitive<br>- Needs fast Wi-Fi & - Student discounts<br>-

The Student / power outlets<br>- Stays for long Affordable "paket hemat" (combo
"Mahasiswa" hours<br>- Prefers loyalty programs & deals)<br>- Market on campus-
promos focused social media

- Values high-quality, specialty coffee<br>-

- Highlight premium single-origin
The Young Seeks a conducive environment for meetings
beans<br>- Promote a quiet,
Professional / or focused work<br>- Appreciates unique
professional ambiance<br>- Offer
Creative aesthetics and good service<br>- Less price-
reservable meeting spaces
sensitive for quality
 - Comes in groups of 3+<br>- Seeks a - Promote group-friendly
The Social
vibrant, social atmosphere<br>- Attracted seating<br>- Host regular
Group /
by events, music, and shareable food/drink community events<br>- Offer
Community
items shareable platters or pitchers

- Invest heavily in aesthetics and

- Seeks a unique "Bandung
unique design<br>- Ensure clean,
The Weekend experience"<br>- Values photogenic spots
accessible facilities<br>- Offer a
Tourist / Family and comfort<br>- Often looks for family-
diverse menu with options for all
friendly options and substantial food menus
ages

Export to Sheets

4.0 Competitive Landscape

The market is highly saturated. Competitors can be grouped into three main tiers:

 Tier 1: Established Local Chains (High Brand Recognition)

o Examples: Sejiwa Coffee, Kopi Toko Djawa, Kopi Anjis.

o Strengths: Strong brand loyalty, multiple locations, consistent quality, well-honed

operational models.

o Weaknesses: Can be perceived as mainstream, less "special" than smaller indie

shops.

 Tier 2: Independent & Specialty Shops (Focus on Quality & Niche)

o Examples: Blue Doors, Noah's Barn Coffee, Masagi Koffee, Two Hands Full.

o Strengths: Perceived as authentic, experts in coffee, unique ambiance, strong

community following.

o Weaknesses: Limited marketing budget, scalability challenges, can feel intimidating

to novice coffee drinkers.

 Tier 3: International Chains & Grab-and-Go

o Examples: Starbucks, Kopi Kenangan, Janji Jiwa.

o Strengths: Massive brand power, hyper-convenient, aggressive pricing and

promotions, strong tech integration (apps).

o Weaknesses: Generic experience, less focus on specialty coffee culture.

SWOT Analysis for a New Coffee Shop

 Strengths: Ability to create a fresh, modern concept; no pre-existing brand baggage; agility
to adapt to new trends; opportunity to build a brand from scratch with a unique story.

 Weaknesses: No brand recognition or customer base; high initial marketing costs; steep
learning curve in operations; vulnerability to price wars from larger players.
  Opportunities: Underserved geographical areas or consumer niches; collaborating with local
artists, brands, or communities; introducing innovative products or experiences; capitalizing
on new social media trends (e.g., TikTok-driven marketing).

 Threats: Intense competition leading to high customer acquisition costs; rising rent and
ingredient prices (especially for specialty beans); difficulty in retaining skilled baristas;
rapidly changing consumer trends requiring constant innovation.

5.0 Location Analysis

Location is arguably the most critical factor for success.

 Dago (Atas & Bawah):

o Pros: High traffic from students and tourists, vibrant atmosphere.

o Cons: Very high competition, high rental costs, potential traffic congestion.

o Best For: A concept with strong branding that can stand out.

 Riau (Jl. R.E. Martadinata):

o Pros: Hub for fashion outlets and culinary businesses, attracts a trendy, affluent
crowd.

o Cons: High rent, fierce competition from established F&B players.

o Best For: A high-end, design-focused concept with a strong food program.

 Braga:

o Pros: Historic, artistic vibe; high foot traffic from tourists.

o Cons: Competition is dense, parking is a major issue.

o Best For: A thematic shop that complements the area's heritage/artsy feel.

 Setiabudi / Ciumbuleuit:

o Pros: Caters to university crowds and residential complexes, potential for scenic
views.

o Cons: Competition is growing rapidly.

o Best For: A large-format, "destination" coffee shop with ample parking and seating.

 Buah Batu / South Bandung:

o Pros: Densely populated residential area, lower rental costs, less saturation of
specialty coffee shops.

o Cons: Lower tourist traffic, market may be more price-sensitive.

o Best For: A community-focused, neighborhood coffee shop.

6.0 Pricing and Product Strategy

6.1 Pricing (Estimated, in IDR)

 Espresso: IDR20,000−28,000

 Cappuccino / Latte: IDR28,000−45,000

 Manual Brew (Local Beans): IDR30,000−45,000

 Manual Brew (Imported/Special Beans): IDR45,000−80,000+

 Signature Mocktails / Non-Coffee: IDR30,000−50,000

 Pastries: IDR20,000−40,000

 Brunch / Light Meal: IDR45,000−85,000

6.2 Product Recommendations

 Hero Product: Develop one or two unforgettable signature drinks that become synonymous
with your brand.

 Core Coffee Program: Offer a standard, high-quality house blend for espresso drinks and a
rotating selection of 2-3 single-origin beans for manual brewing, focusing on West Java
origins.

 Diverse Menu: A balanced menu is key. At least 30% of your beverage menu should be
appealing non-coffee options.

 Food is Essential: Partner with a quality local bakery or invest in an in-house kitchen. The
quality of your food must match the quality of your coffee.

7.0 Marketing & Promotion Strategy

 Pre-Launch Hype: Generate buzz on social media (Instagram, TikTok) weeks before opening
with "coming soon" posts, behind-the-scenes content, and influencer collaborations.

 Visual-First Social Media: Instagram and TikTok are your primary channels. Invest in high-
quality photo and video content. Run targeted ads based on location and interests (e.g.,
"specialty coffee," "work from cafe").

 Influencer Marketing: Collaborate with Bandung-based food bloggers and lifestyle

influencers. Micro-influencers (5k-50k followers) often provide better engagement and ROI.

 Community Building: Host events. A coffee tasting workshop, a latte art class, an acoustic
music night, or a local artist's exhibition can turn customers into a community.

 Loyalty Programs: Implement a simple digital stamp card or point system to encourage
repeat business.

 Local Partnerships: Collaborate with nearby businesses (e.g., bookstores, yoga studios,
boutiques) for cross-promotions.
8.0 Key Success Factors & Recommendations

1. Define Your Unique Value Proposition (UVP): Do not be "just another coffee shop." Are you
the best for working? The most aesthetic? The one with the rarest beans? The friendliest
neighborhood spot? Your concept must be sharp and clear.

2. Prioritize Experience over Everything: The quality of the coffee is the entry ticket, not the
whole game. The service, music, cleanliness, comfort, and overall vibe are what will create
loyal customers.

3. Embrace Localism: Championing local West Java coffee farmers is not just a trend; it's a
powerful story that resonates with Bandung's identity. Build direct relationships with
farmers or reputable local roasters.

4. Invest in Your Team: A skilled and passionate barista is your most important asset. They are
your front-line salespeople, educators, and brand ambassadors. Invest in their training and
pay them competitively.

5. Be Operationally Excellent: Manage your costs meticulously. Implement an efficient Point of

Sale (POS) system to track sales and inventory. Optimize your workflow behind the bar to
handle peak hours smoothly.

6. Start Lean, Then Expand: Consider starting with a smaller footprint and a focused menu to
test the market. A successful small shop is better than a struggling large one.