Kopi Kenangan, Indonesia’s largest coffee chain, is set to enter India and plans to add 50 stores over the next three years. In an online interview, EDWARD TIRTANATA, cofounder and group chief executive officer of Kenangan Brands, and SANJAY MOHTA, vice-president and general manager, India, Kenangan Coffee, spoke to Sharleen D’Souza on positioning the brand as an affordable option. Edited excerpts:
Why are you looking to enter India at this juncture?
Edward Tirtanata: If you don't aim at India — especially if you're primarily operating in Asia — it would be crazy not to enter, because India has the largest population in the world. I believe that by 2030, India will have a larger middle class, and this middle-class population will be bigger than the entire population of Indonesia. That’s why I believe India has the greatest growth potential, and we’ve chosen it as our fifth country to operate in. We’re also opening in Australia this month. We’re very excited to be in both these countries, especially India.
How will you price your menu in India?
Sanjay Mohta: In India, we’ll price our beverages starting at ₹99 for an espresso and ₹129 for an Americano, going up to ₹329. Most beverages will range between ₹130 and ₹330. This is certainly more accessible than what is currently available among global café options in India. We believe the category is growing rapidly and has immense potential. There's a huge young population that wants to participate in this category, and by offering them more accessible choices and price points, it becomes much easier for the brand to succeed.
How many stores will you open over the next three years, and what will be their size?
Tirtanata: Our goal is to open 50 stores in the next three years and 10 within the next year. Our ideal store size will be between 800 square feet (sq. ft) and 1,000 sq. ft.
Will you look at various store formats in India?
Mohta: Yes, we’ll have a variety of formats — a mix of flagship stores, mall stores, and kiosks.
Will you localise your menu to cater to the Indian consumer’s palate?
Tirtanata: This is where we believe we have a competitive advantage compared to other global coffee chains. A cup of latte in Jakarta, Malaysia, or Singapore will taste different in each country — unlike other brands, where the same beverage tastes the same everywhere.
Before entering any market, we always make sure the menu is localised and suited to the local palate. We believe that Indians, Indonesians, Malaysians — everyone has a different taste preference, especially in terms of coffee strength and sweetness levels.
So yes, we’ve localised the menu. It’s completely different from what you’d find in Singapore, with a few similarities — especially gula aren ((also known as palm sugar), our core ingredient, which is the only one that’s consistent across the five countries we operate in.
We’ve also localised the food menu with snacks like paneer wraps, tandoori chicken, and others.
 "Crazy not to enter India if you're operating in Asia: Kopi Kenangan")
