In college, Edward Tirtanata developed a passion for coffee, indulging in “one huge cup” daily from various local spots. Today, as the 35-year-old CEO and co-founder of the thriving coffee company Kopi Kenangan, his daily intake has evolved to three or more cups for “product testing.”
From its humble beginnings as an Indonesian coffee stall in 2017, Kopi Kenangan has transformed into an esteemed international coffee brand, boasting a valuation exceeding $1 billion and over 800 locations across Southeast Asia. The company generated more than $100 million in sales in 2023, showcasing its significant growth.
A Seed of Entrepreneurship
Tirtanata’s journey began in Jakarta, Indonesia, but it took a pivotal turn when he moved to the U.S. in 2007 to attend Northeastern University, where he studied finance and accounting. Despite not enjoying academics, his entrepreneurial spirit was evident from an early age.
“I was definitely naughty — I didn’t really study much,” Tirtanata remarked. “But I always got excited about opportunities to make money.” He learned at a young age the principle of “buy low, sell high,” selling Pokémon cards and gaming bots, inspired in part by his parents, who were also entrepreneurs.
During his freshman year, Tirtanata received distressing news from his mother about his father’s business struggles. This prompted him to accelerate his five-year degree into three years and return to Indonesia to partner with his father, fueling his own entrepreneurial drive amidst the challenges.
Early Business Ventures
Before founding Kopi Kenangan, Tirtanata launched a tea shop chain called Lewis & Carroll in 2015. However, he quickly realized that tea wasn’t as profitable as he hoped. A casual conversation with a friend unveiled that many existing coffee and tea shops were simply too expensive for the average Indonesian consumer.
For perspective, while a Starbucks latte costs about 2% of the median daily income in the U.S., it exceeds 30% in Indonesia. This disparity laid the groundwork for Kopi Kenangan’s inception.
In 2017, Tirtanata and his partner invested $15,000 into their first grab-and-go coffee location in Jakarta, allowing them to focus on quality ingredients rather than the costs associated with traditional café spaces. “Our emphasis was on providing a high-quality cup of coffee,” he stated, which propelled Kopi Kenangan to over 200 locations in just two years.
Innovative Expansion Strategy
The coffee market is notoriously competitive, but Tirtanata attributes Kopi Kenangan’s success to its unique grab-and-go model, a tech-enabled approach, and a hyperlocal strategy that tailors flavors to regional preferences. “While global chains prioritize consistency, we recognize the diverse tastes among different markets,” he explained.
After experiencing the challenges posed by the pandemic, Tirtanata and Prananto reinforced their commitment to integrating technology, resulting in a significant increase in store locations.
Global Ambitions
As of April, Kopi Kenangan has raised over $230 million in investments, further solidifying its market presence. The coffee chain has expanded to Singapore, Malaysia, and continues to eye global markets with future aspirations to list in the U.S.
Tirtanata emphasizes his ongoing journey as a leader, eager to adapt to the complexities of growing a successful business. “I’m very excited about the future,” he noted, “and I believe we are just at the beginning of our journey.”
