Odi Anindito, Coffee Business Boosts Love of Country

Saturday, 01 December 2012

Indonesia is the producer of some of the best coffees in the world. Ironically, people in Indonesia are often not aware of the fact that many of the brands of imported coffee currently taking the country by storm actually originate in Indonesia. Concerned about this, Odi (33), on coming home from his studies in Australia, opened his own coffee business. Slowly but surely, in line with increasing public appreciation of local coffees, Odi’s Coffee Toffee outlets has been growing in number, providing proof positive of his success in popularizing local coffees.
THAT’S THE SPIRIT that convinced Odi Anindito that the time was right to make Indonesian coffee master in its own house. “It began when I was studying in Australia. To pass the time and earn some money, I took up a traineeship in a coffee shop. That’s where I discovered many fascinating facts about Indonesia’s world-class coffees,” he explained. Of the world’s 31 top-ranked coffees, 12 come from Indonesia and are categorized as best sellers.
It was on this basis that Odi decided to go into business after his return from Australia in 2003, “Initially I was involved in the IT business, but in 2006 I decided to turn to coffee,” he said, adding that he give up his IT business as he believed the prospects in coffee were greater. Coffee was also his passion. And so he opened a number of booths selling coffee at affordable prices. “I opened booths in several locations in front of convenience stores. Unfortunately, however, sales at the time were not so good, so I decided to close up shop in 2007 and moved to Jakarta,” Odi recalled.
In Jakarta, he set out in business again, but based on a different concept. The results were better this time around. “The initial concept employed coffee booths. In 2008, I relaunched the business  based on what I call a mini-coffee shop concept, with each outlet having 4-5 tables and requiring a capital investment of Rp 100 million. The concept proved to be popular with the public,” said Odi, adding that the independent coffee shop concept is very appropriate as customers can gather while enjoying a coffee without having to interrupt their activities, such as shopping or sightseeing. Within less than a year, he had opened three Coffee Toffee outlets in Jakarta.
In 2010, Odi returned home to Surabaya, where he opened a Coffee Toffee outlet in Klampis, Surabaya. With his business growing rapidly, he says that the key to success is innovation so as to ensure sustainability. Based on its motto, We blended with our love, passion and enthusiasm, Coffee Toffee now has 120 outlets throughout Indonesia.
Maximizing Local Culture
To develop its business, Coffee Toffee has opted for franchising based on character matches between the company and its franchisees, which helps ensure harmonious business relationships between the two sides. Odi does not want an outlet to last for only 5 years and then close. That is why partnership is more important to Odi than simply the size of the investment.
Coffee Toffee also applies the “under-management” concept, meaning that anyone who has sufficient capital can invest in an outlet, which is then managed by Coffee Toffee based on a profit-sharing arrangement. This means that both profits and losses are divided up between the partners. Besides the above two systems, there are several outlets that are owned and operated directly by Coffee Toffee.
All of the coffee sold in Coffee Toffee outlets is premium quality Indonesian. Based on the Go Local Our Way concept, Coffee Toffee seeks to maximize the use of Indonesian resources. “All of the coffee served in our outlets is local coffee from Indonesia, for example, Mocca Java, Toraja Kalosi, Batukaru Bali, Gayo Sumatra and Linthong Sumatra. These coffee beans are famous all over the world,” explained Odi. To enjoy Coffee Toffee’s beverages, customers don’t have to pay through the teeth either. Toffee Coffee outlets also provide unground coffee beans so as to maintain flavor, and will grind beans for customers so that they can take them home.
Bank Mandiri Award
Odi Anindito’s well-thought-out business strategy earned him first place in the 2011 Mandiri Young Entrepreneur (WMM) competition, post-graduate and alumni category (catering).
Since winning the award, Coffee Toffee has benefitted from a wide range of assistance from Bank Mandiri, including media publicity and participation in national exhibitions, which have helped strengthen Toffee Coffee’s efforts to market its products among coffee lovers in Indonesia. Moreover, there are many Indonesians who pay top dollar to enjoy good cups of coffee sold in well-known coffee shops, when in fact the coffee comes from our own country.
Other forms of support provided by Bank Mandiri to Coffee Toffee include training and guidance from renowned motivators, and even meetings with a number of well-known CEOs. Odi said that the assistance provided had been very valuable.
While Odi dreams of spreading his wings overseas, for the moment he is prioritizing the growth of his business in Indonesia. “There is still a very big niche market at home that has yet to be tapped to the maximum,” he said.
Tips for Success
  • The advantages of Odi’s coffee shops are pricing and service. He says that his products are 50% cheaper than in other coffee outlets.
  • Offering coffee beans that are a mixture of Java – Mocha and Toraja Kalosi, which are known for their strength, flavor and aroma.
  • Running his business based on love, passion, enthusiasm.
  • Business Chronology
  • The idea of starting up Coffee Toffee first came to Odi when he returned from his studies in Melbourne, Australia, in 2005. While in Australia, Odi had worked part time as a barista in a coffee shop. It was then that he realized that 12 of the 31 coffees on offer came from Indonesia.
  • In 2006, Odi with his wife decided to open coffee booths in front of a number of convenience stores based on a capital investment of only Rp 5 million.
  • After 2 years, Coffee Toffee went bankrupt in 2008 after Odi’s business partner embezzled the entire business capital. Odi’s car and the family home had to be sold to pay off his debts.
  • Odi conducted an evaluation of his business system and made various managerial improvements. Determined not to fail again, Odi and his wife decided to establish Coffee Toffee as a legal entity. A partnership concept was agreed on as the way to boost Coffee Toffee’s growth.
  • After deciding to relaunch in Jakarta, the couple agreed to divide up the work between them, with Odi’s wife (Rakhma) being responsible for obtaining information on partnership and management systems. She also took part in SME training courses provided by a number of government agencies.
  • After having conquered Jakarta, Odi and Rakhma decided to try their luck back in their hometown, Surabaya, as well as expanding into other areas. Coffee Toffee now has 120 outlets in Java, Kalimantan and Sulawesi, with a turnover of billions of rupiah every month.
Source : Ide Bisnis Magazine