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Tomoro Coffee is a rising star in Indonesia’s coffee scene. Tomoro also has been known for Tomoro Coffee’s Branches that has expanded exponentially in such a short time. Founded in August 2022 by Xing Wei Yuan, also known as Mr. Star, the brand blends high-quality coffee with advanced technology and a forward-thinking business model.
The name “Tomoro” comes from “Tomorrow”, meaning “embrace the goodness and yearn for tomorrow”. It reflects the brand’s futuristic vibe, from its tech-driven operations to its modern branding.
Overall Tomoro Coffee’s Success
A. What has Tomoro Coffee achieved?
A few months after its first established, the coffee chain has built 650 branches across Indonesia with a few in China and Singapore.
Additionally, Tomoro Coffee targeted to open another 1,000 stores by 2024. And at the end of 2024, Tomoro Coffee targeted to reach 1000+ branches throughout Indonesia with an outlet in China, six outlets in Singapore, and 12 outlets in the Philippines, and all of this was (and will be) done without any franchise.
The rapid expansion of Tomoro’s outlets might be due to the increasing demand for coffee in Indonesia, which has been known for its rich coffee culture. In fact, World Coffee Portal predicts that the shop market of coffee chains in Indonesia will experience substantial growth, predictably surpassing 9,400 outlets by the end of 2028.
Tomoro Coffee also has established a roastery in May 2024 that aims to enhance the brand’s ability to control the quality and supply of its coffee products. “This roastery exemplifies Tomoro Coffee’s dedication to fostering a sustainable coffee industry in Indonesia, by establishing an integrated ecosystem from production to delivery.
With three production phases and premium quality coffee beans, our roastery is set to produce 2,400 tons annually,” stated Star Yuan, Director of Tomoro Coffee.
B. Its position in Indonesia’s coffee chain
Due to those accomplishments above, Tomoro Coffee has stood in 5th position as the largest coffee chain in Indonesia, behind Janji Jiwa, Kopi Kenangan, Lain Hati, and Starbucks.
C. Future Plan for Tomoro Coffee’s Branches
Tomoro Coffee has targeted to expand its branches to many territories throughout Indonesia.
Although it has reached 60 cities with 1000+ branches across the country, the CEO expresses that Tomoro Coffee has only touched one percent of the total coffee business in Indonesia. “Until now, Tomoro Coffee has not yet entered Papua and Maluku, even though there are many people there, the Indonesian market is very wide,” he said.
The dissatisfaction has made Yuan Xingwei, Tomoro Coffee’s CEO, set up a broader reach to 3000 outlets across southeast Asia, with an ambitious target of opening 2-3 outlets per day in 2025.
“We see that in Southeast Asia, there is potential for around 3,000 outlets,” concluded Wang.
The Secret Recipe of Tomoro Coffee’s Expansion
A. Ensuring efficiency effectively
Establishing a coffee business is not only focusing on the coffee’s quality, it also has to consider the production system that affects the whole marketing process. Tomoro Coffee designs a highly efficient production system concept that effectively lowers product costs while maintaining good-quality coffee.
For example, Tomoro Coffee uses a more advanced coffee machine than other competitors, namely Everysis. Everysis is a built in consisted modules and units that leverage rapid intervention of technology at a lower cost. The machine uses advanced machine structures that also support screen-touch model, allowing the user to use it easily without any high expertise.
B. Specific counting of a production cost needed on an outlet
Tomoro Coffee calculates the needs of each outlet carefully to ensure a clean profit margin. They consider both profit and occupancy of the outlet while also calculating the cost of production in detail, which will be tried to reduce effectively.
This calculation is a production system that will be replicated across all their branches, which effectively will produce the same result.
C. Comprehends each process
Beyond their use of efficient technology, Tomoro Coffee pays close attention to every step of its production process, from sourcing raw materials to delivering finished products. They also developed a CRM system through an app that offers customers affordable coffee via referral codes (which sometimes reduce the price of a coffee to USD$ 0.55).
That approach not only increases customer loyalty but also helps the company gather consumer data, such as customer demographics and preferred locations. This data is then used to identify strategic locations for new branches, streamline inventory to nearly zero waste, and further reduce production costs.
D. Branched in industrialized territory
What makes Tomoro Coffee unique is its decision to open branches in industrial areas rather than office zones, which are already dominated by larger coffee chains. With their affordable prices (especially through apps), Tomoro Coffee appeals to workers in these industrial zones.
Tomoro Coffee has smartly chosen to grow in industrial areas, focusing on the needs of local workers. For instance, its first branch in China opened at the Qingpu E Link World Industrial Park in Shanghai, a major logistics hub in the city’s west. This move highlights Tomoro Coffee’s commitment to offering affordable coffee for the working people in these regions.
E. Dominating the Branches in Indonesia
Expanding your coffee chain in Indonesia may be more profitable than other countries as its country has the highest percentage of coffee consumption in Southeast Asia in 2023 with its consumption reaching 370 thousand tons in 2021.
Although 90% of Indonesia choose packaged coffee due to its low price, Tomoro may take over the market with its coffee that is deemed to have (also) a lower price but a higher coffee quality than packaged coffee.
F. Big “provider”
Tomoro Coffee received USD$60 million in its first establishment by venture capital firm ATM Capital, a venture capital firm based in Chinese that focuses on Southeast Asian startups, located in Jakarta, Indonesia. This happened due to the CEO’s background that has managed to co-found and succeed in multiple other startups, such as J&T and oppo.
Conclusion
In just two years, Tomoro Coffee has changed the game in Indonesia’s coffee industry with its fast growth, innovative tech, and affordable prices. From one outlet to over 1,000 branches across Indonesia and even abroad, Tomoro’s success comes from a smart business model.
By opening stores in industrial areas instead of office districts, using advanced machines like Everysis, and carefully managing costs, they’ve made high-quality coffee available to more people.
With a big $60 million investment and a CEO who’s already built successful startups, Tomoro also uses customer data to find the best locations and streamline operations.
As the country with the highest coffee consumption in Southeast Asia, Indonesia offers huge opportunities, and Tomoro is taking full advantage. Their ambitious plans for more branches both locally and internationally show that they’re not just growing—they’re aiming to lead the coffee market.
Smart planning and adaptability can go a long way in building a thriving business. By focusing on efficiency, whether through advanced technology like Everysis or carefully calculated production costs, they’ve shown that quality doesn’t have to come with a high price tag. Their decision to target industrial areas rather than saturated office zones highlights the importance of understanding your audience and finding opportunities. Additionally, their use of customer data to improve operations and make informed decisions proves how valuable it is to invest in tech-driven strategies. Overall, Tomoro’s journey shows that with innovation, attention to detail, and a strong vision, businesses can achieve incredible growth, even in a competitive market.