Hey! Kafe ramps up local expansion plan

Indonesia-based digitally-native beverage startup, Hey! Kafe, is expanding its local footprint with 300 stores by the end of next year.

According to the company, the brand’s expansion plan will be supported by an asset-light model backed by technology. That means a majority of its outlets will be compact booths that minimize capital expenditure and facilitate Grab & Go delivery service.

Online delivery orders are projected to account for 70 percent of the brand’s sales.

Founded by Edward Djaja, who is also the founder of Seven Retail, Hey! Kafe has opened 60 stores across the country since its launch in June last year.

Focusing on the product development process, Hey! Kafe tests more than 20 product concepts each month, targeting the young customer segment with more than 12,000 cups of beverages sold daily.

“Here in Hey! Kafe, our north star metric is same-store sales growth, which enables the brand to achieve stellar unit economics,” said Djaja. “We are proud to say that our strategy has resulted in a payback period of under 12 months, which is a key milestone for us to scale rapidly in a sustainable manner in the coming years.”

The beverage retailer is supported by several investors, including Trihill Capital, which backed the company in the seed round. Besides its expansion plan, Hey! Kafe also plans to launch an in-house mobile application next year.