Indonesia’s Fore Coffee sees Singapore as stepping stone to global expansion

[JAKARTA] The chief executive of Indonesian coffee chain Fore Coffee wants to have as many as 200 stores in operation by the end of the year, including the one in Singapore – set to open at Bugis Junction on Nov 9 – that will kickstart the company’s plans to expand overseas.

“Our presence in Singapore is a crucial step in our global expansion strategy,” said Vico Lomar in a recent interview with The Business Times.

The Jakarta-based Fore Coffee, which was founded in 2018, has 148 stores in Indonesia, making the brand the country’s fourth largest coffee chain by the number of outlets. Market leader Janji Jiwa has more than 900 outlets, Kopi Kenangan has 868, and Kopi Kulo has over 250.

Fore Coffee is the second Indonesian coffee chain to make its debut in Singapore this year, following in the footsteps of Kopi Kenangan, which opened an outlet at the Raffles City mall earlier this week after a successful expansion in Malaysia last year.

Lomar said that Singapore, as an international business hub, is the “perfect spot” for Fore Coffee to begin spreading its wings abroad, all part of a broader push to position the brand as a more upmarket one.

Before the Covid-19 pandemic struck in early 2020, the chain was known for its “grab-and-go” coffee shops that mostly targeted the mass market. But from now on, Lomar said the aim is to open larger stores to enable customers to enjoy the dine-in experience.

The company has reinvented itself as a premium coffee brand with an affordable price point. In Singapore, its prices will start from S$4.50 a cup, with the coffee brewed from Arabica beans that bear organic and fair-trade certifications.

Fore Coffee sells between 1.2 million and 1.5 million cups of coffee in Indonesia each month. Lomar said the goal is to achieve sales of 1,000 cups a day in Singapore.

In a press release, the company noted that Singapore’s coffee market presents a “compelling opportunity”, given that it is projected to grow at a compound annual growth rate of 5 per cent, reaching nearly US$1.3 billion by 2027.

“Singaporeans’ strong affinity for coffee, averaging six to seven cups per week, aligns perfectly with Fore Coffee’s mission,” the company said.

“The brand recognises the mature coffee market in Singapore, combined with a love for Indonesian beans, particularly Arabica. With an understanding of local preferences and a commitment to innovation, Fore Coffee is poised to flourish in Singapore’s coffee landscape.”

A year after the company was established, it raised US$8.5 million in a funding round led by East Ventures. SMDV, Pavilion Capital, Agaeti Venture Capital, Insignia Ventures Partners and several angel investors also took part in the round.

The company says it has recorded positive cash flow since the third quarter of 2021, and plans to leverage internal funds for its expansion.

Fore Coffee’s push beyond Indonesia comes at a time when many other tech-enabled coffee chains are also growing their footprint overseas. In Singapore, Fore Coffee will go up against the likes of China’s Luckin Coffee and Singapore’s Flash Coffee, both of which are expanding aggressively.