Analysis of data on coffee retails businesses (CRB) have been conducted
based on data from Zomato on: 1) Characteristics of coffee retail business; 2)
geographic distribution of coffee retail business based on ratings and; 3)
significant factors that affect coffee retail business.
The study identifies 1962 establishments in CRB in Jakarta and greater
Jakarta, classified into several main cuisine type establishments: Café (C)
with primary business on coffee; Establishments classified as Café-Asian (CA),
Café-Asian-Western, Café-Indonesian (CID), Café Restaurant and
Café-Western—businesses where coffee based menu items as well as other specific
food, drink and dessert items are equally important; Café-Bakery and
Café-Dessert establishments which specialize in baked and dessert items with
coffee based items as significant complementary menu items.
It has been identified that CRB operate in main location types: Apartment
/Housing Complex (AHC), Airport (AIR), Cinema & Recreation Site (CRC), Food
Center/Complex/Court (F), Shopping Mall (M), Non-attached Property (NAT),
Office Complex (O), Ruko Complex (RU), Train station (ST), and Universitas (U).
Zomato’s Average Rating (AR) (0-5 rating) of CRB by clients on
establishments sampled (N=532) range from the minimum of 2.0 to the maximum of
4.7. The cost for 2 people (CF2) range
from IDR 40 to 600 thousands: CF2 of establishments in the lowest 25% is less
than or equal to IDR 100 thousands; 50% of establishments have CF2 less than or
equal to IDR 135 thousands, another 50% above that; 75% of establishments have
CF2 at or less than IDR 160 thousands; the 95% confidence interval mean of CF2
is IDR 140 to 152 thousands.
The menu characteristic investigation surveyed 57 establishments of
above cuisine types, except for Café-Asian. Groups of menu items are classified
and the averages with 95% confident intervals were calculated as shown below.
MENU ITEMS
|
Avrg.
|
95% CI
|
Drink (ice/hot counted separate)
|
46
|
+/- 7.9
|
Coffee based
|
16
|
+/- 2.2
|
Tea
|
8
|
-
|
Smoothie/yogurt
|
3
|
-
|
Frappe
|
3
|
-
|
Juice
|
5
|
-
|
Other
|
17
|
-
|
Meal/Main Dish (incl salad & soup, burger, sandwich)
|
24
|
+/- 6.7
|
Western & Non-Asian
|
14
|
-
|
Asian
|
12
|
-
|
Indonesian
|
9
|
-
|
Cultr unsp
|
7
|
-
|
Bread & Dessert
|
18
|
+/- 5.5
|
Ice cream/Gelato
|
4
|
+/- 0.6
|
Non dessert Snack (e.g. siomay, tahu goreng)
|
8
|
+/- 1.5
|
Children menu
|
1
|
+/- 0.3
|
TOTAL
|
89
|
+/- 15.5
|
Menu items of each cuisine type establishments, except Café-Asian, have
also been surveyed and presented in the latter part of the document.
In terms of geographic distribution of coffee retail outlets and their
ratings, it was found that they are present in clusters, e.g. in Menteng,
Petogogan and Kelapa Gading Timur. Most clusters are present in South Jakarta.
While the least number of clusters are in East Jakarta. In the greater Jakarta
region, most clusters are in the south-west of Jakarta Province. There are also
smaller clusters of coffeee retail outlets to the south of Jakarta, and the
least number of clusters outside the Province, is to the south-east.
Ratings are dominated by mid-rate outlets 3.1 - 3.5 (rating of 0 to 5)
and 3.6 – 4 and. Higher rated outlets, in Orange (4.1-4.3) and Purple (4.4 -
4.7) are mostly found in South and Central Jakarta. No Orange or Purple rated
coffee outlet is identified in East Jakarta. There are only few lowly rated
outlets, in Green (2.6 - 3.0) and Red (2.6 - 3.0) which are present in all
Kotamadyas. The study also investigates geographic distribution for each
Kotamadya and are presented in the latter part of the document.
Regression models have been developed to identify significant factors
that affect Average Rating (AR) and
Number of Votes (NV) as proxys for businesses that are well operated.
AR regression models that have been developed can explain about 50 % of
factors affecting AR. The other 50% of factors are not accounted for by the
models. Statistically significant factors that affect AR are:
-
Number of votes (NV) has a positive relationship
with AR—an increase in NV will increase AR;
-
Cuisine Type Café Indonesia (CID) compared to
the reference cuisine, Café (C) has a negative relationship with AR—the change
from C to CID will decrease AR;
-
The direction from the center of Jakarta (DRCT)
in the South East (SE) compared to the reference direction South West (SW), has
a negative relationship with AR;
-
Cuisine Type Café Bakery (CB) compared to the reference
cuisine, C has a negative relationship with AR;
-
Cost for two (CF2) has a negative relationship
with AR—an increase in CF2 will decrease rating;
-
Location Type at the Airport (AIR) has negative
relationship with AV compared with reference location in the Non Attached
Property (NAT).
NV regression models that have been developed can explain about 28-30 %
of factors affecting AR, which are low percentages—means there are many other
important factors that have not been
included in the models. Findings are:
-
Cost for 2 (CF2) has a positive relationship
with NV which “contradicts” finding of AR models. This may mean that the market
is not price sensitive to certain and/or good quality menu items;
-
Cuisine Type Café Western (CW) and Café Dessert (CD) compared to the reference
cuisine type, Café (c), can increase NV;
-
Location type Non-attached property (NAT) will
increase NV more compared to other location types;
-
Direction from the Central of Jakarta from the
South-East also has a negative relationship with NV, when compared to the
reference direction, South-West.
See full report at: https://www.dropbox.com/s/7uqkhz6r3ubcvr5/ANALYSIS%20OF%20COMPETITION%20IN%20THE%20RETAIL%20COFFEE.docx?dl=0
