Asia Pacific Journal of Business Economics and Technology

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Alternative Business Development Strategy of Tung Tau Coffee Shop

Yulia*1, Iwan Setiawan2

12
Agribusiness Department, Bangka Belitung University, Bangka, Indonesia
*Corresponding author: yuliaubb@gmail.com

Abstract

The pattern of modern society today tends to consume practical food or drink. One of
them is a businessman who took advantage of the opportunity, establishing Tung Tau
Coffee, a coffee shop in Pangkalpinang City. Competition is very high in the coffee shop
business, resulting in a decrease in the number of visitors who come to the Coffee stall. This
research aims to formulate alternative business development strategies for coffee shops to
overcome the tendency of falling visitor numbers. This study uses qualitative descriptive
analysis methods with SWOT approach and uses example withdrawal methods with
purposive sampling. Alternative strategies obtained to overcome the tendency to decrease
the number of visitors based on SWOT analysis include implementing market penetration
methods, implementing alternative product marketing channel development, implementing
market development models, and determining additional new product suppliers.

Keywords: : Tung tau Coffee, SWOT, alternative strategies

1. Introduction
The tendency of modern society's current patterns of life, especially urban areas, makes
most people tend to eat fast food practically to meet their nutritional needs. Likewise,
prestige factors and trends greatly affect the community in having a food or drink to be
consumed (Watampone, 2016). One would prefer to eat food in a café or restaurant that has
a fun, unique and interesting concept. It is utilized as a business opportunity by some
individuals or creative business people to provide interesting places to eat such as cafes,
stalls, or restaurants (Hanum et al., 2009). Competition of restaurants, cafés and stalls in the
tight city of Pangkalpinang resulted in a decrease in growth. Every café or café is required to
give its best to adapt to changes that can occur at any time. Many of the existing cafes or
stalls offer advantages that make it difficult for cafes to gain market share (Yulia et al., 2020).
Today the café is not just a place to eat and drink but the café that has now become a
place to gather, chat, do work and lifestyle trends of modern society today (Fauzi et al.,
2017). For now in the development of the times, existing stalls offer an attractive concept for
consumers to find the interest of consumers to visit the stall, among others, creating a
comfortable place, fun, interesting, using wifi, live music and several other facilities.
Among the cafes or stalls that exist, there is a place oriented to coffee shops or better
known as coffee shops. Coffee shop is a business that leads to food service that provides a
menu of various types of processed coffee products (Hanum et al., 2009). Because with the
coffee shop, coffee lovers can drink coffee products by making and serving different coffee
products with a good taste (Pandji., 2017). A typical quality menu and a comfortable café

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atmosphere are considered by consumers in choosing coffee as a refreshing place or gathering

with friends or family.
Warung tung tau atau Waroeng tung tau adalah nama yang diambil dari pendirinya
yang berdagang sejak tahun 1938 di kota sungailiat, yang beralamatkan di Jl. Muhidin No. 87,
Sungailiat-Bangka, dengan nama lengkap Mr. Fung Tung Tau ia memulai karirnya berdagang
di kota Sungailiat. The name Tung Tau has its own history for the city of Sungailiat because
it is the first coffee shop in the city of Sungailiat, so it is not surprising that many officials or
people who have come to Warung Tung - Tau, either from Bangka island or outside the city,
have their own nostalgic memories in Waroeng TungTau.
Warung kopi ini menjual berbagai jenis olahan kopi yang berasal dari berbagai daerah
yang ada di Indonesia. Selain itu, warung kopi juga menawarkan suasana warung kopi
dengan gaya bangunan minimalis dan memanfaatkan rooftop sebagai tempat yang dapat
digunakan oleh pengunjung. The sustainability of a business is very important for a
businessman. Business people will do things that can make the business last or last and not
stop. Business will also continue to run when the business that is run is in demand by
consumers, especially in the coffee shop business, customers or consumers visit many coffee
shops that we run. In its planning, the business has targets that want to be achieved, among
others, visitors who come to the place of business. Coffee shop consumers experience highly
fluctuating amounts each month.

Table 1. Here is the number of visitors to Tung tau coffee shop in March 2021-
October 2021.
Data per month/year Number of visits
March 2021 890
April 2021 940
May 2021 860
June 2021 770
July 2021 990
August 2021 1050
September 2021 878
October 2021 940
Source: Tung tau coffee shop, 2021

Based on Table 1. The number of visitors fluctuated during the period from March 2021
to October 2021. Tung tau coffee shop previously did promotions to attract visitors dating,
namely by doing promotions on social media accounts such as facebook, Instagram and
giving discounts of 30% to drink on the spot or take home. Based on the description, then the
formulation of this research problem regarding Alternative Business Development Strategy of
Tung Tau Coffee Shop to overcome the tendency of the decline in the number of visitors
during the covid 19 pandemic.

2. Literature Review
2.1 Influencing Internal Factors in Strategy Formulation
The internal environment that is the strength of the herbal coffee beverage business
instant "Oriental Coffee", there is a good relationship with the ingredient supplier the main
standard, the product has fulfilled the legality aspect, the packaging attributes are already
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complete, communication between owners and employees is well established, and quality
the product produced is good enough (Mursid, 2015). The internal environment that
becomes a force The main of Phoenam Kopitiam is a quality product, the taste of the product,
and product variations. Internal environmental analysis, which became a strength for De
Koffie-Pot was very strategic location, the quality of raw materials, the taste and quality of
coffee, human resource Qualified and trained (Sutarjo, 2011).

2.2 External Factors to Consider in Strategy Formulation

The environment external, which becomes an opportunity for Oriental Coffee is the
development of trends healthy lifestyle, increased public knowledge about quality and legal
aspects of a product, and the development of technology (Yulia et al., 2019a). Technology.
The external environment that became The opportunity for De Koffie Pot is the increasing
number of tourists domestic / foreign to Bogor, people are more likely to choose food
modern, high rate of population growth, increase in regional income and people's purchasing
power, and customer loyalty (Nawawi, 2003).

2.3 Development Strategy

Theresearch revealed that the strategy development that must be done by the
company based on SWOT analysis Seven strategies were then sorted, and which became The
first priority strategy is to improve the quality of products and services. after-sales to the
distributor (Syafira R, 2017). (David FR., 2012) The strategy must be done by Phoenam
Kopitiam in its marketing development Based on SWOT analysis is to conduct vigorous
promotion and aggressive to get more consumers and build a brand Public awareness of
products or services on Phoenam Kopitiam. Strategy development that must be done by the
company based on SWOT analysis There are seven strategies and that comes first in the
strategy (Hatta et al., 2019). This development is selling innovation.

3. Research Method
3.1 Location and Time of Research
This research was conducted at Tung Tau Coffee Shop located in Pangkalpinang. The
stall was chosen because it can still survive even in the midst of the Covid-19 pandemic
When data collection is done for three months, namely in August to October 2021.

3.2 Types and Sources of Data

The types of data used in the implementation of this study are primary and sekuder data.
Primary data is obtained by conducting direct identification and interviews with
respondents (Pandji., 2017). Secondary data is obtained from various credible and relevant
sources such as, books, domestic and foreign journals, research that has been done before,
news articles, the Central Statistics Agency and Pangkalpinang City.

3.3 Method of Determining Respondents

The determination of respondents in this study is purposive sampling based on the
consideration that respondents have thorough knowledge of the business conditions of
coffee shops both internally and externally (Nawawi, 2003). Based on this, the respondents
of this study are the owners or supervisors of coffee shops who best understand the
condition of coffee shops both internally and externally as a whole, especially regarding the
problems, planning, and development of coffee shops
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3.4 Data Collection Methods

The data collection techniques used in this study are observation, interview and
discussion. Observation is carried out by making direct observations about operational
activities at kopi tung tau. The interview conducted in this study aims to find out the
business conditions in a directly from the respondent, and done to respondents who are
considered to understand the condition of the business (Yulia et al., 2019b). Discussions
were conducted to propose alternative new business development strategies that will be
submitted to kopi tung tau.

3.5 Data Processing and Analysis Methods

The analysis used in this study is descriptive analysis using SWOT analysis
techniques (Yulia et al., 2019). SWOT Analysis (Strength, Weakness, Opportunities,
Threat). SWOT analysis is done to identify internal factors (strengths and weaknesses) and
external factors (opportunities and threats) so that alternative formulation of strategies can
be carried out. Opportunity (O) and threat (T) are then faced with strengths (S) and
weaknesses (W) to determine positions in a matrix (Yulia et al., 2019).
(Adi, 2019) The SWOT matrix is an important matching tool in helping managers
develop four types of strategies:
a. S-O strategy (strength-opportunities), this strategy uses the company's internal
strengths to take opportunities outside the company.
b. W-O strategy (weakness-opportunities), this strategy aims to minimize the
company's internal weaknesses by utilizing external opportunities
c. S-T (strength-threat) strategy, through this strategy the company seeks to avoid or
reduce the impact of external threats with its power.
d. W-T (weakness-threat) strategy, this strategy is a tactic to survive by reducing
internal weaknesses and avoiding threats.

4. Result
4.1 Environmental Identification
Identification of the company environment needs to be done before formulating a
strategy (Chiquito & Wijayangka, 2020). Good environmental identification allows
companies to anticipate every opportunity and strength to address threats and weaknesses
as effectively as possible (David FR., 2012). Therefore, in the formulation of the development
strategy "coffee shop tung tau" it is necessary to identify the company's environment based
on information obtained from internal and external parties first.
4.1.1 Internal Environment
1. Management
The management function of coffee shops consists of two main activities, namely
planning and organizing(Caro & Martìnez-De-Albèniz, 2015). The explanation is as follows :
a. Planning
Coffee shop in its planning begins with formulating a vision and mission. Starting
from the formulation of vision and mission, the owner plans a place that will be used as a
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place of business, the place used is around the city of Pangkalpinang. The owner chose
this place because it is on the side of the highway and the place is easy to find. The place
used by the owner is a rental place that is designed in such a way to be made into a
comfortable place with the concept of the room used by the owner to meet the needs and
comfort of visitors when enjoying coffee, surrounded by glass to give the impression of
spacious, elegant, and modern.
The next planning is related to the raw materials that will be used by the owner. The
owner uses raw materials of bji coffee that comes from several regions in Indonesia. The
owner buys coffee beans to be processed into drinks from coffee bean suppliers in
Pangkalpinang City, the owner is accompanied by the owner's confidant in choosing
coffee beans to be used in coffee shops, because the owner prefers the best quality of
coffee beans and also looks at the prices offered by suppliers.
Traveling with time and due to the many requests from customers who are at the base
of the betel nut who want to bring TungTau Special Bread off the island as by or typical
hand fruit from Bangka through Depati Amir Airport, Traveling with time and due to the
many requests from customers who are at the base of the bethel nut who want to bring
TungTau Special Bread off the island as by or typical hand fruit from Bangka through
Depati Amir Airport.
b. Organizing
Coffee shops have a written and clear organizing structure. Therefore, every job done
by employees is clear and directed towards the responsibilities they have. The
organizational structure of the coffee shop shows that the top management position is
held by the owner, Mariany, S.Kom. The eldest daughter of Alm. Mr. Budjang Bunawan
& Mrs. Maria Matali. With an awareness of his love for Bangka Island and the common
vision to preserve the legacy of the family that has historical value makes the family tung
tau determined to develop this declining family business.
c. Employee placement
Coffee shops in staff placements are very concerned about the skills of employees who
will handle existing fields. The owner does not want origin in putting people to work with
him in running a coffee shop business. Coffee shops have criteria in their recruitment,
kirteria owned in addition to competent in their fields, namely honest, high loyalty to coffee
shops, and willing to work hard. Employee recruitment is done if there is an empty position
or needed. Existing employees are emphasized to be friendly and polite to customers who
come, so that customers feel happy when visiting.

2. Marketing
Marketing is the process by which a company creates value for customers and builds
strong relationships with customers, with the goal of capturing value from customers in
return(Kotler, Philip., Keller, 2013). The marketing mix consists of all the things a company
can do to influence demand for its products.
a. Product
Coffee shops have products in the form of beverages from several regions that are mixed
using special coffee making tools and some types of foods that are useful to accompany
while drinking coffee. The type of coffee served in coffee shops comes from several
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regions in Indonesia, among others there is gayo coffee originating from Aceh, lintong
coffee and sidikalang coffee originating from North Sumatra, Lampung coffee originating
from Lampung, bajawa coffee originating from Flores, kintamani coffee originating from
Bali, toraja coffee originating from Sulawesi. In addition to coffee drinks, coffee shops
also provide snacks to accompany when drinking coffee, the food provided includes
toast.
b. Distribution (Place)
Coffee shops have had no difficulty in obtaining the raw materials needed to produce
their coffee. This happens because of a good relationship between the owner and the
supplier that has been established for a long time. Coffee shops offer their products
directly to consumers.

c. Price
Price is the amount of money that consumers have to pay to obtain the product. The
price of products offered by coffee shops is very affordable, for the price of coffee drinks
are around Rp 20,000 to Rp 40,000, depending on the type of coffee ordered and the
type of concoction desired by consumers.

d. Promotion
Promotion is the activity of conveying the benefits of the product and persuading
customers to buy it. Promotional activities that have been done by coffee shops and
considered the most effective by the company are by word of mouth. Coffee shops have
other promotions through Instagram social media but less managed media so that
promotions from social media are not very well utilized by the company.

3. Keuangan
Warung kopi hanya menggunakan modal pemilik dalam pendirian usahanya. Biaya
pengembangan bisnis diperoleh dari perputaran keuntungan warung kopi. Hal ini terjadi
karena pemilik mampu membiayai pendirian warung kopi dan tidak mau memiliki
tanggung jawab terhadap pihak lain yang mungkin nantinya dapat merugikan warung
kopi. Coffee shops already have financial records that are well done by the accounting
section. The accounting department is responsible for financial activities both income and
expenses made by coffee shops. The recording system is already using technology and a
supportive system. All financial activities will be incorporated directly into the excel
program on the computer every day and will be glued every week.

4. Production/ Operations
Raw materials used in producing the products offered, coffee shops already have
permanent suppliers, especially coffee suppliers, coffee suppliers are in Pangkalpinang
City, the type of coffee beans desired by coffee shop owners are on this coffee supplier.
The coffee used is the original coffee from several regions in Indonesia, therefore there is
rarely a shortage of raw materials. For the availability of raw materials, the owner every 2
weeks shop for raw materials to suppliers. Coffee shops in the coffee bean mill using the
N900 Coffee Grinder, for serving coffee drinks such as espresso, cappuccino uses Sigmatic
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Coffee Maker 100 SS tool. The presentation of other coffee served by coffee shops is done
in several ways, depending on the order by consumers.

4.2 External Environment

1. Economic Power
Economic factors have a direct impact on the potential appeal of diverse strategies.
Economic factors that affect coffee shops include:
a. Growth of the economic sector
Gross Regional Domestic Product (GDP) on a constant (real) price basis can be used to
indicate the pace of economic growth in aggregate from year to year. The PDRB on a
constant price basis is based on the basis of a given year. In aggregate there was an
increase in economic growth in the city of Pangkalpinang where coffee shops are
located. This condition shows a positive correlation between the rate of economic
growth and the resulting GDP value.
b. Price of Raw Materials
Raw materials are goods used in making products. The main raw material used by coffee
shops is coffee. Therefore, fluctuations in the price of raw materials affect the
sustainability of the business. Coffee is the main raw material needed to meet the needs
of consumers. The price of coffee greatly affects the production of coffee to be made by
coffee shops.

2. Social, Cultural, Demographic, and Environmental Forces

Social, cultural, demographic, and environmental changes have a real impact on
almost every type of product. Social, cultural, demographic, and environmental trends
shape the way people live, work, produce, and consume. Trends and changes in the
social, cultural, demographic, and environmental of coffee shops will be explained as
follows:
a. Lifestyle Trends
Lifestyle trends can shape an individual's way of life and have an effect on their
consumption. Trends that are formed can create different consumers, even create the
need for different products and strategies. This indicates an increase in purchasing
power and consumptive attitudes from the community. According to table 2 it is seen
that there is a trend of people preferring to spend money on food consumption rather
than non-food. Practical lifestyle is also seen from table 2, where the average per capita
expenditure per month of the food and beverage goods group continues to increase from
year to year. Increasingly high mobility makes people prefer to consume finished food
and drinks. Despite having a practical lifestyle, the increasing level of education and
economic well-being is also changing the way people pay more attention to health.
Therefore, people still pay attention to the quality of food or finished drinks consumed.
This is a business opportunity to process coffee in the form of food or finished drinks.

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Table 2. Average per capita expenditure per month of food and beverage goods group
(rupiah)
Group of goods 2016 2017 2018 2019
Eggs and milk 24.163 26.025 28.357 29.196
Food and drink 102.645 113.834 122.600 139.223
Food 57.570 46.639 57.956 66.899
Non Food 641.258 764.890 886.690
560.823
Total 745.201 827.756 973.803 1.122.008
Source: BPS 2020

b. Demographics
The number of people in Indonesia is increasing every year. There is a change in
population density in Pangkalpinang City which is the marketing area of coffee shops
that increases from year to year. Population increase will immediately increase the
number of needs for food products, especially food. This indicates an opportunity to
develop a coffee shop so as to get greater profits.

3. Technology
The use of information technology can provide benefits to companies related to
communication, information access, data management, and corporate decision making.
Technology can benefit companies by reducing costs and improving access when
coordinating with outside the company. Coffee shops use information technology in the
form of the internet through social media, namely Instagram, which makes it easier for
warungs in terms of marketing so that consumers know products easily.

4.3 Strengh-Weaknesses-Opportunities-Threats Matrix Analysis (SWOT)

After conducting an analysis of the company's internal and external environment, it can
be done matching the results of the analysis by developing alternative strategies based on
strengths, weaknesses, opportunities, and threats in the company environment(Yulia et al.,
2019). Based on the swot matrix analysis, alternative strategies that can be done are:
S-O Strategy
 Carrying out market penetration
Market penetration is a growth strategy in which a company focuses on selling existing
products in a pre-existing market. Market penetration in this case aims to maintain or
increase market share, safe from market growth dominance and mature market
restructure of what competitors do. Things that can be done in this case are as follows:
Increase the amount of production output of power companies owned by coffee shops
and promote to the community vociferously and routinely.

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W-O Strategy
• Implementing the development of marketing channels
Marketing channel development is a business growth strategy where business people try
to sell products that already exist in the existing market. In this case, coffee shops use
this strategy to deal with the problem of parking lots that are less widespread but
people's purchasing power increases, and the thing to do is make online sales, by
working with existing online transportation companies.
• Better use of technology in promotion
Technology is increasingly developing and the utilization of this technology is very
useful for the lives of many people, especially in terms of doing business, very helpful in
the introduction of the business that is run and the products offered without having
consumers see or come to the place directly but with technology consumers can know
what products are offered.
S-T Strategy
• Carrying out market development
Market development is very important for companies to do in order to expand the range
of products for sale. Market development that needs to be done in this case in selling
products or marketing products in new markets, which has never been done before in
that market. Companies in reaching new markets can promote products to attract
consumers in buying products offered by the company.
W-T Strategy
• Add a new supplier
Overcoming weaknesses with the threats possessed by coffee shops can be applied
alternative strategies that are looking for new suppliers for raw materials. This aims to
overcome the price of raw materials that tend to increase. The existence of a new
supplier with a lower raw material price than the previous one and has a good quality of
coffee beans allows the company to keep selling products at the same price to
consumers.

Table 3. SWOT Matrix

Strength: Weaknes :
Internal
1. Very strategic location 1. Coffee serving
2. Large pakir land techniques are still less
3. Comfortable and varied
Eksternal attractive place 2. Product availability is
still limited
Opportunity: SO strategy: WO strategy:

1. The market is still Carrying out market Carrying out the

growing and wide
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open. penetration development of marketing

2. The development of (S1,S2,S3,O1,O2,O3) channels
production technology (W1,W2,O1,O2,O3)
is easy
3. Development of
information and
communication
technology

Threat: ST Strategy: WT strategy:

1. Very high competition
among products Carrying out market Add new suppliers
2. The price of raw development (S1,S2,S3,T1) (W1,W2,T1,T2
materials that tend to
increase

Source: Primary Data, 2021

5. Discussion
Tung Tau coffee shops is that coffee shops can implement several alternative strategies
that exist in overcoming the tendency to decrease the number of visitors due to the influence
of the covid-19 pandemic. And for the next researchers to be able to continue this research by
adding research methods to get priority alternative strategies that can be run by coffee shops.

6. Conclusion
Based on the results of the analysis conducted on the coffee shop obtained conclusions,
namely in the internal environment there are three strengths and two weaknesses and the
external environment there are three opportunities and two threats. From the results of
SWOT matrix analysis, there are several strategies that can be done, namely Implementing
market penetration, Implementing marketing channel development, Implementing market
development, Adding new suppliers.

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