In case you’ve walked down Robinson Street or One Raffles Place, a shiny yellow storefront would’ve in all probability caught your eye. Espresso drinkers holding flashy yellow cups are more likely to have been seen within the neighborhood too.
Flash Coffee, the well-loved espresso chain from Indonesia, made its entrance into Singapore final October and now has 5 retailers right here. It first launched in January 2020, and now operates 50 places throughout Singapore, Thailand and Indonesia.
The tech-enabled espresso chain has loved robust traction in its markets regardless of the pandemic, with nearly all of its shops already attaining profitability and demonstrating the success of its enterprise mannequin.
The rapidly-growing chain was based by CEO David Brunier and COO Sebastian Hannecker. The duo began Flash Espresso as a single outlet in Jakarta, with the ambition to change into a completely tech-driven espresso chain.
Espresso That Leverages Upon Tech
In an interview with Vulcan Put up, David shared his remark concerning the espresso trade. It was principally not digitised and lots of manufacturers had been serving common high quality espresso at premium costs, making it largely unaffordable to the mass markets.
He defined that the excessive costs are principally pushed by spacious places, unoptimised staffing and under-utilised baristas. That was when the self-professed foodie and occasional fanatic realised there was an amazing potential to create a completely re-imagined buyer expertise within the espresso trade.
Proper after college, David spent greater than 4 years at European meals supply big Delivery Hero SE with the purpose of ultimately constructing a startup of his personal.
In 2019, Rocket Internet’s founders Oliver Samwer and Alexander Kudlich reached out to him and requested if he can be open to founding a brand new firm with them. Rocket Web is a Berlin-based tech incubator, and among the corporations it has helped kickstart embody Lazada and Zalora.
“It was additionally round that point that Luckin Espresso had their S$4 billion IPO after working for 18 months, which bought me excited and made me take a deeper look into the espresso trade,” mentioned David.
David describes the day he met co-founder Sebastian as “probably essentially the most impactful day for Flash Espresso”, as the 2 hit it off the second they met. That they had a really comparable thought of how they envisioned Flash Espresso to be.
A yr after its launch, Flash Espresso has developed right into a full fledged tech-driven firm that’s “able to assist the launch of a whole lot of shops within the subsequent months and energy 1000’s of our clients’ orders day by day.”
That is achieved by way of a myriad of technological processes that the model has included into its operations.
First, its client app permits clients to order and pay on-line, choose up their drinks or get them delivered, use Flash’s loyalty programme and participate in challenges.
The app additionally permits Flash to make use of e-commerce methods to accumulate and retain clients proactively, which reinvents the way in which espresso and F&B companies develop and construct their buyer bases.
It additionally permits Flash to draw clients who would have by no means independently handed by considered one of their retailers.
Flash additionally has a barista app, which is the bridge between the patron app and the respective retailers that customers order from. In keeping with David, it improves the operational effectivity of shops and permits performance-based incentives for its baristas, making certain an unparalleled buyer expertise.
Moreover apps, Flash can be engaged on implementing absolutely automated inventory counts and buy orders by way of sensor know-how. Moreover, it makes use of a centralised on-line configuration and monitoring system to keep away from the breakdown of apparatus and guarantee consistency of merchandise throughout completely different retailers.
Property tech softwares are used to know buyer circulate, determine excessive demand areas, and decide offline site visitors conversion charges.
Not A Run-Of-The-Mill Espresso Model
Moreover its technological capabilities, Flash additionally units itself aside from different gamers within the trade by way of different metrics.
For instance, the model prides itself on its affordability. A daily Americano at Flash Espresso goes for S$2.80 a cup, giving opponents a run for his or her cash.
David informed Vulcan Put up that many purchasers swap from different business espresso manufacturers to Flash Espresso, as they’re searching for increased high quality, but extra inexpensive espresso choices to take pleasure in day by day.
Regardless of its inexpensive pricing, it doesn’t compromise on high quality.
The chain’s menu is curated by 4 internationally-renowned barista champions, and the model additionally goals to supply clients with a espresso expertise they normally solely get at a specialty espresso store.
Moreover, the pandemic has modified the way in which customers order and eat espresso tremendously. Many now get their espresso delivered to them, and the Flash Espresso idea matches the brand new regular.
Rising A Espresso Empire
Most not too long ago, Flash Espresso raised US$15 million in Sequence A funding led by international tech funding agency White Star Capital.
Different buyers within the spherical, which introduced the corporate’s whole capital to US$20 million, had been Supply Hero-backed DX Ventures, International Founders Capital and Switzerland-based enterprise capital agency Conny & Co.
The staff is now planning to launch a further 300 retailers by the tip of 2021. It already launches three new retailers per week, however plans to carry the quantity as much as 10 per week.
That is fuelled by the numerous development in per capita consumption of espresso throughout the area. In keeping with David, Flash Espresso’s whole addressable market is value greater than US$80 billion.
As espresso schooling progresses in Asia, the demand for premium espresso and better high quality choices can be growing quickly. We’ll additional allow this demand by making premium espresso extra accessible to the shortly rising center class which is essentially unable to afford nice espresso as a consequence of its worth.
David Brunier, Co-founder and CEO, Flash Espresso
The Flash Espresso imaginative and prescient is to democratise high-quality espresso and make it accessible to Asia’s rising center class.
To achieve this purpose, the founders plan to construct a tech-driven powerhouse to construct new manufacturers throughout the area, top-of-class operational processes and a fully-integrated worth chain together with in-house manufacturing services to additional drive backward integrations.
It additionally plans to set up its regional headquarters in Singapore, the place they anticipate to rent over 90 new workers members by the finish of 2021.
“We’ll additional increase our core competencies of know-how, operational excellence, and model constructing as a way to be well-equipped to outperform the F&B sector in Asia,” mentioned David.
Featured Picture Credit score: Flash Espresso