CHAPTER I INTRODUCTION 1.1 Background Dunkin' Donuts Started
CHAPTER I INTRODUCTION 1.1 Background Dunkin' Donuts started its business in Indonesia with its first store built in 1985 at Jalan Hayam Wuruk, Jakarta. Followed by the arrival of new competitors of other national and multinational donut companies that enter Indonesian market, there are Country Style Donuts from Canada, Donuts Xpress from Australia, Krispy Kreme from United States, Mister Donut from Japan, J.Co Donuts and many more. Dunkin' Donuts successfully expand its market network in Indonesia and open more than 200 stores which spread in various major cities of Indonesia, such as Jakarta, Tangerang, Bogor, Bekasi, Depok, Surabaya, Bandung, Bali, Medan, Yogyakarta, Makassar, etc (Dunkin’ Donuts Indonesia, 2014). Meeting the challenges from multinational and local competitor who dominate donut market in Indonesia such as J.Co Donuts and evolving coffee shop business sector is not easy. According to coffee consultant, Adi Taroepratjeka, the increasing standard of coffee drinking in the community is one of the causes of the increasing number of coffee shops in Indonesia. Starting from just hanging out and looking for a free internet network in the coffee shop, but now the coffee itself is also favored by teenagers to adulthood (Kharina Trianand, 2014). Data from the International Coffee Organization (ICO) two years ago noted that the average growth of coffee consumption in Indonesia was two percent 1 higher than the growth in the world. If the world grows four percent in 2012, it turns out that growth in Indonesia reaches six percent (Kharina Trianand, 2014). Table 1.1 Table of Growth of Coffee Consumption in Indonesia and All Exporting Countries Survey of Growth in Growth in Growth in 2012 2013 2014-2018 Domestic consumption by 6.35 % 6.84 % 8.47 % Indonesia Domestic consumption by all 3.11 % 1.47 % 6.85 % exporting countries Source: International Coffee Organization, 2011.
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