Recently, Indonesian homegrown coffee chain Fore Coffee officially launched its IPO, raising about US$23 million on the Indonesia Stock Exchange (IDX). This marks an important milestone for the brand often dubbed the “Luckin of Indonesia” as it takes its first steps into the capital market. The IPO comes at a time when Indonesia’s coffee market is booming, with forecasts of 11% compound annual growth over the next five years, showing enormous potential.
Since its establishment, Fore Coffee has been frequently covered and interviewed by International Coffee News. You could say Fore Coffee is an old friend to us. But in what ways has this brand, born under the influence of the “Luckin model,” carved out its own identity, and what changes and opportunities will its IPO bring to Indonesia’s coffee market? Let’s take a look back.
The Beginning: Inspired by Luckin
As early as 2018, when China’s Luckin Coffee was rapidly rising with its innovative online retail model, it caught the attention of Indonesia’s leading venture capital firm East Ventures. Inspired by Luckin’s model, East Ventures’ founding partner Willson Cuaca incubated Fore Coffee.
Fore Coffee has been called the “Luckin of Indonesia” largely because of its similar business approach. Like Luckin, Fore Coffee adopted an O2O (online-to-offline) model where users order through a mobile app for delivery or pickup. Both companies place great emphasis on building a strong technology platform and use data analytics to optimize operations and understand customers.
While their expansion speed differs, Fore Coffee has also grown quickly. By September 2024, it had 217 stores across 43 cities in Indonesia and Singapore, with 61 new outlets added in 2024 alone. According to its IPO filing, 76% of the raised funds will go toward expanding its store network over the next two years, targeting an additional 140 outlets. Another 18% will fund new donut shops through its subsidiary, while the remaining 6% will be working capital. Importantly, with market expansion, Fore Coffee’s revenue surged by 135% year-on-year, with strong growth in both gross profit and EBITDA.
But Fore Coffee isn’t just a copycat. In its marketing, it emphasizes social media and brand collaborations instead of Luckin’s early heavy subsidies. More importantly, Fore Coffee highlights local identity: it sources premium Indonesian Arabica beans through its sister company Otten Coffee, and has launched Jamu-inspired beverages—based on traditional herbal remedies—that gained popularity during the pandemic for their perceived health benefits.
By Q4 2021, Fore Coffee had already turned profitable, with high gross margins. Its diversified store formats and respect for local coffee culture have helped it chart a development path rooted in Indonesia.
Different Markets, Different Paths
Although it’s nicknamed Indonesia’s Luckin, Fore Coffee has its own unique insights into the local market, since Indonesia and China are ultimately very different. Based on shifting consumer trends, it continues to refine its strategies.
In a 2022 interview with International Coffee News, Fore Coffee described how consumption patterns shifted before and after the pandemic. “Before COVID-19, 60% of our orders came from dine-in, 40% from delivery. After COVID-19, online orders surged to 55%, with dine-in dropping to 45%. Online sales really supported us during that period,” said CEO Vico Lomar.
Lomar has over 20 years of experience in the food & beverage sector. He previously held leadership positions at Dunkin’ Donuts SEA and Indonesia’s Maxx Coffee, and also founded his own café brand, KOPI ALUMNI, which blended modern and traditional styles.
As the market normalized post-pandemic, he observed, “People still enjoy meeting friends and family in cafés. Because of this, café profits have recovered to 70–80% of pre-pandemic levels.” He also noted consumption differences: “Jakarta consumers were more cautious about going out, while those in Indonesia’s second-tier cities were bolder. Spending in second-tier cities has grown by 20% in the last two years.”
Today, Fore Coffee operates three store formats—flagship stores, medium stores, and satellite shops—to serve everything from social gatherings to grab-and-go needs.
Indonesia’s coffee market has tremendous growth potential. As the world’s fourth-largest coffee exporter, the country has deep coffee-growing traditions. With GDP per capita rising, young consumers and the middle class are now the main drivers of demand. According to a December 2024 Redseer Analysis report, the Indonesian coffee market will grow at an 11% CAGR, reaching a potential size of US$12.6 billion in five years. Meanwhile, Fitch Solutions estimates consumer spending on coffee will grow at an average of 8.2% annually, rising from US$1.7 billion in 2020 to US$2.2 billion in 2024.
“We see enormous opportunities in Indonesia’s coffee market, and this IPO gives us the resources to seize them,” said Lomar. He views the IPO as a strategic move to fuel expansion and solidify Fore Coffee’s position in a rapidly growing market.
Competing in a “Red Ocean”
Despite the huge potential, Indonesia’s coffee market has become fiercely competitive.
Global giant Starbucks holds a dominant presence: Indonesia is its 10th largest market worldwide, with 581 stores by the end of FY2023. At the same time, local rivals are rising rapidly: unicorn Kopi Kenangan, fast-growing Janji Jiwa, established Excelso Coffee, affordable Tomoro Coffee, Maxx Coffee backed by Lippo Group, and even mobile coffee-cart startup Jago Coffee.
New players are also entering. In 2023, China’s Cotti Coffee opened its first store in Indonesia, bringing its low-price, aggressive expansion strategy. This move effectively places Cotti in direct competition with Luckin in Southeast Asia. For Fore Coffee, once nicknamed “Indonesia’s Luckin,” the challenge is now even more real, as it faces competition from brands deploying similar models.
Despite this, CEO Lomar remains optimistic: “The Indonesian coffee market is huge. Our goal is to become a major player in Indonesia and Southeast Asia. Even though Starbucks has been expanding globally for decades, Luckin still managed to take market share from them in China. That story gave us inspiration and confidence. If Luckin can challenge Starbucks, then Fore Coffee also has an opportunity to seize the market window and become a leading player here.”
The IPO has not only boosted Fore Coffee’s capital but also lifted confidence in the market. By combining affordable pricing, localized product innovation, and O2O first-mover advantage, Fore Coffee has carved out a niche.
As Lomar concluded: “A strong operational foundation is the key to delivering an excellent coffee experience. We are committed to product quality, innovation, and efficiency. Most importantly, we empower our team and baristas through training, development, and growth opportunities to ensure sustainable operations.”
