Brewing Profits: A Study of Cost Management Practices in Coffee Shops in Indonesia

Abstract

This research is narrative qualitative research with a case study approach entitled " Brewing Profits: A Study of Cost Management Practices in Coffee Shops in Indonesia." The purpose of this study is to analyze the strategies used by coffee shops to maintain their sales and control their costs. The study was conducted in two different types of coffeeshop which are local coffee shops and national franchise coffee shops. Both coffee shops are located in Purwokerto, Central Java, Indonesia. Data were collected through in-depth interviews and direct observation. The results showed that cost control, business location, and selling price determination are the
main factors affecting coffee shop income. Cost control involves monitoring operationa expenses and efficient use of raw materials. A strategic business location contributes to an increase in the number of customers and sales. Determining the right selling price allows coffee shops to remain competitive while optimizing profit. The conclusion of this study shows that coffee shops in Purwokerto tend to implement effective strategies to maintain their sales. Cost control is done by efficient inventory monitoring and management. Factors such as location, reputation, selling price, and promotion play an important role in influencing the income of coffee shops in Purwokerto. This study implies that coffee shops need to pay attention to the determinants of income to achieve business success. By understanding the factors that affect income, coffee shops can design effective marketing strategies, encourage product innovation and differentiation, and understand the importance of good financial management, including recording sales transactions.