JAKARTA, Thekabarnews.com—Fore Coffee chose a new approach instead of following the traditional franchising route used by many of Indonesia’s top coffee shops.

Yet, industry observers initially dismissed Rental Revenue Sharing (RRS)—an alternative partnership structure that the company and its co-founder and CEO, Vico Lomar, pioneered. However, it has since become one of the company’s hallmark business strategies.

The highly competitive Indonesian coffee sector has long relied on franchising as its expansion strategy. The average franchisee pays franchise fees and royalties and manages the firm under an established brand.

But Fore Coffee went a different path. In the rental revenue sharing model, the investors provide the physical space and accompanying amenities. Meanwhile, Fore Coffee is responsible for operational operations, product quality, technology systems, staffing, and brand management.

The company does not take royalties but takes a portion of the revenue that its partners receive from net sales.

There was a lot of industry criticism around Fore Coffee as to whether the model could scale.

The framework was markedly different from the franchising agreements that helped many food and beverage enterprises develop in Indonesia.

During that time, few firms in the Indonesian coffee industry entered into comparable deals. But despite the skepticism, Fore Coffee adhered to the notion and developed its network in several places.

Proponents of this concept maintained that the corporation could keep direct operational control and so maintain consistency in the quality of the service supplied. Moreover, it could improve customer experience and maintain the brand standards at the sites.

It also eliminated some of the operational issues frequently associated with franchise management. The company’s recent financial performance shows that the plan has produced excellent results.

Corporate data indicated that Fore Coffee’s revenue hit over Rp1.04 trillion in the first nine months of 2025, up 43 percent year-on-year (YoY).

The development is a sign of the ongoing demand for specialty coffee products. It also reflects the company’s ability to grow its operations and still have operational control.

Indonesia’s coffee market continues to be one of the most dynamic consumer marketplaces in Southeast Asia, with the effect of urbanization, changing consumer preferences, digital ordering platforms, and a growing appetite for premium coffee experiences.

As competition becomes increasingly ferocious, firms are looking for new ways to do business and develop themselves swiftly. Yet they aim to maintain the same quality level.

Fore Coffee’s example is a sign that other collaboration formats can be realistic development prospects outside of traditional franchising.

The organization separates operations management from property ownership, establishing a structure that balances the interests of investors and operators. At the same time, it still permits more control of brand execution.

A company needs to be profitable, maintain its service standards, and adapt to the changing tastes of its clients to succeed over the long term.

The success of Fore Coffee has caught the attention of the whole Indonesian food and beverage industry. As a result, entrepreneurs are looking for new ways to grow.

The experience of the company reminds us that business model innovation can be as important as product innovation. This is especially true in rapidly growing consumer industries where consistency of operations is often the key to long-term success.

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