Developing Raden Coffee Shop Business Through Innovation: A Design Thinking Approach

The growth of coffee shop businesses continues to increase along with the rising consumption of coffee beverages. This growth has led to intense competition among coffee shops, making it necessary to develop specific strategies tailored to the characteristics of each coffee shop to remain competitive in meeting customer demands. Innovation plays a crucial role in determining business strategies, and the design thinking method is one alternative approach to fostering innovation. This study applies the design thinking method, which is characterized by a human-centered approach that seeks problem-solving through a deep understanding of customer needs. The study's findings identify the main challenge faced by Raden Coffee, which is low sales performance. Through observations, it was discovered that Raden Coffee's customer segmentation consists primarily of workers and students from tutoring institutions. Workers typically seek high-quality coffee that can be obtained efficiently, while the student segment consists primarily of children and teenagers. Based on these customer characteristics, a prototype strategy was developed, which includes opening a take-and-go booth and adjusting Raden Coffee’s menu to cater to the tastes of children and teenagers. Keywords: Design Thinking, Innovation, Coffee Shop