Uncovering the Sustainability Practices of MSMEs Coffee Shop in Bandung with PESTEL Analysis

Coffe shop MSMEs play an important role in the creative economy and urban culture in Bandung, but the adoption of sustainability practices in this sector still faces various obstacles. This research responds to the lack of empirical studies that map the sustainability practices of MSMEs with a multidimensional approach in the context of developing cities. This study aims to find out how MSME coffee shops in Bandung are with the application of PESTLE Analysis. Using a qualitative approach, data was collected through in-depth interviews, observations, and document analysis at four local coffee shops over a two-month period. Results show that sustainability practices have been implemented through operational efficiency, the use of eco-friendly raw materials, community engagement, and customer education. However, resource limitations, green technology costs, and lack of certification support are major obstacles. Digitalization and innovation strategies have proven to be key elements in maintaining business sustainability, even though the adoption of renewable energy is still low. All shops have met the basic legality aspects, but require further facilitation from the government. This study offers a new empirical contribution in understanding the sustainability dynamics of MSMEs in urban areas, as well as providing strategic recommendations for policymakers and business actors.