International Journal of Economy, Education and Entrepreneuship

p-ISSN: 2798-0138 | e-ISSN: 2798-012X

Vol. 2, No. 2, August 2022
https://doi.org/10.53067/ije3.v2i2

ANALYSIS OF BUSINESS SUCCESS OF CAFE IN TULUNGAGUNG: A

PHENOMENOLOGICAL STUDY OF CAFE TAJUG TULUNGAGUNG

Wahyu Kawitaning Kinasih1*, Cipto Wardoyo2, Madziatul Churiyah3

1,2,3Faculty of Economics and Bussines, State University of Malang, Indonesia
E-mail: wahyu.kawitaning.2004158@students.um.ac.id

Abstract
Business success is defined as increased sales over previous results. A company's primary goal is business success,
with all of its activities aimed at achieving success. This study employs qualitative research methods with a
phenomenological analysis approach. The researcher focuses on a person's phenomenon or life experience in
running a business. The phenomena revealed include why entrepreneurs start a business, how they measure the
success of their business, and how entrepreneurs keep their business running. The participants in this study are
the owners, employees, and customers of Cafe Tajug Tulungagung. The study results found that: 1) The business
owner wanted to open a Cafe Tajug business because he wanted to innovate more than his previous business.
Business owners want to create jobs and open businesses in the same field but with different concepts and themes.
2) How to measure business success, the owner of Cafe Tajug uses indicators including innovation, development,
financial, non-financial, customer satisfaction, and employee satisfaction. 3) In maintaining the business, the
owner of Cafe Tajug constantly innovates whenever there are new ideas, carries out business development,
collaborates with investors, pays attention to employee welfare, gets motivation and support from family, and
pays attention to customer satisfaction so that profit targets are always achieved.
Keywords: Business Success, Phenomenological, Cafe

INTRODUCTION
In 2020, Indonesia was hit by the Covid-19 pandemic, which spread rapidly and forced
people to stay at home. The World Health Organization (WHO) has declared the Covid-19
virus to be a pandemic that has spread to numerous countries worldwide. Many aspects of life
have been impacted by this pandemic, including the economy in this country. Many businesses
have suffered setbacks and even bankruptcy due to the pandemic. Furthermore, business
competition is increasing daily. Entrepreneurs must have their characteristics in their business
to win the competition. The culinary industry is one of the most in-demand and affected by the
pandemic.
According to Effendy (2017), business is a buying and selling activity looking for a
profit. According to Wasis (2008), business is a person's effort to do something to achieve
specific goals and can meet daily needs. The business currently in great demand is the culinary
business. The culinary business is one of the businesses currently developing a lot, even in
times of crisis (Cadiogan et al., 2021). This reason is that food is a basic need for a society that
must meet. However, due to this pandemic, many culinary businesses have experienced
setbacks. However, some news reports say that cafe and restaurant businesses that can survive
during this pandemic use innovative strategies in their marketing. In 2018, the culinary
business was increasingly in demand by the public. According to the Creative Economic
Agency (BEKRAF) data, culinary businesses reached 5.55 million units in Indonesia alone, or
67.66% dark, 8.20 million creative economy businesses. However, this data changed in 2020,
a Covid-19 pandemic, and 60% of culinary businesses were affected by the Covid-19
pandemic. However, on the other hand, some businesses can still survive and rise from
adversity due to the Covid-19 Pandemic. One of them is the culinary business, which goes out
of business, but some are still trying to maintain their business during a pandemic.
One of the culinary businesses that still survive, namely Cafe / Coffee Shop, is a place
to eat and drink that offers a relaxed atmosphere without any binding rules (Indriyana, 2006).
Before the Covid-19 pandemic, this business mushroomed in various regions in Indonesia.
Even know that the research results of TOFIN, a company providing business solutions in the

335
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form of goods and services in the HORECA industry (Hotels, Restaurants, and Cafes) in
Indonesia, showed the number of coffee shops in 2019 reached more than 3000 outlets.
However, during the Pandemic 3000, 60% of these cafes were affected and had to go out of
business. Meanwhile, daily income from this culinary business decreased by 37% (Burhan,
2020).
The number of coffee shops that went out of business needed supporting factors to
realize business success and maintain their business. (Ferguson, n.d.) defines business success
as a personal achievement, and owners measure this success through employee appraisals,
market appraisals, and business owner ratings. In contrast to the opinion of (Shivani et al.,
2006), it is said that entrepreneurs can define themselves as prosperous or successful in their
business when they feel that their efforts and the resources provided for their business enable
them to achieve the desired business goals. (Reijonen, 2008) argues that achieving goals is the
most crucial measure of success.
So from some of the opinions above, it can conclude that business success is an
entrepreneur's achievement in achieving a goal in business. Several factors are needed for
business success. Artz et al. (2010) say that innovating is a crucial success factor in business.
Darroch (2005) & Chittithaworn et al. (2011) say that developing new products that meet
customer needs and expectations is an important strategy to achieve business success because
it ensures business continuity. Innovation is a driver of organizational performance on success
because it positively affects finances (Paz Hernández Girón et al., 2007). According to Haber
& Reichel (2005) untuk mengukur keberhasilan usaha dapat menggunakan kriteria keuangan
dan non keuangan. Kriteria keuangan diantaranya, pendapatan, omset penjualan jumlah
karyawan (Paz Hernández Girón et al., 2007) financial and non-financial criteria can be used
to measure business success. Financial criteria include income, sales turnover, and the number
of employees (Fairlie & Robb, 2009; Masuo et al., 2001). And the economic environment
(Reijonen, 2008) and accounting information (Nyathi et al., n.d.). For non-financial, including
customer satisfaction (Haber & Reichel, 2005), methods used in business, freedom in running
a business, pride in carrying out work (Paige & Littrell, 2002) & (Reijonen, 2008), and network
cooperation (Cahyaningtyas, 2017).
(Antawati & Mas’ud, 2019) argues that an excellent human resource management
process can also determine business success. In addition, previous experts have conducted
research in Indiana on 411 companies and suggested that the gender of a leader can also be a
factor in business success. The study said that women could be better at being a leader because
women have micro-manage, namely the ability to pay attention to small things so that women
are considered in more detail. However, creating a balanced business still requires female and
male leaders so that the business can run in balance (Kalleberg & Leicht, 1991). It is also
inseparable from how an entrepreneur creates a comfortable store atmosphere for cafe visitors
in business. The store atmosphere creates an atmosphere in the cafe environment to provide
comfort to consumers while in the cafe (Purwadi, 2020). In addition to the store atmosphere,
entrepreneurs must also pay attention to customer service. Product innovation is needed to
reduce consumer saturation and adapt to product packaging. In addition to product innovation,
service innovation is also needed, such as using delivery services and selling products on the
Marketplace and Social Media. Support the implementation of PSBB and PPKM during this
pandemic. Another factor is customer experience. And entrepreneurs believe that customer
experience is the center of competitiveness, and marketing experts call it the fundamental basis
for marketing management (Becker & Jaakkola, 2020).
According to (Griffin, 2005), the customer (customer) definition provides a critical view for
understanding why companies should create and maintain customers rather than attract buyers.
Based on observations at the Cafe in Tulungagung, most cafes have a monotonous menu and
are almost the same from one cafe to another, making consumers choose the cafe. Consumers
 Wahyu Kawitaning Kinasih, Cipto Wardoyo, Madziatul Churiyah
Analysis of Business Success of Cafe in Tulungagung: a Phenomenological Study of Cafe Tajug Tulungagung
337

will be comfortable with only 1 or 2 cafes and will become customers of that cafe without
trying or even knowing if there are other similar cafes; other cafes do not have the opportunity
to expand their business due to the lack of customers.
With this obstacle, business owners are required to be able to do more innovative marketing.
Entrepreneurs need digital marketing help to promote their business simultaneously as their
place of business. According to (Chaffey & Ellis-Chadwick, 2016), Digital marketing is an
internet application related to digital technology related to traditional communication to
achieve marketing goals. Consumer knowledge of the cafe includes profiles, menus, cafe
addresses, and others. In addition, digital marketing can also be used as an intermediary
between consumers and business owners, where consumer criticism and suggestions can be
used as material for business improvement and development. Digital marketing itself cannot
separate from social media. Social media can be used as a marketing tool, as evidenced by
special marketing features in social media. These social media include Instagram, Facebook,
YouTube, and Google. On Instagram, entrepreneurs can convert personal accounts into
business accounts that can later use directly for marketing. At the same time, on Facebook,
there is a Marketplace feature that can use to upload products as part of promotions—later
expected to help the success of the cafe business itself.
Observations are done in the cafe in Tulungagung Regency, namely Tajug. Café Tajug was
chosen because this cafe entrepreneur can maintain his business during a pandemic and
maintain customer loyalty. Based on the results of initial observations and interviews with
customers from this cafe, they claim to remain loyal to this cafe due to several things, including
affordable prices, a supportive store atmosphere, and the service provided by the cafe is very
satisfying for customers.

LITERATURE REVIEW
Business
Business is one of the leading business activities in economic development.
Understanding general economics, a business is an organization that sells goods and services
to consumers for a profit. According to Louis Boone (2007), business or business consists of
all activities and businesses to seek profit by providing goods or what is needed in the economic
system. Based on this definition, it can state that business activities can carry out individually
or in organized groups to produce goods and services needed by the community or consumers.
This group of activities is called a business (de Fretes, 2020).

Business Success
Some experts define business success as a personal achievement, and owners measure
success through employee, market, and owner appraisals (Ferguson, n.d.). (Shivani et al.,
2006) defines entrepreneurs are said to be successful when they feel that their efforts and the
resources provided for the business enable them to achieve the desired goals. These goals
depend on entrepreneurs' personality, motivation, attitudes, and perceptions. They can result
from interactions with external factors such as socio-cultural and economic (Reijonen, 2008)
(Toledo-López et al., 2012), saying that goals are the most crucial measure of success.
However, other researchers say that success or success is more than just money, and pursuing
financial goals involves several aspects, such as intrinsic rewards for entrepreneurs (Ahmad
& Seet, n.d.). Beauer (2018) shares the same opinion, saying that many entrepreneurs think
money is not the primary motivation but a pleasant byproduct of having the freedom to be
responsible for their future. Some experts define business success indicators in several
dimensions, one of which is, according to Jumaidi's (2012) in his research identifying business
success in 4 indicators, namely: achievement of business goals, product accepted by the
338 International Journal of Economy, Education and Entrepreneuship,
Vol. 2, No. 2, August 2022, pp. 335-344
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market, profit in production, and entrepreneurial satisfaction. (Artz et al., 2010) said that
innovating is a crucial success factor. In other words, implementing the innovation process on
an ongoing basis is a must, an essential factor to ensure the company's success. One of the
steps to measure success is to conduct a performance appraisal. Performance appraisal is
essential because apart from being used as a measure of the success of an organization within
a particular time, it can also be used as input for further improvement or improvement of
organizational performance (Iskandar, 2019).

Cafe
Cafe or coffee shop or what is known as a coffee shop comes from Turkey. The coffee
shop was first established in Constantinople, Turkey, in 1475. In general, a cafe is a culinary
business that provides a variety of coffee menus with service and a relaxed or informal
atmosphere. According to the Dictionary of Tourism and Hospitality Terms (Adi Soenarno,
2003) Cafe is a restaurant with a limited menu. The cafe is another term for coffee that can
refer to the term coffee shop, meaning a place to eat and drink that provides a simple menu and
soft drinks. Usually, cafes provide a menu that is less than restaurants, but cafes have an
atmosphere of relaxation for consumers who feel tired or bored.

Framework

Innovation Non-financial

Development Business Customer

success satisfaction

Financial Employee
satisfaction

Figure 1. Research Framework

The analysis of business success in this study is seen from several indicators, including
innovation (Artz et al., 2010), product development (Darroch, 2005) & (Chittithaworn et al.,
2011), customer and employee satisfaction (Haber & Reichel, 2005) & Financial and Non-
Financial(Haber & Reichel, 2005).

METHODS
This research uses qualitative research with a phenomenological analysis approach. The
location chosen as the research site is Cafe Tajug in Tulungagung. Sources of data in this study
obtaining from key informants, namely the owner of Cafe Tajug, and supporting informants,
namely five employees and 12 customers with customer criteria of teenagers (13-16 years),
young (17-25 years), and adults (26-39 years). Methods of data collection using observation
techniques, interviews, and documentation. This research was conducted in the period
December 2021 - to February 2022. In phenomenological research, there are structured and
specific analytical methods developed by Moustakas (1994) (Creswell & Creswell, 2013),
 Wahyu Kawitaning Kinasih, Cipto Wardoyo, Madziatul Churiyah
Analysis of Business Success of Cafe in Tulungagung: a Phenomenological Study of Cafe Tajug Tulungagung
339

namely: 1) Describing personal experiences with phenomena that are being studied; 2) Making
a list of introductory statements; 3) Take the crucial statements and then group them into
meaning units or themes; 4) Write a textural description (what is experienced) of the
participant's experience; 5) Describing a structural description (how the experience happened).
Checking the validity of the data in this study used triangulation and peer checking.

RESULTS AND DISCUSSION

Cafe Tajug was the study site, which is located at Jl. Major Sujadi No. 12f, Japan,
Tulungagung Regency. This cafe building is located at the end of a small street, and the
building faces south. This cafe has a unique design, unlike other cafes with a modern feel, but
this cafe has a more traditional design like an old house. The owner of this cafe is a husband
and wife named Mr. Nova and Mrs. Andri, with five employees. The cafe's location is quite
remote and has a slogan: Stay away from the hustle and bustle of the city. The cafe is supported
by a location far from the city's noise. The location of this cafe is in the city center. This cafe
is open from 09.00 am to 10.00 pm.
The research results through interviews, observations, and documentation found that
the owner of Cafe Tajug started a business in the F&B field because the owner wanted to try a
more modern F&B business concept. However, the target market was the lower middle class.
In addition, the owner also wants to develop the previous business that already exists, namely
"Angkringanku," which has been running for more than five years and, of course, opens up
new job opportunities. They are very confident in opening this business with confidence,
determination, and intention while for the risks they may face. This result was revealed in an
interview with the owner of Cafe Tajug and confirmed by Satrio, an employee of Cafe Tajug.
The results of this study agree with (Perry et al., 2018) that business owners open this
business because they want to innovate more than in their previous businesses. Then disagree
with the statement from (Ferguson, n.d.) that an entrepreneur starts a business to achieve
autonomy and personal happiness.
Furthermore, based on the results of the research, it is known that the way Cafe Tajug
owners measure business success using the following indicators: 1) Innovation: it is known
that the innovations carried out to follow the ideas owned by the cafe owners, the innovations
made include interior design, adding cafe facilities, and food and drink menu. Owners also
innovate through social media such as Instagram and Facebook. 2) Development: it is known
that the owner has other businesses besides this cafe. Tajug is his second business. In the next
few years, the owner desires to expand his business in the form of other concepts such as a
food restaurant and a tour and travel service business. 3) Finance: it is known that the financial
details are still in manual form or written in a book, not yet in computerized form. In the book,
it can be seen that the net profit obtained by the cafe within a certain time if the cafe is quiet
per day gets Rp. 250,000-Rp. 300,000, but if it is crowded with customers, it can earn
approximately Rp per day. 2,000,000. Meanwhile, the gross income per day can reach Rp.
3,500,000. 4) Non-financial: family plays an important role in motivating owners for business
development in terms of opening a new business. In addition to motivation, the family is also
willing to be an investor in this business. 5) Customer satisfaction: employees and cafe owners
provide excellent service with full hospitality to customers. In addition, the menu provided can
be said to be delicious and follows standard prices. The atmosphere of this cafe is very
comfortable, like feeling at home, away from the city's noise and following the cafe's motto,
which is away from the hustle and bustle of the city, this is following the concept. It is complete
for customer facilities, including Wi-fi, prayer rooms, bathrooms, car and motorcycle parking,
and a convenient and strategic location. 6) Employee satisfaction: employees are very
comfortable with the work environment and feel comfortable with the attitude given by the
340 International Journal of Economy, Education and Entrepreneuship,
Vol. 2, No. 2, August 2022, pp. 335-344
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cafe owner towards his employees. In addition, employees are also given freedom in eating,
and they can try various menus at this cafe.
The results of this study are in line with (Artz et al., 2010) that innovation is a crucial
factor in the success of a business, meaning that implementing innovation on an ongoing basis
is a must to ensure business success. Another opinion was expressed by (Darroch, 2005) and
(Chittithaworn et al., 2011) that product development that can meet customer needs is an
important strategy to achieve business success. (Haber & Reichel, 2005) to measure business
success, it is also necessary to pay attention to financial and non-financial indicators. Customer
satisfaction and employee satisfaction affect the business's success; this is important to note
(Haber & Reichel, 2005). (Reijonen, 2008) reveals that achieving business goals is the most
critical measure of business success, so the actual definition of business success is when the
company can achieve a business goal.
Finally, related to the research results on how the owner of Cafe Tajug maintains his
business, it can see that previously the owner of Cafe Tajug had worked in a company in the
field of Finance for ten years. Moreover, he finally decided to resign, started his first business,
and arrived at the second business, namely Cafe Tajug. At the beginning of starting this
business, the owner was afraid of the many competitors. However, with the support and
motivation from the closest people, the owner could run this business and manage to develop
it even though there were many business competitors. The initial capital issued by the owner
is approximate Rp. 100,000,000. The owner of Cafe Tajug is also optimistic and always tries
to innovate to respond to his business competitors. In this way, the business owner feels that
this is part of healthy competition. Moreover, the owner of Cafe Tajug can face risks in this
business.
The results of this study agree with (Porfírio et al., 2020) that the family plays an
essential role in a business because an entrepreneur gets motivation and encouragement in
developing his business from the family. (Sanchez, n.d.) experience can help an entrepreneur
in business development, maintain a business during a crisis, and consider the unexpected.
Moreover, (Gaynor, B.Pdf, n.d.) that one strategy in maintaining a business is implementing
specific entrepreneurial strategies such as resource acquisition.

CONCLUSION
The reasons for the owner to start this business include the first to develop an existing
business or business. This study can conclude that business success is when an entrepreneur
can prosper his employees, meet the minimum needs of employees, and have good employee
management. Good management will form disciplined and diligent employees so that the work
done in serving customers can be done well, and customers will feel satisfied. There are several
ways that the owner can use to maintain the business, including the family's motivation, the
persistence of the owner, and the tendency to take risks. From the results of the exposure to the
interview data above, it can seem that the owner gets maximum motivation from his family in
developing his business, not only motivational support but also being willing to become an
investor in this cafe with a pre-agreed distribution.
Suggestions that can be given by other researchers who will conduct research with
similar themes are: 1) For business owners, this research can be used as material in business
development by looking at other theories that have been described in the previous chapter. 2)
Other researchers can find and add other indicators that affect the success of a business. In
addition, according to other entrepreneurs' opinions, other researchers about the definition of
business success can conduct research in different business fields, which means it does not
have to be in the culinary field.
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Analysis of Business Success of Cafe in Tulungagung: a Phenomenological Study of Cafe Tajug Tulungagung
341

This research has been attempted and carried out following scientific procedures. However,
it still has limitations, namely, the indicators that affect business success in this study only
consist of 6 indicators, including innovation, development, financial, non-financial, employee
satisfaction, and customer satisfaction. At the same time, there are still many other indicators
that affect business success. This research is qualitative, so the data taken are interviews with
business owners, employees, and several customers. The research is only conducted on one
research object, namely Cafe Tajug.

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