1 CHAPTER I INTRODUCTION 1.1 Background The creative industry is important to economic growth and cultural enrichment that provides economic value as well as a means of cultural expression and innovation (Purnama, 2023). It includes various sectors that rely on individual creativity, skills and talents to produce economic and cultural value. This industry plays an essential role in encouraging innovation, promoting cultural diversity, and encouraging economic development. One of the areas that the creative industry focuses on is culinary. The term of "culinary" generally refers to anything related to cooking or the art of preparing and serving food (Stierand, 2008). More than just the everyday activity of cooking, culinary encompasses a deep understanding of food ingredients, cooking techniques, dish presentation, as well as the creative and artistic aspects of creating a memorable culinary experience. In a broader context, culinary also involves knowledge of food culture, culinary history, nutrition, kitchen management, and innovation in the food industry. A professional in the culinary field is not only proficient in cooking, but also understands the aspects of business, creativity, and service that are important parts of culinary. In 2023, Gross Domestic Product (GDP) from the culinary industry such as restaurants, cafes, and food stalls is around IDR 405 trillion, highlighting the role of culinary services in supporting the wider economic landscape. The growth in the culinary sector, especially in restaurants, cafes, and food stalls, is in line with increasing consumer demand for dining experiences, diverse cuisines, and food services throughout Indonesia. The graph in Figure 1.1 shows positive impact regarding GDP from the culinary industry such as restaurants, cafe, and food stalls which can be seen in the following graph. 2 Figure 1.1 Gross Domestic Product (GDP) at Current Market Prices from The Culinary Industry in Indonesia from 2014 to 2023 Source: Statista (2024) Cafes offer a variety of food and beverage choices, frequently with a unique accentuation on coffee and cake, but progressively they serve a wider menu that incorporates light meals, snacks and artisanal products. Cafes, mainly those that emphasize creative food and beverage pairings, innovative flavours, or local resources, play an essential part in extending culinary experiences. The cafe lifestyle has advanced into a cultural trend, particularly among urban communities, where cafes are not fair places to appreciate coffee but are too social center points and creative spaces. This lifestyle reflects cutting edge shopper inclinations for comfort, consolation, and social encounters, and has impacted the way individuals work, socialize, and spend recreation time. Nowadays, many business people choose to open cafes. In 2022, Indonesia has around 8,869 cafes which shows consistent growth from year to year. The graph in Figure 1.2 shows a positive impact regarding the number of cafes in Indonesia which can be seen in the following graph. 3 Figure 1.2 Number of Cafes in Indonesia from 2019 to 2022 Source: Statista (2023) Due to the competition from the large number of cafes, this requires a Unique Selling Point (USP) for building a cafe. These are some common USPs that can help a cafe stand out include specialty and unique coffee, cafe ambience, various menu options, local ingredients, and unique food and beverages. There is a relationship between USP and customer satisfaction. This relationship is very important for business. This is because a good USP can help a business, especially a cafe business, to differentiate itself from existing competitors which can lead to increased customer satisfaction. A USP highlights what makes a product or service unique, so customers have a clear reason to choose it over others (SCHMIDT, 2020). When customers perceive a product as unique in meeting their specific needs or preferences, they tend to feel satisfied to the product. A compelling USP not as it were draws in customers but moreover supports satisfaction by making a business memorable, assembling particular customer expectations, and giving a consistent experience that adjusts with customers' values and needs. Focusing on customer satisfaction not only makes customers happy, but also makes for a smart business strategy. By understanding what customers want, cafes can increase loyalty, reputation, and service improvements. 4 USP effectively delivered in products and services plays a vital role in determining customer satisfaction. The cafe that has a USP can influence customer satisfaction by providing affordable prices and friendly service (OlajideTalabi, 2012). When a cafe highlights its USP such as high-quality ingredients, personalized service, or unique atmosphere, it creates a unique experience that makes it different from competitors and meets specific customer expectations. For example, Roya Cafe Mantingan uses unique brewing techniques to appeal to coffee lovers (Tussifah, 2021). In its manufacture, coffee with the cold brew brewing method takes quite a long time. This is because cold brew is a ready stock dish and not based on orders. Therefore, this type of coffee is more than just ice black coffee.