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Tag: Zus Coffee

  • Café Amazon Rolls Out Canned Sparkling Coffee Across 7-Eleven Thailand

    Café Amazon Rolls Out Canned Sparkling Coffee Across 7-Eleven Thailand

    Café Amazon has launched Amazon Fizzpresso across 7-Eleven stores in Thailand. The product brings zero-sugar sparkling ready-to-drink coffee to convenience shelves nationwide.

    Two fruit flavours lead the debut: Yuzu and Peach. Both combine carbonated water with instant coffee notes to mimic a coffee soda. Earlier sparkling coffees in Thailand stayed in specialty grocers at premium prices. 7-Eleven’s retail footprint will test whether the drink works as an everyday convenience purchase.

    Formulation and convenience distribution

    The Peach variant contains water, 0.53 per cent concentrated peach juice, and 0.38 per cent coffee powder. Sucralose and acesulfame potassium replace sugar to keep the drink low-calorie. Acidity regulators and standard preservatives round out the shelf-stable formulation.

    Selling through 7-Eleven gives the chain immediate access to thousands of high-traffic locations across Bangkok and provincial hubs. In grab-and-go coolers, the product competes directly against carbonated soft drinks, energy drinks, and traditional canned milk coffees.

    Regional push into fizzy brews

    Sparkling coffee has seen mixed consumer reception across Southeast Asia, though regional chains continue to back the format. Malaysian operator ZUS Coffee introduced its canned Coffizz line in Original and Zesty Lime variants in 2024. Those cans remain on retail shelves despite polarized early feedback.

    Independent roasters and smaller regional players have treated sparkling coffee as a novelty drink. Café Amazon brings the manufacturing scale of parent group PTT Oil and Retail Business. The real test is whether repeat purchases hold up in convenience chillers once initial curiosity fades.

  • ZUS Coffee Brews Buzz with Potential $245M IPO, Bolstering Malaysias Coffee Industry

    ZUS Coffee Brews Buzz with Potential $245M IPO, Bolstering Malaysias Coffee Industry

    ZUS Coffee, Malaysia’s largest coffee chain, is reportedly considering an initial public offering (IPO) for its Malaysia business that could generate a minimum of RM1 billion (US$245 million). Zuspresso, the brand’s owner, is teaming up with financial advisors to potentially launch the IPO as early as mid-2027. The valuation of the project could reach RM4 billion. However, the magnitude and timing of this venture are still under negotiation.

    Rapid Growth to Market Dominance

    ZUS Coffee, which began as a small kiosk in 2019, rapidly grew into Malaysia’s largest chain by store count by 2024, overtaking Starbucks. The company targeted the mid-priced segment of the coffee market, which was relatively underserved at the time of its inception. A standout feature of ZUS Coffee’s business model is its technological approach, featuring an app that allows customers to pre-order and collect their purchases in-store. This app also provides valuable insights into customers’ preferences, facilitating data-driven product development.

    Expansion Plans

    Currently, ZUS Coffee operates over 1,000 stores globally, the majority of which are in Malaysia. The company has also expanded into other markets such as Singapore, Brunei, the Philippines, Thailand, and Indonesia. Earlier this year, ZUS Coffee announced its ambitious plan to expand its network to 1,300 outlets by the end of 2026. This expansion includes adding 200 more stores in Malaysia.

    Questions & Answers

    What is the projected value of ZUS Coffee’s IPO?
    The IPO could potentially value ZUS Coffee’s business at RM4 billion.

    What sets ZUS Coffee’s business model apart?
    ZUS Coffee utilizes a tech-driven business model, featuring an app that allows customers to place orders in advance and collect them at stores. The app also provides the company with valuable customer preference data, supporting data-led product development.

    What are ZUS Coffee’s expansion plans?
    ZUS Coffee intends to grow its network to 1,300 outlets by the end of 2026, with an additional 200 stores planned in Malaysia.

  • Rising Stars on the Global Coffee Scene: How Southeast Asia’s Homegrown Chains are Brewing Success Overseas

    Rising Stars on the Global Coffee Scene: How Southeast Asia’s Homegrown Chains are Brewing Success Overseas

    Southeast Asian coffee chains, including Malaysia’s Zus Coffee and Indonesia’s Kopi Kenangan, are extending their reach beyond their national borders, looking to make their mark on the region’s burgeoning café culture.

    Unleashing the Flavor of Southeast Asia

    Kopi Kenangan outlets in Singapore offer customers a unique coffee experience. In addition to the usual preferences for milk and sugar, customers can select their preferred coffee beans, sourced from various Indonesian regions such as Aceh, Bali, and Flores. The coffee chain also boasts traditional drinks with an Indonesian touch, like lattes sweetened with palm sugar, which makes them stand apart from the competition.

    Billy Ooi, a management professional based in Singapore, expressed his satisfaction with the brand, commenting that it is budget-friendly, offers good discounts, and the taste is comparable to other cafés.

    Rapid Growth

    In its home country, Indonesia, Kopi Kenangan, which was launched in 2017, has swiftly become the nation’s largest café chain. The brand had over 1,100 outlets across the country by the end of last year. It was also among the first to go global, opening approximately 187 stores in India, Australia, Singapore, Malaysia, and the Philippines.

    Similar progress is evident in other local brands like Tomoro and Fore, which have also made their presence felt in Singapore, China, and the Philippines.

    Malaysia’s Zus Coffee is another success story. It began as a small kiosk in 2019 and has since transformed into the country’s largest coffee chain. Operating over 1,000 outlets across Malaysia, Singapore, Brunei, the Philippines, and Thailand, the majority of its branches are located in its home market.

    Beej Marcado, a young entrepreneur from the Philippines, considers Zus as his top choice, impressed by their simple drinks and sustainable practices like the use of edible straws.

    Surviving in a Competitive Market

    As these Southeast Asian coffee chains venture into international markets, they are confronted with fierce competition from global juggernauts such as Starbucks from the U.S. and China’s Luckin Coffee, as well as robust local players in each country.

    Many have had to innovate to stay competitive, adding localized offerings to their menus. For example, Zus Coffee introduced an ube (purple yam) coffee in the Philippines and a Tom Yum Americano in Thailand to cater to local tastes.

    Adapting to local preferences was also crucial for Sarnies, a café chain from Singapore with several outlets in Thailand. Its founders, Eric Chan and Benjamin Lee, adjusted their menu to appeal to a more diverse customer base when they expanded into Thailand.

    The Future of the Coffee Chain Industry

    The modern coffee and tea market in Southeast Asia was estimated to be worth US$9.9 billion in 2025, a sharp increase from $8.3 billion in 2023. The expansion was fueled by swift store growth, the advent of digital ordering, and broader consumer adoption.

    However, the industry is entering a new phase. The focus is shifting towards the efficiency of operating systems, from supply chains and in-store processes to digital infrastructure. The ability to scale operations efficiently and uphold unit economics is becoming a decisive factor in competition.

    Questions & Answers

    What is unique about the coffee experience at Kopi Kenangan outlets in Singapore?
    At Kopi Kenangan, customers can select their preferred coffee beans, sourced from various Indonesian regions. They also offer traditional Indonesian drinks, like lattes sweetened with palm sugar.

    How are Southeast Asian coffee chains adapting to survive in international markets?
    Many chains are adding localized offerings to their menus to cater to local tastes. For example, Zus Coffee introduced an ube (purple yam) coffee in the Philippines and a Tom Yum Americano in Thailand.

    What is the projected value of the modern coffee and tea market in Southeast Asia in 2025?
    The modern coffee and tea market in Southeast Asia is expected to be worth US$9.9 billion in 2025.

  • ZUS Coffee Backlash: Customer’s Viral Video of Coffeegate Sparks Nationwide Outrage in Malaysia

    ZUS Coffee Backlash: Customer’s Viral Video of Coffeegate Sparks Nationwide Outrage in Malaysia

    A recent incident involving a customer at a ZUS Coffee outlet, the largest coffee chain in Malaysia, has sparked outrage and controversy on social media. The customer’s aggressive behaviour, captured on video, has been widely shared, igniting conversations about customer service and workplace respect.

    The Viral Outburst

    The video, allegedly recorded at a ZUS Coffee outlet in Malaysia, reveals a heated exchange between a female customer and a female barista. In the footage, the barista can be heard instructing the customer, who is filming the incident, to leave the store. The customer, reacting aggressively to the request, retorts in Mandarin, “Why should I leave? I’ve already paid for my coffee!”

    In a display of anger, the customer knocks over a cup of coffee, splashing the contents across the counter and onto the barista’s hand. She then throws the cup at the employee. The barista, in response, tosses the empty cup back over the counter, barely missing the customer. The customer continues her tirade, hurling the cup directly at the employee, hitting her head, and unleashing a flurry of obscenities.

    While the video does not disclose what led to the altercation, sources have indicated that it may have been triggered by the customer’s dissatisfaction with the speed of the service.

    The Social Media Reaction

    News of the incident spread rapidly across social media platforms, eliciting support for the barista and prompting calls for ZUS Coffee to back their employee. Many social media users underlined the importance of a comprehensive investigation by the company and emphasised the need to protect local workers from abusive behaviour by foreign customers.

    One social media user, reflecting on the incident, commented, “I sincerely hope ZUS doesn’t let her go. Working in the retail sector is challenging enough without having to deal with difficult customers.”

    This incident has also sparked broader discussions about respect and treatment of staff in the retail and service industries. Some individuals have even threatened to boycott ZUS Coffee if the company remains silent or takes punitive measures against the barista, thereby applying pressure on the coffee chain to respond promptly.

    ZUS Coffee’s Response

    Responding to the incident, ZUS Coffee released a statement later the same day supporting the barista, referred to affectionately as a ‘Zurista’ within the company. The statement read, “Since the incident, we have initiated the necessary procedures to conduct a thorough investigation. We stand by our Zurista during this difficult time.”

    The statement continued, “Working in retail can be challenging, and the situation should never have escalated to the point it did. Ultimately, we’re all just human trying to do our best.”

    ZUS Coffee also urged the public to respect the employee’s privacy and to avoid disseminating false information online or offline while the investigation is ongoing. The coffee chain reiterated its intolerance of any disrespectful behaviour towards its communities and its commitment to creating a safe, respectful, and supportive environment for everyone.

    Questions & Answers

    What was the incident at a ZUS Coffee outlet in Malaysia?
    A female customer at a ZUS Coffee outlet in Malaysia was filmed throwing coffee and shouting obscenities at an employee, triggering a heated debate on social media about customer service and workplace respect.

    How has the public reacted to the incident?
    The incident has sparked strong reactions on social media, with many expressing support for the employee and calling for a thorough investigation by ZUS Coffee. Some individuals have threatened to boycott the coffee chain if it doesn’t take appropriate action.

    How has ZUS Coffee responded to the incident?
    ZUS Coffee has issued a statement supporting the employee, assuring that a comprehensive investigation is underway and urging public respect for the employee’s privacy. The coffee chain has also reiterated its commitment to a safe, respectful, and supportive working environment.

  • Zus Coffee’s Ambitious Expansion: 200 New Outlets Across Southeast Asia

    Zus Coffee’s Ambitious Expansion: 200 New Outlets Across Southeast Asia

    Zus Coffee, the well-established Malaysian chain, has announced its expansion into Thailand with the opening of two new outposts in Bangkok. This move marks a key stage in the brand’s previously stated intentions for regional growth.

    Expansion into Bangkok

    The two stores, located at Varnish Place Ari, a renowned lifestyle hub, and Baan Kampu Asoke on Sukhumvit 21 Road, were established in partnership with RSC, a prominent leasing firm.

    These Bangkok locations are just a fraction of Zus Coffee’s ambitious strategy to establish 200 new outlets throughout Southeast Asia within the year. As part of this growth plan, the company is aiming to unveil at least 107 new stores in its home country of Malaysia, approximately 80 in the Philippines, and six in Singapore. Additional expansion in Thailand, Brunei, and Indonesia is also on the horizon.

    About Zus Coffee

    Zus Coffee was founded in 2019 with a specific focus on offering budget-friendly specialty coffee. Since its inception, the company has experienced remarkable growth, mushrooming from 290 outlets in 2023 to over 700 locations in Malaysia.

    The company embarked on its international expansion in 2023, with the Philippines being the first overseas market where it launched operations.

    Questions & Answers

    When was Zus Coffee founded?
    Zus Coffee was established in 2019, specializing in affordable specialty coffee.

    What is Zus Coffee’s expansion plan for the year?
    Zus Coffee aims to open 200 new outlets across Southeast Asia this year. The plan includes launching at least 107 new stores in Malaysia, around 80 in the Philippines, and six in Singapore, with further expansion planned in Thailand, Brunei, and Indonesia.

    Where has Zus Coffee recently expanded to?
    Zus Coffee has recently expanded into Thailand, opening two new outlets in Bangkok.

  • Malaysia’s largest coffee chain Zus Coffee targets 200 Southeast Asian outlets this year

    Malaysia’s largest coffee chain Zus Coffee targets 200 Southeast Asian outlets this year

    Malaysia’s largest coffee chain, Zus Coffee, plans to launch 200 new outlets in Southeast Asia this year, according to CEO Venon Tian in an interview with Bloomberg.

    Zuspresso, the operator of the Zus brand, is targeting at least 107 new stores in Malaysia, 80 in the Philippines, and six in Singapore. It also eyes to set up the first stores in Thailand and Indonesia this year.

    Last year, Zus surpassed Starbucks as Malaysia’s top coffee chain after five years of operation, with 743 outlets compared to Starbucks’ 320.

    It also manages 120 stores in the Philippines.

    Zus reported a threefold increase in net income to RM37 million (US$8.4 million) in 2024, reflecting its rapid growth.

    Tian attributed the company’s success to its market-specific flavors, such as palm sugar-flavored drinks in Malaysia and purple yam-flavored coffee in the Philippines.

    Zus, which started out as a kiosk focusing on coffee delivery in 2019, now sees about 70% sales coming from online channels, including deliveries and pickups.

    Its tech-driven approach and cost-efficient store construction have enabled it to offer coffee over 20%cheaper than Starbucks, boosting its widespread appeal in Malaysia.

    Zus drinks are price in the mid-range in Malaysia, between the RM5 price tag of convenience stores and RM11 of premium stores.

    “It’s about how we make quality coffee accessible to most people,” Tian said.

  • How ZUS Coffee become Malaysia’s largest coffee chain in 4 years

    How ZUS Coffee become Malaysia’s largest coffee chain in 4 years

    ZUS Coffee, a Malaysian firm that began as a small kiosk in Kuala Lumpur, took just over four years to become the biggest coffee chain operator in the country.

    The firm quickly expanded to surpass U.S. giant Starbucks in a market with over 3,300 branded coffee outlets, a figure expected to grow 4-5% this year, according to global coffee industry research platform World Coffee Portal.

    It launched at the end of 2019 with a 200-square-foot (18-square-meter) kiosk in the Kuala Lumpur City Center area.

    The brand positioned itself in the mid-priced segment, which was largely untapped at the time, aiming to make specialty coffee a daily necessity rather than a luxury.

    One of its main draws is its frequently updated menu, which features unique drinks like the Ice Shaken Osmanthus Orange Espresso, Sakura Rose Frappe, and Cheese Crème Latté.

    But this was not the only factor setting it apart from other options in Malaysia’s coffee market as it is also known for its tech-driven approach.

    The company digitized its operations and had an app at launch that facilitates online ordering, pick-up and delivery, with the aim to shake up the market by focusing on digital orders and fast service.

    The app also collects data on customers’ tastes and preferences, which is used to develop new products or improve existing items.

    The company had a rough start as cashless payments and online coffee ordering were slow to catch on in Malaysia.

    However, the Covid-19 pandemic hit a few months after the startup launched, transforming the local coffee landscape. Delivery services and contactless payments quickly became standard, making ZUS’ focus on technology highly successful.

    “We became profitable just 10 months after we launched. Timing was crucial – it is not just the product or the team, but being in the right place at the right time,” Venon Tian, the firm’s COO and co-founder, told Nikkei Asia.

    Tian’s ambitious plans for his business would see it challenge international brands in the local market.

    “Hopefully we will be able to surpass the bigger boys in town soon and be something for Malaysians to be proud of as well,” Tian told The CEO Magazine in 2022, when the chain had just over 150 stores.

    As its popularity and presence grew over the years, the firm became the largest coffee chain operator in Malaysia. It has 566 stores as of September 2024, surpassing Starbucks, which is in second place with 411 outlets.

    Its revenues jumped from 15.7 million ringgit (US$3.5 million) in 2021 to over 200 million ringgit in the fiscal year ending June 30, 2023, while its net profit surged from 134,000 ringgit to 10.2 million ringgit during the same period.

    The chain is now looking to expand into the international market. It has already opened more than 40 stores in the Philippines since entering the market last year after Filipino billionaire Frank Lao acquired a 30% stake in the company.

    It opened its first store in Singapore in October and launched in Brunei late last month with an outlet at the Setia Point shopping center in the capital city of Bandar Seri Begawan.

    Tian said at a conference hosted by Tech in Asia earlier this year that ZUS would be expanding to Pakistan by the first half of 2025. He expects its revenues and net profit to reach 600 million ringgit and 30 million ringgit, respectively, this year.

    He told Nikkei Asia that the firm aims to become a “national champion,” comparing it to Malaysian airline AirAsia. “Who knows, we could be the AirAsia of coffee – a Southeast Asian brand recognized globally.”

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  • Malaysia’s Zus Coffee secures $57m funding, to expand into Singapore, Brunei

    Malaysia’s Zus Coffee secures $57m funding, to expand into Singapore, Brunei

    Malaysian coffee chain Zus Coffee has secured a US$57.27 million (RM 250) investment to support its expansion in Singapore and Brunei this year. The funding was secured from a consortium comprising private equity firm KV Asia Capital, Malaysian pension fund KWAP, and Indonesia’s Kapal Api Group.

    Founded in 2019, Zus Coffee has expanded to become one of Malaysia’s largest coffee chains, with an estimated  550 stores.

    It has also extended its footprint to the Philippines, where it operates 50 stores. This is following a strategic partnership with the Filipino hospitality group Choi Garden Restaurant Company, which acquired a 35 percent stake in the company last year.

    The Edge reports that the investment from KV Asia Capital will be raised in two phases: an initial US$10.7 million (RM 50 million), followed by an additional $42.8 million (RM 200 million) at a later date.

    KV Asia Capital has already invested in several other companies in Southeast Asia. These include the Taguig-based Wildflour Hospitality Group, the Vietnamese logistics firm Bee Logistics, the Indonesian beauty brand Victoria Care, the health food supplement company DXN, and the Malaysian supermarket chain TF Value Mart.

    Ernst & Young Malaysia acted as an adviser for the transaction.

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  • Malaysia’s Zus Coffee to make international debut in the Philippines

    Malaysia’s Zus Coffee to make international debut in the Philippines

    Malaysia’s ZUS Coffee is set to make its international debut this month with an outlet in Quezon City, the Philippines. The technology-focused coffee chain opened its first store in Binjai in late 2019 and now operates approximately 290 stores across Malaysia.

    In a LinkedIn post, Chief Operating Officer Venon Tian said ZUS Coffee plans to open six outlets in the Philippines by the end of 2023.

    ZUS Coffee’s international debut in the Philippines has been on the cards since March 2023, when Filipino restaurant group Choi Garden Restaurant Company acquired a 35% stake in the coffee chain.

    Speaking at the signing of the agreement, Choi Garden’s Chief Operating Officer Janica Lao said: “ZUS Coffee’s growth in Malaysia has been very quick in the last three years and they are incredibly determined in serving the local Malaysian market with localized flavors. We believe that they will do the same thing in the Philippines market.”

    ZUS Coffee is the latest Asian coffee chain to seek expansion in the Philippines this year as competition between Southeast Asia’s coffee chains heats up. Japanese boutique café group % Arabica relaunched in the Philippines in July 2023, 18 months after closing its three stores in the country. The Manila outlet is expected to preclude the launch of a % Arabica roastery in the Filipino capital before the end of the year.

    The following month, fast-food group Jollibee Foods Corporation (JFC) formed a joint venture company with Singapore-based Food Collective Pte. Ltd. (FCPL) to launch Common Man Coffee Roasters in the Philippines. The first site of the partnership, which also includes a deal to bring Tiong Bahru Bakery to the country, is set to open within the next few months.

    Meanwhile, Malaysia’s Berjaya Food is set to open the first Paris Baguette store in the Philippines in the fourth quarter of 2023, with five outlets expected within the next 12 months. Berjaya Food previously brought the South Korean bakery café chain to Malaysia in January 2023.

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