Retail News CRM

Tag: ZUS

  • 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.

  • 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.”

    Lees ook: