Malaysia’s largest coffee chain Zus Coffee targets 200 Southeast Asian outlets this year
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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.
Questions & Answers
Q.What is the primary factor attributed to Zus Coffee's success and widespread appeal?
What is the primary factor attributed to Zus Coffee's success and widespread appeal?
The company's success is attributed to market-specific flavours, a tech-driven approach, and cost-efficient store construction. These factors allow them to offer quality coffee at prices over 20% cheaper than competitors, making it accessible.
Q.How significant are online sales channels for Zus Coffee's overall business?
How significant are online sales channels for Zus Coffee's overall business?
Online channels, including deliveries and pickups, account for approximately 70% of Zus Coffee's total sales. This high proportion highlights their tech-driven approach and initial focus on coffee delivery.
Q.What are Zus Coffee's immediate expansion plans for new outlets in Southeast Asia?
What are Zus Coffee's immediate expansion plans for new outlets in Southeast Asia?
Zus Coffee plans to launch 200 new outlets across Southeast Asia this year. This includes at least 107 in Malaysia, 80 in the Philippines, six in Singapore, and their first stores in Thailand and Indonesia.
Q.What was Zus Coffee's financial performance in the last reported period?
What was Zus Coffee's financial performance in the last reported period?
Zus Coffee reported a threefold increase in net income, reaching RM37 million (US$8.4 million) in 2024. This reflects the company's rapid growth and expansion within its markets.
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