Zus Coffee Aims for 200 New Outlets Across Southeast Asia in 2023

Zus Coffee Eyes Major Expansion with 200 New Outlets in Southeast Asia

Company Targets Multi-National Growth in 2024

Malaysia’s prominent coffee chain, Zus Coffee, is set to make a significant impact on the Southeast Asian market by launching 200 new outlets this year. In an exclusive interview with Bloomberg, CEO Venon Tian detailed the ambitious expansion plans that include new locations in Malaysia, the Philippines, Singapore, Thailand, and Indonesia.

Strategic Store Launches Across the Region

The expansion strategy involves opening at least 107 new stores in Malaysia, 80 in the Philippines, and 6 in Singapore, alongside penetrating the Thai and Indonesian markets for the first time. This move reflects Zus Coffee’s robust growth trajectory and its ambition to solidify its position as a major player in the region’s coffee retail sector.

Surpassing the Competition

Since its inception in 2019, Zus Coffee has experienced remarkable success, recently surpassing Starbucks to become Malaysia’s leading coffee chain. With 743 outlets, Zus has significantly outpaced Starbucks, which operates 320 locations in the country. Zus Coffee also boasts 120 outlets in the Philippines, underlining its strong regional presence.

Rewarding Taste with Value

In its most recent financial report, Zus Coffee revealed a substantial threefold increase in net income, reaching RM37 million (approximately US$8.4 million) in 2024. This impressive growth can be attributed to the brand’s focus on market-specific flavors, such as palm sugar-infused drinks in Malaysia and unique purple yam coffee in the Philippines.

Innovation Meets Accessibility

Transitioning from a delivery-focused kiosk to a widespread coffee retailer, Zus Coffee has enhanced its sales strategy, with around 70% of sales now derived from online channels, including delivery and pickup options. The brand’s tech-driven approach and efficient store construction allow it to offer coffee at prices over 20% lower than Starbucks, amplifying its appeal to a diverse customer base.

Tian emphasizes the brand’s mission: “It’s about how we make quality coffee accessible to most people,” which resonates through its mid-range pricing strategy that sits between RM5 at convenience stores and RM11 at premium outlets.

As Zus Coffee embarks on this ambitious expansion, the potential impact on the retail sector is significant. With increasing consumer trends toward affordability and localized flavors, Zus is poised to reshape the coffee landscape in Southeast Asia, providing fresh competition that prioritizes quality and accessibility.