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.
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.
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.
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 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.
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.
