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Malaysia’s biggest coffee chain expands to Manila; targets 150 stores by year’s end

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April 24, 2024
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Malaysia’s biggest coffee chain expands to Manila; targets 150 stores by year’s end

VENON TIAN, Chief Operations Officer of ZUS Coffee, looks like he doesn’t have time for joking around. After ZUS Coffee’s founding in 2019, they’ve managed to open 420 stores — while being interrupted by the lockdowns of 2020, mind you. At year’s end, he told BusinessWorld during the opening of another branch in SM Makati, they’re targeting to have a count of 700 stores in Malaysia. The Philippines, there are now 12 stores, this since the compa-ny’s arrival just five months ago. By the end of 2024, they plan to hit a total of 150 in the Philippines.

By his count, they have 420 stores in their native country, making them the biggest coffee chain there. Arguably the world’s biggest coffee chain, American-based Starbucks, has a smaller footprint, with their own website citing “more than 320 stores” (though Mr. Tian gave us a count of 380).

Their first expansion overseas is in the Philippines. Asked why, he said, “In terms of Southeast Asia itself, Thailand’s got very strong competitors; Indonesia’s got (ten) very strong in terms of fast coffee culture. Singapore — there’s just too many brands.”

“[Its a] nice country to go into,” he said about the Philippines. “You’re very familiar in terms of Starbucks, Tim Hortons (a Canadian chain), and all. Then why not introduce what we have?

“I think the Philippines is much more mature [as a coffee market],” he added.

ZUS, while having physical stores, is helped in its operations through an app. Customers have complete control over their coffee experience, from taste to temperature and order time. Reordering their favorite drink is as easy as a click, providing valuable insights for creating new flavors tailored to their preferences. ZUS Coffee specializes in locally inspired specialty coffees, including Filipino favorites like hot and iced Spanish Latte and Gula Melaka, along-side an array of Buttercreme Lattes, Frappes, and more.

It’s the strength of the app to which Mr. Tian credits their rapid expansion, despite opening right before the pandemic. “We have always been digital-ready, from Day 1,” he said. Recalling the lockdowns, “Instantly, overnight, everyone was ordering everything online.”

As for their beans, Mr. Tian says they source 100% Arabica from different countries such as Guatemala, Kenya, and Papua New Guinea, depending on the coffee bean season, to ensure the best quality. ZUS Coffee is committed to the practice of procuring only Direct Trade Beans. Any form of green bean procurement is done directly with the farmers of the beans and allows for quality, sustainability, and fairer prices that is then translated to the final cup that the customers pay for. Direct trade helps farmers develop to have a more sustainable future and growth. While it’s the moral choice, Mr. Tian said, “That helps us create good quality coffee.”

“You need to like your own product in order for people to like your product,” he said. Another sustainable measure they have taken is the use of rice straws. That stems from Mr. Tian’s own experiences as a diver who has seen the plastic pollution underwater.

“Ultimately, we’re running a business. It’s also making us to be able to sleep better,” he said about their sustainable choices. “In order to make myself sleep better, I want to make sure that whatever we use is actually sustaina-ble.”

The ZUS app is available on Google Play and the App Store. Ordering can also be done through GrabFood and foodpanda. — Joseph L. Garcia

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