Zus Coffee, a fast-growing Malaysian specialty coffee chain, is brewing up an international storm with the opening of its first outlet in the Philippines. The move comes on the heels of a significant investment from Filipino restaurant group Choi Garden Restaurant Company, and marks the beginning of the brand’s global aspirations. Situated in the bustling Eastwood City, Quezon City, the new venue is the first of six outlets the company plans to open in the Philippines this year
Zus Coffee, a fast-growing Malaysian specialty coffee chain, is brewing up an international storm with the opening of its first outlet in the Philippines. The move comes on the heels of a significant investment from Filipino restaurant group Choi Garden Restaurant Company, and marks the beginning of the brand’s global aspirations. Situated in the bustling Eastwood City, Quezon City, the new venue is the first of six outlets the company plans to open in the Philippines this year. In a coffee market that’s already seen the likes of Malaysian competitor OldTown White Coffee and Japan’s % Arabica, Zus Coffee aims to carve out its niche by offering quality coffee at an affordable price. We sat down with COO Venon Tian to talk about Zus Coffee’s ambitious plans, its strategic partnership, and what sets it apart in an increasingly crowded market.The story so far“ZUS Coffee started as a community-driven coffee kiosk with the sole mission of making specialty coffee more accessible to the communities in which we serve. With that mission and as we scale, we aim to be the largest coffee chain in Malaysia,” he told Inside Retail.According to Tian, the brand is currently the second largest coffee chain in Malaysia, and plans to open 350 outlets by the end of the year. He said the time is right to bring the homegrown brand outside of Malaysia.“The Philippines is the second fastest growing country in SEA. Taking into consideration Manila’s population size, we are confident that we can build a community-driven business at scale,” he added.The international foray comes after Filipino restaurant group Choi Garden Restaurant Company acquired a 35 per cent stake in the coffee chain in March.Tian said that the partnership with Choi Garden Restaurant Company is definitely a strategic one, with geographical and line expansion plans in development.“With the team’s experience in the F&B market, we can definitely learn from them in enhancing our food & beverage lines, as well as growth plans in the Southeast Asian market,” he noted.The APAC strategyThe brand’s move into the second fastest growing market in Southeast Asia is something that Tian feels will further validate what the brand’s business is doing right now. “We are ready to shift gears for markets that are dynamic in pace and scale,” he said .And while Zus Coffee has been successful in Malaysia with around 290 stores currently, Tian believes there will be a few key differences in the Philippines market when compared to the Malaysian market.“The key differentiators will be in product innovation, consumer behaviour, and technology adoption. We have to continue to innovate in R&D, marketing strategies, and real estate strategies,” he said.He also believes that parts of the Philippines are under-served, which creates opportunities for the brand.A crowded marketplaceOldTown White Coffee and % Arabica are other coffee chains that have entered or reentered the Philippines recently. So how will Zus Coffee set itself apart from these brands and other competitors in the region? “We’re swimming in a different lane as to the two coffee chains mentioned. We aim to serve coffee as a necessity and not a luxury, and to fulfil everyone’s everyday coffee fix,” he stated.The brand will also be serving up its products via the ZUS Coffee mobile app. Tian hopes this will enhance the purchase experience and make the coffee buying experience more seamless, enriching, and satisfying.Zus Coffee is known for its sourcing coffee beans from Brazil, and Tian said the brand is working towards centralising its procurement across the region. .Interesting times aheadIn terms of the brand ethos, Zus Coffee has always placed affordability as one of its key tenets. “A necessity should rightfully be affordable, even in one of the fastest growing economies in the world,” he explained.Tech advancements have also been a key driver for the brand. Their mobile app was developed back in November of 2019, just after the pandemic hit. This made it easy for its customers to get their fix with products being delivered to their doorstep through a seamless experience.“With accessibility and community being our company’s key pillars, we see digital channels as being of the utmost importance to serve the needs of our customers. It also helps us to understand our customers purchasing and taste preferences more deeply,” he said.