ZUS Coffee brews big Southeast Asia push, but can it stand out?

ZUS Coffee is planning to open nearly 200 new stores in Southeast Asia this year.

It will open 107 new stores in Malaysia, 80 in the Philippines and six in Singapore said Venon Tian, chief operating officer of Zuspreso in an interview with Bloomberg. The coffee shop operator also plans to start its first stores in Thailand and Indonesia this year. 

Currently, the coffee-chain is the largest in Malaysia, overtaking Starbucks and has 743 stores in the country. Starbucks, in comparison, has 320 stores. 

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Meanwhile, ZUS Coffee currently has 120 stores in the Philippines and four in Singapore. The coffee chain also operates in Brunei under a franchise model.

Tian reportedly said that ZUS Coffee's success lies in its ability to localise flavours for each market. This includes palm sugar drinks in Malaysia and purple yam coffee in the Philippines.

MARKETING-INTERACTIVE has reached out to ZUS Coffee for more information.

But as ZUS Coffee ramps up expansion, the challenge will be standing out in saturated markets such as Singapore and Indonesia, where both global giants and homegrown names are well-entrenched.

Can ZUS Coffee cut through the crowd?

Indonesia’s coffee scene is no easy market to crack. “Indonesia's coffee scene is reasonably crowded, with loyal fans of homegrown brands such as Kenangan and the recently-listed Fore Coffee. For ZUS Coffee to stand out, it must go beyond pricing and focus on creating emotional connection with its Indonesian customers,” said Joel Shen, partner and head of tech and Indonesia at Withers.

That connection, he added, will come through hyper-local menus, authentic storytelling and community engagement. With more consumers boycotting Starbucks over the conflict in Gaza, Shen said ZUS Coffee should position itself as “a familiar regional neighbour, rather than just another competitor.”

Similarly, Izzudin Al Farras, head of the Center of Digital Economy and SMEs at INDEF Indonesia, echoed that flavours will be key. “They must create a unique flavour that appeals to Indonesian consumers’ preferences to stand out,” he said. “Additionally, ZUS Coffee should optimise its pricing strategy, as Indonesian consumers are sensitive to price.”

Brand strategist and former Landor head of Indonesia Nick Pegman warned against a one-size-fits-all approach. “The market is saturated across every tier: low, middle and premium,” he said. “ZUS Coffee can’t be all things to all people. It must choose a core audience - urban youth, students, young professionals - and build everything around them. Focus drives cut-through.”

He added that consumer expectations in Indonesia differ sharply by segment. ZUS Coffee will need to tailor not just product, but store design, tone and storytelling, all while staying true to its brand DNA.

“First impressions matter in Indonesia’s highly visual, status-driven culture. ZUS Coffee will need strong visual identity, relevant storytelling and cultural fit,"  said Pegman, adding that:

Image opens the door. Loyalty comes from experience.

That experience spans product quality, speed, service and store location. “Go where your audience is,” said Pegman. “Universities, malls, office corridors, transport hubs. Don’t just chase traffic, chase fit.”

He added that while pricing matters, perception of value is what wins loyalty. “ZUS Coffee should offer quality, consistency and customisation at a fair price. Compete smart, not cheap.”

Ultimately, ZUS Coffee must go beyond product and price. “People buy coffee, but they engage with brands. They want to belong to communities,” he said. ZUS Coffee must stand for something - ambition, hustle, individuality - and that narrative should show up at every touchpoint, explained Pegman.

From localisation to loyalty

In Singapore, the challenge is different. The market is crowded, but culturally open - and ZUS Coffee has room to move in.

“Brand strategy here means brewing not just coffee, but a sense of local pride and ritual,” said Yen Sim, chief brand officer at The Conscious Clan.

Rather than mimic global giants, Sim said ZUS Coffee can lean into its Malaysian roots and Singapore’s rich heritage - think pandan-gula Melaka lattes, local art, even a cheeky Singlish greeting on every cup. “Against competitors such as Luckin Coffee and Kenangan, ZUS Coffee can win hearts by speaking the cultural language of Singaporeans in a way no one else does,” she said.

Digitally, the brand already has the tools. “Picture a rainy-day perk that pings just as the downpour starts, or a latte art feed where the community votes on the next flavour. When every touchpoint feels personal, coffee becomes more than a transaction,” Sim said.

She added that innovation should be co-created. “Crowdsource flavours, co-create with local chefs — involve the ‘us’ in ZUS Coffee. It’s not just launching drinks, it’s building loyalty. Not just serving coffee, but becoming part of everyday life.”

As it expands, ZUS Coffee also raised prices by 3% on most drinks, citing surging raw material costs and supply chain pressures.

In February, the brand pointed to Arabica coffee prices hitting a 47-year high and cacao rising over 160% as key drivers. Despite the hike, ZUS Coffee said it remains committed to affordability, keeping core items like its espresso and CEO lattes at current prices.

A spokesperson told MARKETING-INTERACTIVE the brand is streamlining operations and leveraging bulk purchasing to continue offering accessible, high-quality coffee, even amid global market volatility.

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