Kuala Lumpur, Malaysia – Malaysian coffee chain Oriental Kopi is set to raise approximately $40.9m through an initial public offering (IPO) on the Bursa Malaysia Ace Market this month.

A portion of the funds, amounting to $8m, will be allocated to expanding the brand’s footprint with plans to open 13 new outlets across Malaysia and two in Singapore this year. 

Another $12m will go toward developing a new head office, central kitchen, and warehouse in Selangor. Moreover, $444k will go to set up an additional 4 specialty retail stores in the central region of Peninsular Malaysia and Johor, $666k for the marketing expenses for its brands of packaged foods segment in Malaysia, and US$1.2m for marketing expenses in foreign countries.

Established in 2020, Oriental Kopi currently operates 20 cafes in Malaysia and one in Singapore. Among its signature offerings are Oriental Coffee, Signature Egg Tart, Nasi Lemak, Mee Siam, Nanyang Curry Chicken Rice, and Chicken Hor Fun.

Manila, Philippines – Filipino coffee chain Bo’s Coffee is set to open 85 new stores–35 by the end of this year and 50 by next year. This is according to Steve Benitez, founder and CEO at Bo’s Coffee at the sidelines of a recent industry event.

“As far as the company is concerned, we (will be) able to grow by 35 stores by the end of this year; and next year, we are looking at 50 stores,” he said.

In terms of international growth, Benitez said that they are also planning to ramp up its international expansion, specifically also expanding its existing operations in Doha and Dubai. Moreover, they are also talking with other partners, mentioning that Canada is also another potential market for expansion.

“We will have 16 stores by the end of this year in Doha and four in Dubai. Two are operating in Dubai, and 14 stores are already open in Doha,” he said.

Benitez added. “We are talking to other partners, and Canada is on the table… But it is going to be a five-year plan, so it is like a rollout of 10 stores in 10 years or 12 stores in 10 years.”

Bo’s Coffee was founded in 1996 by Benitez, with a large chunk of its local stores based in Metro Cebu where the chain is officially based. 

In 2018, the chain teamed up with Al Majed Grouping to open its first store in Doha, Qatar. It had also worked with Al Mulla Business Group for the chain’s expansion to Dubai, UAE.

Jakarta, Indonesia – Coffe chain startup Flash Coffee is doubling down its expansion to the Indonesian market despite the startup’s recent exits in the region, including in Singapore. It has also welcomed Jakob Angele, the former CEO at foodpanda, to the role of executive chairman and will operationally support the growth of Flash Coffee by leveraging his extensive expertise in F&B and the online food delivery industry.

According to Flash Coffee, it has increased its revenue per store by over 50% since early 2024 and reached operational profitability thanks to its new menu. As of this writing, Flash Coffee operates 67 stores in Indonesia and is progressing with further expansion across the market.

David Brunier, founder and CEO of Flash Coffee, said, “We have been excited about Indonesia and its potential since we opened our very first Flash Coffee store in Jakarta in January 2020. Thanks to the support of our loyal customer base and our strategic refocus on Indonesia as the group’s most mature market, we are now expanding our footprint in the country, with plans to add many new stores to our portfolio within the next 12 months. We’re just getting started.”

Each new store is designed to offer a unique coffee experience, featuring Flash Coffee’s signature drinks like Seasalt Palm Sugar Latte or Whipped Strawberry Matcha, user-friendly digital ordering on its proprietary app, and its new larger store concept with welcoming sit-and-stay design encouraging customers to stay and socialise.

Meanwhile, Angele–who also serves as a venture partner at White Star Capital–commented on his appointment, “We’re extremely pleased to see the recent changes and our hyper-focus on Indonesia to translate into tangible business success. I am very excited about what the future will hold for Flash Coffee. Indonesia is one of the most exciting and vibrant coffee markets worldwide. Flash Coffee is uniquely positioned to serve its growing demand for high-quality coffee.”

Hong Kong – Global coffee chain has launched its first community store in Hong Kong, which also serves as the chain’s 50th community store in APAC. The new store is located at the East Asia Mansion in Wan Chai, Hong Kong, and is the first community store to focus on providing meaningful opportunities for young people. 

Starbucks Hong Kong is also collaborating to enhance youth development with the Vocational Training Council (VTC), a provider of professional and vocational education and training in Hong Kong, and Junior Achievement (JA) Hong Kong, a nonprofit that helps young people learn about the working world through the first-hand experiences of volunteers. 

The new Community Store is set to become a nurturing hub for students to learn more about potential future careers, particularly in the food and beverage industry, through interactive workshops and career exploration programs funded by a grant from The Starbucks Foundation and a portion of the Community Store’s sales. Students will get the chance to gain hands-on experience, job shadowing, and mentorship from various Starbucks partners (workers). 

To inspire and prepare the next generation of talent for employment in the food and beverage (F&B) industry, these workshops will also be guided by seasoned experts from a variety of business sectors. The project aims to improve the food and beverage (F&B) sector in Hong Kong, where more than 95% of restaurants have trouble filling positions. 

The initiative is an extension of Starbucks Hong Kong and JA Hong Kong’s 2014 cooperation. With the help of The Starbucks Foundation, this collaboration has been able to provide over 350 kids from 21 nearby schools with the design thinking, coding, and entrepreneurial attitude they will need in the future starting in 2023. 

Speaking about the launch, Alan Chan, general manager, Starbucks Hong Kong and Macau, said, “Apart from offering the unique Starbucks Experience, it is also our aim to dedicate our efforts to making our beloved city a better place for the future generation. The collaboration with JA Hong Kong is a testament to our dedication, we hope to empower more youth through this new Community Store, helping them to build a fulfilling career in the food and beverage industry as well as developing the skills and mindsets needed for long-term success.”

Singapore – Oriental Kopi, a Malaysian cafe chain, is set to make its first overseas debut in Singapore by the third quarter of this year. According to Paradise Group, which will be the chain’s franchisee, they will be opening eight chains across Singapore in a span of three years.

Oriental Kopi opened its first coffee shop in 2021 and currently has 14 outlets across Kuala Lumpur and Johor Bahru. 

The chain’s menu includes its eponymous beverage Oriental Kopi – a Chinese-styled coffee made from a blend of arabica, robusta and liberica beans – alongside a range of traditional Malaysian and Chinese bakery and lunch dishes.

Speaking on the expansion, Edlan Chua, chief operating officer at Paradise Group, said, “We are thrilled to embark on the group’s very first joint venture with Oriental Kopi. Its commitment to quality resonates deeply with Paradise Group, and we are confident that it will be a well-loved concept by Singapore diners.”

Meanwhile, Calvin Chan, managing director at Oriental Kopi, commented, “We are confident that Paradise Group’s proven track record, robust business capabilities and unwavering dedication to culinary excellence in Singapore’s F&B industry will propel Oriental Kopi to greater success.”

Paradise Group wwas first founded in 2002, and operates 100 restaurants and cafés across its 12 food service brands. The group has a presence across nine Asian markets, including China, Thailand and Vietnam, as well as the US.

Singapore – After Tim Hortons APAC and multinational conglomerate Marubeni Corporation entered into an expansion partnership back in March this year, popular coffee chain Tim Hortons finally announced its debut in Singapore around November this year, with its first branch opening at VivoCity.

The expansion plays off into a fierce competition to dominate the coffee scene not only in Singapore but also in Southeast Asia. For instance, despite Flash Coffee announcing its exit in Singapore earlier this year, Indonesian coffee startup Kopi Kenangan made its recent debut in Singapore also this year.

Amidst a growing competition in the Singaporean coffee industry, MARKETECH APAC caught up exclusively with Vaibhav Punj, chief executive officer at Tim Hortons and MGCA Café; to learn more about their marketing strategies to flourish in this diverse consumer market.

Respecting the vibrant coffee scene through local offerings

Punj told MARKETECH APAC that knowing Singapore has a vibrant coffee culture, Tim Hortons immediately ‘felt at home’ already, considering that the chain’s 50-year expertise of coffee brewing and responsibly sourced coffee across the world will fit well to the local tastes of the Singaporean consumer.

“We currently have four different signature coffee blends which are expertly crafted by experienced Coffee Masters and roasted carefully in individual batches by Roast Masters who ensure the highest quality and consistency of each Tim Hortons cup. This commitment to quality also extends to our food where all Sourdough Melts, Donuts & Timbits are freshly prepared daily and always served with care,” he stated.

Singapore as a launchpad to expand offerings to SEA

He further added that Singapore presents an exciting opportunity for Tim Hortons’ expansion into Southeast Asia, driven by compelling factors. 

Citing a report by the International Coffee Organization, the surge in global coffee consumption, notably within Southeast Asia, offers a promising avenue for growth. 

“Leveraging Singapore’s esteemed global position, we see it as an ideal launchpad for Tim Hortons’ offerings in the region. Understanding Singaporeans’ deep passion for coffee, seeing it as more than just a drink but a core part of their lifestyle, resonates with our commitment to delivering exceptional coffee experiences beyond the ordinary,” he explained.

What’s next for Tim Hortons in SEA?

Punj notes that aside from its planned expansion to Malaysia and Indonesia next year after regulation processes, Tim Hortons plans to open more outlets in Singapore: NEX in December, Suntec in January 2024 and One Raffles Place in April 2024.

Aside from this, they are also planning to build an innovation pipeline to introduce more iconic favourites including localised flavours into their menu, and many of these inputs have come from their guests who have been an inspiring source of ideas and feedback.

Lastly, they have also launched their app in Singapore which includes a loyalty program that offers exclusive member benefits and rewards as they spend with them. Punj also added that they are working to enable a seamless ordering experience that includes app and web ordering for dine-in, pre-order pickup and delivery.

“Singapore’s strategic location and the local market’s enthusiasm for innovative coffee brands serve as a catalyst for our expansion plans into Malaysia and Indonesia. This strategic alignment combines market appeal, economic viability, and cultural resonance, positioning Tim Hortons for substantial growth within this vibrant Southeast Asian market,” he concluded.

Singapore – Tech-enabled coffee chain Flash Coffee has announced its exit from the Singaporean market, closing all of its 11 local chains.

In a statement to MARKETECH APAC, a spokesperson for Flash Coffee said that the closure of its Singaporean presence was to focus more on its more promising markets.

“To facilitate this renewed focus, we have ceased operations in Singapore today, comprising 11 stores out of our ~200 global stores. This decision wasn’t made lightly, especially as we have nothing but love for our team and our customers in Singapore,” they stated.

Moreover, despite said exit, the company said that they will remain firm in their mission to serve up coffee across Asia and likely some additional markets in the medium term, and stay committed to scaling their business sustainably in the long term.

“Most of our markets have demonstrated tremendous traction on top of a healthy foundation and show strong unit economics and future growth potential, with some of the markets nearing EBITDA break-even in the coming months already,” they added.

Flash Coffee also assured that the well-being and future of their employees remains their utmost priority. They have also extended our deepest gratitude to their dedicated customers in Singapore. 

“Your trust, love, and support for Flash Coffee have given us the opportunity to serve up millions of high-quality brews,” they concluded.

Flash Coffee recently completed its Series B financing round back in May raising US$50m in funding. Back then, the company said it is doubling down its presence in Asia-Pacific, which also includes its target markets of Indonesia, Thailand, Hong Kong and South Korea.

Singapore – Indonesian coffee startup Kopi Kenangan has finally made its debut into the Singaporean market on September 26. The debut branch, located at Raffles City, marks the coffee brand’s foray into the diverse Singaporean market, amidst a growing coffee market in the tiny nation. Since its inception in 2017, Kopi Kenangan has a total of 900 stores in 3 countries, including 67 cities across Indonesia, and more than 20 stores in Kuala Lumpur, Malaysia.

In an exclusive interview with MARKETECH APAC, Kopi Kenangan stated that its Singaporean debut not only marks their continued foray into the the Southeast Asian market but also in response to a thriving local coffee scene in Singapore. 

“It has always been our vision to transcend the conventional perception of Indonesia’s exceptional coffee beans and introduce them to the world as a brand and not just a commodity. Our aspiration is to introduce the world to the unparalleled richness and flavor of Indonesian coffee, and our store opening in Singapore marks another milestone in achieving that vision,” they said.

For the company, the expansion matches well with their vision of of combining local tastes with a global palate, as well as setting it as a vital steppingstone for their expansion in the region and globally.

“In terms of Kenangan Coffee’s SEA expansion, Singapore has always been on our radar due to its unique position as an F&B hub. From a multicultural society to being an international hub, Singapore is an ideal gateway to the global arena and introducing our brand to this market would allow us to reach a wider audience,” they also told MARKETECH APAC.

It is also worth mentioning that prior to Kopi Kenangan’s Singapore expansion, the company first noted local consumer trends in order to tailor their local coffee offerings better for customers, as well as establishing its ‘Kenangan Coffee Training Academy’ in Singapore, offering comprehensive training to their baristas ahead of their inaugural store opening.

Moreover, they have also found that Singaporean consumers are increasingly looking out for more accessible options for coffee, especially given that more international brands are entering the market with a premium price range. 

“The profound love that Singaporeans have for coffee, from kopitiams to contemporary cafés, was also what inspired Kenangan Coffee’s leap into this vibrant market. The city’s robust local coffee scene and its global F&B prominence make our expansion here a pivotal milestone, and we are thrilled to introduce our authentic Indonesian coffee flavors to Singapore,” the company explained.

While Kopi Kenangan firmly believes that there are abundant opportunities in Indonesia, their international expansion has become a necessity as they are confident that their products and business model will be warmly embraced in key markets across the ASEAN region.

“Our brand started in our belief to create accessible and affordable high-quality coffee, and that has been at the heart of all our stores, even as we expand into international markets. We differentiate ourselves from other competitors in this increasingly saturated coffee scene by adhering to strict raw material processing standards, and by deploying the highest-grade, best-in-class coffee equipment such as the Black Eagle Maverick Machine,” they said.

When asked what’s next for the coffee brand, they stated that their marketing strategy across Southeast Asia, including Singapore, would focus on highlighting their unique selling points and value propositions, to allow them to differentiate themselves from their competitors.

“A solid marketing strategy also involves market research and analysis, which helps in understanding customer needs, preferences, and behavior. We believe that this knowledge is crucial for us to meet evolving customer demands – besides conducting the consumer research prior to our entry into Singapore, we also have a propriety mobile application that offers a streamlined, omnichannel customer experience,” they concluded.

Hong Kong – The 113-year old Moroccan coffee chain Bacha Coffee has officially unveiled its inaugural boutique and takeaway experience chain in Hong Kong, located at the IFC mall. 

Guests on the go may indulge in the unique Bacha Coffee takeaway experience, where they can choose from over 200 coffees prepared to order either hot or iced, alongside an assortment of 8 varieties of multi-coloured signature sweet and savoury croissants in addition to other house-made kouglof, brioche and pound cakes.

Moreover, beyond the takeaway experience, the immersive boutique revives the time-honoured luxury of traditional, slow-roasted beans and bespoke grinds for a new generation of coffee lovers. Offering exclusively Arabica coffees from farms in 35 countries, Bacha Coffee features over 200 varieties of coffees which can be purchased in-store.

Taha Bouqdib, president and CEO at V3 Gourmet, parent company of Bacha Coffee, said, “Bacha Coffee is the product of a rich legacy, a brand that has ripened over storied brews since 1910. This first opening in Hong Kong at ifc mall will ignite the imagination of our guests in the same way that coffee transports us to faraway destinations.” 

He added, “The boutique reflects the voyage from the birthplace of coffee, Ethiopia, to the rest of the world. It also reflects that moment when time stops, when you take your first sip of Arabica. Bacha Coffee is not just another coffee, it is another world.”

Manila, Philippines – Popular Malaysian coffee chain OldTown White Coffee has officially opened its first branch in the Philippines. The inugural store was launched May 25 at SM City Grand Central, located in the city of Caloocan in Metro Manila.

OldTown White Coffee first opened in 1999 at the city of Ipoh in the state of Perak in Malaysia. They were founded by Goh Ching Mun and Tan Say Yap.

The coffee chain was then taken over by by American-Dutch holding company JDE Peet’s in 2017. The chain was acquired for a total of US$361m.

At present, OldTown White Coffee has branches in the markets of Singapore, China, Indonesia, and Australia.

Some of the dishes OldTown White Coffee offers include its famous Ipoh Chicken Hor Fun and Hainanese Chicken Chops, along with other Malaysian dishes, sandwiches, soup, noodles, and chicken rice meals.