Since October 2023, global boycott movements have intensified in response to Israel's ongoing attacks on Palestine. These movements have gained significant traction worldwide, including in Malaysia, where they have had a substantial impact on the economy of several brands, notably the popular coffee chain Starbucks.
Berjaya Foods, the parent company of Starbucks Malaysia, reported a loss of RM42 million amid the conflict and boycott. More recently, Starbucks Malaysia itself posted a loss of RM91.5 million. This downturn has also been influenced by the rise of local competitors offering a variety of drinks with a unique local twist, delivering quality coffee at competitive prices, giving Malaysians more choices.
Malaysia's listed master operator for the country's Starbucks franchise Berjaya Food posts a RM42 million net loss for its latest financial quarter
— Afiq Isa (@pelabursaham) August 27, 2024
It acknowledged boycotts as a reason pic.twitter.com/S8xnYm89Pj
The Growth of Local Coffee Chain ZUS Coffee
With the shift away from supporting Starbucks, many Malaysians have embraced the local coffee brand ZUS Coffee, which has quickly gained a strong following. Founded in 2019, ZUS Coffee began as a small kiosk at Binjai 8 near KLCC and has since expanded into one of Malaysia's largest coffee chains, boasting 402 stores nationwide.
Some of ZUS Coffee's most popular drinks include the Spanish Latte, the CEO Latte, and the Buttercream Latte. For matcha enthusiasts, the Iced Cheese Crème Caramel Matcha is a top choice.
ZUS Coffee’s success can be attributed to their innovative marketing strategies, including the launch of their ‘Matcha Macam’ drinks, which captivated audiences with clever cat animations. These weren’t just any ordinary cats—one memorable billboard featured a cat licking the screen, a creative move that quickly went viral internationally.
But with such creative campaigns, one can’t help but wonder—what’s next for the brand?
ZUS Coffee To Open First Branch In Singapore
If you're a Singaporean coffee lover, get ready—your favourite coffee chain is making its way to Singapore! The excitement around ZUS Coffee’s expansion into the Lion City began when Changi Airport shared a teaser image, revealing a shop lot with ZUS Coffee branding on the first floor of Terminal 4.
This marks the arrival of the very first ZUS Coffee outlet in Singapore, sparing Singaporeans the drive to Johor for their coffee fix. Social media is buzzing with anticipation, as many Singaporeans eagerly await the opening, even though the island is already well-known for its abundance of coffee outlets.
Here’s some of the comments:
The real question now is how ZUS Coffee will stack up against the many established coffee chains in Singapore, including China's Luckin Coffee, a major competitor to Starbucks known for offering affordable and delicious options. To compete in this crowded market, ZUS Coffee may need to focus on pricing—if they can match or even undercut their competitors (with prices yet to be confirmed in Singapore), they could quickly become a strong contender.
At least now, Singaporeans won’t have to endure long lines at the Causeway just to get their ZUS Coffee fix in Johor.
What are your thoughts on this? Let us know in the comments!
*Sources: Visual and Reference Credits to Social Media & various cross-references for context.
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