ZUS Coffee defends price hike, doubles down on brand strategy and expansion

ZUS Coffee has announced a 3% price increase on most of its drinks, citing rising costs, but the brand insists its long-term vision remains focused on quality.

Speaking to A+M, ZUS Coffee said the decision was not taken lightly and reflects a delicate balance between maintaining affordability for customers and ensuring the sustainability of its operations.  

"At ZUS Coffee, we’ve worked tirelessly to absorb rising costs wherever possible," a ZUS Coffee spokesperson said.

"However, the unprecedented surge in the price of Arabica coffee beans and cacao, coupled with global supply chain challenges, has forced us to make adjustments."  

The brand added that the Arabica coffee prices are at its highest since 1977, while cacao prices have risen over 160%. "These increases significantly impact the costs of raw materials essential to our products," it explained. 

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"We’ve kept price increases to 3% for most of our menu to ensure our offerings remain accessible. At ZUS Coffee, we remain competitively priced for specialty coffees," said the coffee brand.  

Since announcing its price hike, the brand said it has received "mixed responses" from its customers." However, the coffee brand assured that it believes in making its most-loved products "as accessible as possible".  

"Optimising our supply chain has allowed us to keep these necessities - espresso, americano, CEO latte, coconut latte and CEO coconut latte at their current prices so customers can continue to enjoy their favourites without any changes," ZUS Coffee told A+M.  

When asked about its future expansion plans, ZUS Coffee said affordability remains a cornerstone of its promise to customers.

"By streamlining operations, leveraging bulk purchasing power, and innovating our menu offerings, we aim to continue providing high-quality, reasonably priced products, even during challenging times," ZUS Coffee said. 

ZUS has been rapidly expanding across the region in the past year. The brand opened its Changi Airport outlet in Singapore in October 2024 and recently launched its second outlet at Westgate Mall in January this year. It launched its Brunei outlet in November 2024, followed by the Philippines a month later.  

ZUS Coffee's price hike also comes as competition brews within the coffee industry in Malaysia. 

Chinese coffeehouse chain Luckin Coffee recently opened five outlets across Malaysia in January this year, with the first two outlets opening at Sunway Pyramid and Menara EcoWorld on 23 January.  

A spokesperson for Luckin told MARKETING-INTERACTIVE that the brand intends to "revolutionise Malaysia’s coffee landscape" through a tech-driven business model and innovative retail experiences.

"We believe that with Luckin coffee tech driven business model, we are able to bring a different experience to Malaysians."   

Similarly, Malaysian coffee chain Oriental Kopi is reportedly said to raise RM183.96 million through an initial public offering (IPO) on the Bursa Malaysia Ace market in January 2025. 

According to The Edge Malaysia, Oriental Kopi has reportedly designated RM75.78 million of the IPO funds for working capital and RM53.68 million to establish a new head office, central kitchen and warehouse.  RM36.4 million will also be used for the expansion of cafes within Malaysia. 

The remaining proceeds have been allocated for marketing activities in foreign countries, expansion of its various packaged food segments, and to cover the cost of listing expenses.