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ZUS Coffee Plans 50 New Locations in Thailand: Key Insights from Flash Coffee’s Journey in the Tech Coffee Battle

Article Summary:

ZUS Coffee, a Malaysian startup, is launching in Thailand with ambitious plans to open 50 branches by 2026, selling specialty coffee starting at 65 baht. This move comes as the Thai coffee market becomes increasingly competitive, reminiscent of the previous attempt by Flash Coffee.

Flash Coffee, known for its rapid expansion and app-centric model, faced significant challenges, ultimately leading to financial losses and branch closures. ZUS Coffee aims to differentiate itself with a focus on affordable specialty offerings while utilizing technology to streamline ordering processes.

However, the brand must navigate the complexities of competing with established players like Café Amazon and delicately balance technology with the human touch that Thai consumers appreciate. Key challenges include managing costs effectively and ensuring that its pricing remains attractive after promotional periods.

The upcoming entry of ZUS Coffee presents an opportunity to gauge the viability of the tech-coffee model in Thailand. Its success will depend on product-market fit and the ability to appeal to local tastes, particularly for signature offerings like its Spanish Latte.

As ZUS Coffee stands at the threshold of this crucial market, its strategies and adaptations may provide valuable insights into the evolving landscape of the coffee industry in Thailand.

Original Article:

A familiar picture in the Tech Coffee war? Keep an eye on ZUS Coffee that is preparing to open 50 branches in Thailand and expensive lessons from Flash Coffee that must not be overlooked.

If you feel like collage Or you have a feeling of dejà vu when you hear the news of the launch of a Tech coffee chain from your neighbor. that carries the App first strategy and raises large sums of money to invade the Thai market You didn't think of it yourself.

The Thai coffee industry is about to heat up again when ZUS Coffee Coffee startup from Malaysia Announced to officially plant its flag in Thailand with a goal of 50 branches by 2026, along with highlighting the point of selling accessible specialty coffee at a starting price of 65 baht.

But as a worker who has always watched this battlefield I couldn't help but ask a big question: Will history repeat itself? Because before this, a rising star like Flash Coffee It comes with exactly the same design, bright colors, innovative apps, and crazy expansion. But in the end, he had to get hurt and make a major military adjustment.

today Thumbsup I will take you to dissect ZUS Coffee's strategy and compare its form with the lessons learned from Flash Coffee to see what this newcomer has that is good enough to escape the curse of an expert market like Thailand.

ZUS Coffee, the challenger that comes with a capital of 1,900 million baht

ZUS Coffee is not a startup because since its founding in 2019, information from Crunchbase confirms that they recently closed a deal to raise more than 250 million ringgit or approximately 1.9 billion baht from large capital groups like KV Asia Capital, KWAP, and interestingly, Kapal Api Group Coffee giant from Indonesia

ZUS Coffee's business model is to bring technology to solve the pain point of delays and uncertainty of taste. Using the application as a center for customers to order, pay, and receive seamlessly, this is a successful formula that has allowed them to expand to over 700 branches in Malaysia and 1,000 branches throughout ASEAN, such as the Philippines and Malaysia.

For the Thai market, ZUS Coffee places its positioning at Affordable Specialty Or good coffee at a price that working people can drink every day. The price starts at 65 baht, which is the most dangerous price range. Because they have to compete with the market leader like Café Amazon, who is as strong as a rock. and secondary brands like Inthanin or Punthai

Case study at ZUS Coffee, you have to memorize it by heart.

It is impossible to mention the case of Flash Coffee An eye-catching yellow brand that created a phenomenon in Thailand about 4-5 years ago with an almost duplicate concept: App-centric, Grab-and-Go, Tech-enabled.

At that time, Flash Coffee quickly expanded branches in Thailand, hoping to use the Economy of Scale to fight, but the results were reflected in the company's financial statements. Flash Coffee TH Company Limited It's not as beautiful as you think.

  • Year 2022: Revenue of 169 million baht but net loss of 117 million baht.
  • Year 2023: Revenue drops sharply to 89 million baht and still has a loss of 53 million baht.

Revenue lost by nearly half in 2023 reflects retreat Or closing many unprofitable branches. The main problem with Flash Coffee that day was not just the taste, but the burn rate that was too high from renting a prime location. Employee wages and promotional giveaways to draw people into the app until the income per unit is not balanced

But despite being seriously hurt in Thailand and closing down business in Singapore, Flash Coffee is not dead yet. Recently, in 2025, they have a new commander. Bardon Matthew A former employee of Starbucks and Fore Coffee comes to sit in the CEO's chair with a new fund of $3 million to focus on a single market. Indonesia, focusing on branch level profitability Instead of expanding without opening your eyes and ears This is a sign that the Tech Coffee model is workable. But you have to be extremely precise about management.

So will ZUS Coffee survive in the tiger jungle?

Comparing ZUS Coffee with Flash Coffee in the context of the Thai market There are worrying similarities and interesting differences as follows.

  • Price trap
    • Flash Coffee tries to fight with promotional prices. But the normal price is evenly matched. Even if it's cheap, it's not the best. Whether it's premium or not, it makes finding Loyal Customers difficult.
    • ZUS Coffee launches at 65 baht, directly competing with the Mass Premium group. The challenge is to make customers feel like it's a better value. Eating a parrot in a gas station And it's clearly better than coffee carts. If you can't do it, 65 baht will immediately become expensive.
  • Tech vs Touch
    • Thai people really like apps, but they like talking to employees more. App-based persuasion can be a barrier for regular customers. ZUS Coffee has to find a balance between Tech and Human Touch, something that Thai brands are very good at.
  • Cost management
    • Flash Coffee made the mistake of investing in marketing and expensive rental fees.
    • ZUS Coffee must prove that the data it has will help reduce management costs. Is it true or is it just a marketing gimmick?

Thumbsup It is seen that the entry of ZUS Coffee is the second test of the model. Tech-Coffee Chain In Thailand, what ZUS has an advantage is having good teachers. This is Flash Coffee's painful lesson, causing them to be more careful. Don't recklessly burn money like your seniors.

The key to this game is not which app is smoother, but it is Product Market Fit Can the taste of ZUS Coffee's Spanish Latte really please Thai people who are addicted to intense sweetness? And the price of 65 baht, how long will it last once the promotion period ends?

As a marketer We must root for him because if ZUS Coffee succeeds, it will prove that Tech can truly revolutionize the F&B industry. But if it fails… It will be just another case study in the textbook.

Stop by and try the first branch of ZUS Coffee and see if their system really helps you get your coffee faster. Or is it just causing you to waste more time pressing your mobile phone? Don't forget to compare the taste with Flash Coffee in your memories.

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