A growing trend in upscale coffee shops from around the world is taking root in Singapore, drawing in a large and diverse demographic of coffee lovers in the city-state. Among the international coffee chains making a splash in Singapore, Luckin’s has taken the lead, boasting 30 outlets since March. Not far behind, Kenangan Coffee has opened four stores and Tim Hortons has two outlets.
But the real standout is Kopi Kenangan, a leading grab-and-go coffee chain in Indonesia that operates more than 800 stores across Indonesia and 22 stores across Malaysia. Launched in 2017, the brand has entered Singapore under the name Kenangan Coffee, with locations at Changi Airport Terminal 2, Jewel Changi Airport mall, Raffles City Shopping Centre, Takashimaya Shopping Centre, all known for featuring upscale brands and goods.
“We have a pretty grand ambition for our international expansion. We do believe that Singapore and Malaysia are just a stepping stone. And we want to expand to a lot more countries than where we are today,” said Edward Tirtanata, co-founder and CEO of Kopi Kenangan, speaking to CNBC.
With Singapore’s status as a global financial hub and a popular travel and business destination within Southeast Asia, its appeal as a launching pad for global expansion is clear. “There’s no better country than Singapore to jumpstart our global expansion plan,” Tirtanata added. “Singapore is a definite hub of Southeast Asia. [People] all over Southeast Asia fly to Singapore, simply just to transit, to travel or do business.”
This global coffee invasion has been met with open arms, with Singaporeans of all ages, genders, and incomes showing a strong love for coffee. According to a survey, nearly 55% of respondents said they bought coffee in the week prior to the survey. However, while international coffee chains have established a strong foothold in upscale malls and commercial areas, the market has healthy competition from local coffee shops, with prices generally lower.
Despite the competition, the appeal of Singapore as a market for international brands remains strong. According to data from Momentum Works, Starbucks is considered less premium in Singapore compared to other major global cities, making it easier for international chains to establish themselves in the market.
Singapore’s reputation as the world’s best business environment, with factors such as economic and political stability, further solidifies its status as an attractive destination for international coffee chains seeking to make their mark on the global stage. Overall, the trend of expanding international coffee chains in Singapore is set to continue, and with the city-state’s strong business and economic climate, the local coffee scene looks to be in for some exciting new additions in the near future.