Despite some recent controversies, local brand ZUS Coffee has been performing exceptionally well, particularly as many consumers have begun boycotting global products. However, while it’s positive that the company is attracting a growing customer base, the amount of money people are willing to spend on coffee daily has become increasingly concerning.
The CEO of EquitiesTracker, Alvin Vong, recently shared on his socials that Malaysians are willing to spend RM70 – RM100 a week (and ~ RM300 a month) on coffee. This is partly the reason why ZUS Coffee’s sales have improved significantly over the years.
“Well, Malaysians are surely quite rich. ZUS Coffee reported revenue of RM204.12 million in their financial year which ended on 30th June 2023 (FY2023),” Alvin wrote on his Instagram post. He then highlighted that this represents a huge leap from the coffee chain’s previously reported revenue of RM15.68 million in 2021. The businessman’s claims are supported by data from the Malaysia Coffee Association (MCA), which reported that 85% of millennials consume a cup of coffee at least once a day.
To further support his statement, the EquitiesTracker CEO presented the number of outlets for popular coffee brands in Malaysia, noting that ZUS Coffee has the highest number of outlets, with 478 across the country. Other brands include:
- Starbucks – 408 outlets
- Oldtown White Coffee – 200 outlets
- The Coffee Bean & Tea Leaf – 196 outlets
- Richiamo Coffee – 150 outlets
- Bask Bear Coffee & Toasties – 150 outlets
- GIGI Coffee – 139 outlets
The large number of coffee chain outlets nationwide makes them easily accessible for anyone looking to purchase a drink, especially if they are located near home or the workplace. Unfortunately, we cannot determine which of these popular brands has made the most sales in recent years but according to SinarDaily, Starbucks’ revenue fell by nearly half to RM138.65 million recently due to the ongoing boycott. If you’re curious about how much people are spending on coffee, here’s the breakdown to put into perspective.
In his post, Alvin suggested that if one buys a RM10 cup of coffee daily, they’d spend around RM300 a month. If they invested that amount with a 6% annual return over 10 years, they would accumulate RM48,742—almost enough for a 10% down payment on a RM500k house. While people are free to spend their money however they please, a report by Lifestyle Inquirer suggested that millennials would rather spend on coffee than properly invest in retirement. Quoting from The Star, despite the rising cost of living, people cannot live without their morning and afternoon boost.
So how do Malaysians feel about the data presented? Some argued that even if they start reducing the amount they spend, they still would not have enough for a home. Others suggested that millennials simply gave up on the idea of retirement and would rather focus on simple luxuries such as coffee.
Do you agree with these comments?
Sources: Instagram, TheStar, SinarDaily, LifestyleInq
