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Fast-Growing Coffee Chains Thrive in the Philippines

by Jessica

Small-format coffee chains are making significant strides in the Philippines, with both domestic and international brands rapidly expanding. Leading the charge are Manila-based Pickup Coffee and Malaysia’s ZUS Coffee, which are focusing on smaller store formats and convenient, on-the-go coffee options.

Pickup Coffee, which opened its first physical store in Bonifacio Global City in June 2022, has quickly become one of Southeast Asia’s fastest-growing coffee chains. In April 2023, the value-oriented chain raised $26.7 million in a Series A1 funding round to accelerate its expansion. By September 2023, Pickup Coffee had reached 100 stores in the Philippines. The brand continued its rapid growth, expanding by 50% in just six months, from 200 stores in June 2024 to 300 stores by December 2024.

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“We’re committed to our mission of providing fast, delicious, high-quality, and surprisingly affordable beverages everywhere—one Pickup at a time. This is only the beginning,” said Francis Flores, CEO of Pickup Coffee.

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Other local brands have also been scaling up in the Philippines. Chains like Beanleaf, Black Scoop Café, Coffee Break, and But First, Coffee have embraced the small-format store model. But First, Coffee announced plans in March 2024 to double its footprint with 150 new stores throughout the year.

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International brands are also capitalizing on the demand for smaller-format coffee shops in the Philippines. ZUS Coffee, a Malaysian chain, made its international debut in the country in September 2023 and has since opened 75 stores. Meanwhile, Tomoro Coffee, an Indonesian on-the-go coffee chain, is investing $10 million in its Philippine operations, with plans to reach 100 locations by the end of 2024.

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In November 2024, Kopi Kenangan, another Indonesian coffee brand, entered the Philippine market with its first store at the Mall of Asia. The chain, known for its take-away focus, plans to open a second store in Pasig in December 2024. Kopi Kenangan aims to open 10 locations in the Philippines as part of its initial expansion plan with local franchisee Fredley Group of Companies.

According to World Coffee Portal’s Project Café East Asia 2024 report, the Philippines is the eighth-largest coffee market in East Asia, with over 3,200 stores. The market, which is currently dominated by US chains like Dunkin’, Mister Donut, and Starbucks, is expected to surpass 5,200 outlets by 2028.

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