Domestic operator Pickup Coffee and Malaysia’s ZUS Coffee are leading a group of fast-scaling coffee chains in the Southeast Asian country focusing on smaller footprint sites and on-the-go coffee
Pickup Coffee has opened 300 sites in the Philippines since launching in June 2022 | Photo credit: Pickup Coffee/Facebook
Small-format coffee chains are increasingly gaining market share in the Philippines, where both domestic and international operators have rapidly scaled over the last 18 months.
Manila-based Pickup Coffee opened its first physical store in Bonifacio Global City in June 2022 and has become one of the fastest-growing branded coffee chains in Southeast Asia. The value-focused coffee chain raised $26.7m in a Series A1 investment round in April 2023 to accelerate outlet growth and reached 100 stores in the Philippines in the following September.
Pickup Coffee has sustained rapid outlet growth over the last 12 months and increased its domestic footprint by 50% within the last six months alone, scaling from 200 stores in June 2024 to 300 in December.
“This 300th store opening marks our commitment to our mission to uplift everyone with fast, delicious, high-quality, and surprisingly affordable beverages everywhere – one Pickup at a time. This is only the beginning,” CEO Francis Flores said.
Alongside Pickup Coffee, homegrown chains Beanleaf, Black Scoop Café, Coffee Break and But First, Coffee have all scaled their operations over the last 12 months with a focus on small-format sites – with the latter announcing plans in March 2024 to double its footprint with 150 new stores this year.
International operators are also deploying smaller-format stores to gain market share in the Philippines. Malaysia’s ZUS Coffee made its international debut in the country in September 2023 and has since opened 75 sites, while Indonesian on-the-go coffee chain Tomoro Coffee is investing $10m in its Filipino business as it seeks to reach 100 sites in the country by the end of 2024.
Fellow Indonesian coffee chain Kopi Kenangan entered the Philippines with a store at the Mall of Asia in November 2024 and will open a second site in Pasig in December 2024. The take-away focused operator is seeking to open 10 stores in the Philippines as part of an initial expansion plan with local franchisee Fredley Group of Companies.
World Coffee Portal’s Project Café East Asia 2024 report shows the Philippines is the eighth largest market in East Asia by outlets, with over 3,200 stores. The market, currently led by US chains Dunkin’, Mister Donut and Starbucks, is forecast to exceed 5,200 outlets in 2028.