How Southeast Asia’s coffee chains are brewing cross-border success

In Singapore’s famous Takashimaya shopping centre, those looking for a quick caffeine fix are spoiled for choice. There is, of course, the ubiquitous Starbucks, as well as an outlet of China’s rapidly expanding Luckin Coffee franchise.But it’s a third option, Kenangan Coffee – an upstart brand from Indonesia that opened its first branch in Singapore in 2023 – that most appeals to 27-year-old shopper Sarah Shah.“I really like Kenangan’s range of drinks, especially how they balance classic coffee flavours with unique local and Asian-inspired options,” the digital content and marketing designer told This Week in Asia.“I feel that it combines flavour, creativity and reliability better than many other brands … It strikes a balance between quality, convenience and price, which makes it an easy and reliable choice.”As global players from the US and China crowd into Southeast Asia, local chains are expanding across borders of their own – betting that cultural fluency, halal positioning and increasingly sophisticated digital tools can help them hold their ground.Analysts say while regional brands inevitably command less capital to scale at speed, they often edge global competitors by resonating more deeply with local consumers.“I’d say [Kenangan] is my go-to coffee shop, especially since I prefer to have coffee at Muslim-owned or halal cafes as a Muslim,” Sarah said.