Starbucks, Tim Horton's Among Global Coffee Chains Eyeing Singapore For Expansion Despite Stiff Local Competition

In a bid to accelerate their global growth plans, major coffee chains are flocking to Singapore. The city-state is now seen as a strategic location for these brands to establish their presence and scale their operations.

What Happened: CNBC reported on Tuesday that several global coffee brands have launched new outlets in Singapore in recent months. These include China’s Luckin Coffee, Indonesian chains Kenangan Coffee and Fore Coffee, Canada’s Tim Hortons, and Taiwan’s Louisa Coffee.

These brands view their success in Singapore as a catalyst for their international expansion.

“There’s no better country than Singapore to jumpstart our global expansion plan,” commented Edward Tirtanata, co-founder and CEO of Kopi Kenangan, also known as Kenangan Coffee in Singapore.

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Singapore’s reputation as a global financial hub has made it a prime location for these coffee brands.

“I think they’re here in Singapore because we are a financial center. And they want their future investors to know about us,” stated Peng T. Ong, co-founder and managing partner at Monk’s Hill Ventures.

Why It Matters: Despite the existing heavy presence of brands like Starbucks SBUX and Dunkin’ Donuts, international coffee chains continue to see potential in the Singapore market. The global Roast and Ground Coffee Market is projected to grow significantly from 2023 to 2030, presenting a lucrative opportunity for these brands.

However, these chains are set to face stiff competition from local coffee shops, which offer coffee at highly competitive prices.

In the face of competition, Starbucks has also announced a strategy to enhance customer experience and double hourly income in the U.S. by the end of FY25.

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