Battle of brews: After Flash Coffee, who’s who in the fight for coffee supremacy in Singapore

SINGAPORE’S small population belies its place among the world’s top coffee-drinking countries. Analytics company GlobalData indicated that the city-state consumed 122.7 litres of coffee per capita in 2022 – or 330 ml per person per day. 

Yet, the voluntary winding up by Flash Coffee reflects the intense competition in the tech-enabled coffee scene here.

Tech investors have poured US$373 million into South-east Asia’s coffee chains, based on Preqin data.

These coffee brands claim a tech link by allowing customers to order through an app and either pick up their coffee or have it delivered. Order data is used in customer engagement and assessing store performance.

Juiced up by venture capital, these coffee companies grew explosively in their home countries and are now making their way into Singapore.

Here’s a look at the players in Singapore’s coffee market and how they’ve fared.

1. Flash Coffee

Headquarters: Singapore

Store count: Over 200 in Singapore, Indonesia, Thailand, Hong Kong and South Korea, including 92 in Indonesia (as at May)

Investors: White Star Capital, Delivery Hero

Known for its bright yellow and pink kiosks, the coffee chain backed by Rocket Internet exploded onto the coffee scene in 2020 – opening more than 200 outlets across seven markets.

On Oct 13, 2023, Flash Coffee’s Singapore business was found to have owed over S$14 million to more than 150 creditors. It has shuttered its 11 Singapore outlets.  

Founder and chief executive David Brunier and director Sebastian Hannecker gave notice that the company was unable to continue its business “by reason of liabilities”.

This comes after a round of layoffs in November 2022, which hit staff in Singapore and Indonesia.

It was also forced to close several stores in Taiwan this year, reportedly due to competitive pressures.

2. Luckin Coffee

Headquarters: China

Store count: 10,836 in China (as at end-June), 12 in Singapore

Investors: GIC (exited), Centurium Capital (controlling shareholder), IDG Capital, Ares SSG Capital Management

Luckin Coffee was a pioneer of the tech-enabled coffee chain model. Founded in 2017 in Beijing, Luckin was backed by some of the world’s biggest investors, including Singapore’s GIC.

In 2020, its top executives were found to have inflated sales by 2.2 billion yuan (S$419.4 million). The company was forced to delist from Nasdaq in June that year.

It has bounced back after a major restructuring. Luckin is China’s biggest coffee chain – overtaking Starbucks – and it has international ambitions. The company has grown rapidly since entering Singapore in March.

3. Kopi Kenangan

Headquarters: Indonesia

Store count: 868 in Indonesia, 2 in Singapore

Investors: B Capital, Peak XV, Jay-Z (through his firm Arrive), Serena Williams (through her firm Serena Ventures)

Tech unicorn Kopi Kenangan is Indonesia’s largest coffee chain and counts Jay-Z, Serena Williams and Eduardo Saverin’s B Capital among its backers.

Expanding internationally as Kenangan Coffee, the company thrived in Indonesia because of its social media virality and meme-inspired drinks.

The coffee chain made headlines in December 2021, when a round of funding raised its value to above US$1 billion.

4. Fore Coffee

Headquarters: Indonesia

Store count: 150 in Indonesia, 1 in Singapore

Investors: East Ventures, Pavilion Capital, SMDV, Insignia Ventures Partners

Fore Coffee aims to have as many as 200 stores in operation by the end of the year, including one in Singapore, which is set to open at Bugis Junction on Nov 9.

Noting that Singapore’s coffee market presents a “compelling opportunity”, Fore Coffee plans to sell 1,000 cups a day in the Republic. 

Chief executive Vico Lomar said he is also reshaping the coffee brand to include outlets with a dine-in experience.