Luckin, ZUS or Kopi Kenangan: what shop does a coffee chain want?

A coffee chain wants a visible ground-floor shop where customers and delivery riders can stop, collect and leave within minutes: easy parking, a clear frontage and a dense residential or office catchment around it. ZUS Coffee earned about 70% of sales from delivery and pickup, so access can matter more than the most expensive front row. Luckin opened first in malls and office towers before widening out.

Malaysia's modern coffee market grew 34% from 2023 to 2025, according to Momentum Works (The Malaysian Reserve, 6 July 2026). The three names landlords hear most are all expanding:

Price is part of the fight. The Malaysian Reserve compared a Lucky Cup Americano at RM6 with RM6.90 at ZUS. Low ticket prices mean these brands need volume, and volume decides the kind of shop they rent.

Their first sites say a lot about what they look for:

• Luckin opened its first two Malaysian outlets at Sunway Pyramid and Menara EcoWorld in Bukit Bintang City Centre, with the next three planned for The Sphere in Bangsar South, Pavilion Damansara Heights and Aeon Maluri (The Star Metro, 29 Jan 2025). That is a classic entry: high-traffic malls and office addresses for brand exposure first.
• ZUS grew on an app-first model. With about 70% of sales from delivery and pickup in April 2025, it can work from a smaller or cheaper unit, as long as riders and drivers can reach it.
• Kopi Kenangan is filling in Malaysian towns at a steady pace toward 200 outlets, which means many neighbourhood sites rather than a few landmarks.

Our post on how 99 Speedmart, Mr DIY and ZUS choose locations covers the wider chain playbook.

From the expansion patterns above and what chain site teams ask us, this is the checklist a landlord should prepare for:

• Ground floor, clear frontage. Signage visible from the road or the car park entrance.
• Quick stop access. Parking right in front, a spot for riders to wait, and no long walk from the car.
• Catchment. Offices for the weekday morning rush, housing for evenings and weekends, ideally both.
• Corner or front row, if the numbers work. A corner gives two faces of signage; see corner lot vs intermediate.
• Power and water. Espresso machines and blenders need reliable power and a water point near the bar.
• Co-tenants. Banks, pharmacies and convenience stores bring repeat visits.
• Term. Chains invest in fit-out and usually want a term with renewal options.

No. A brand that sells most cups through an app needs reach and access more than the priciest front row. That is why some chains take a side row or an end unit that is cheaper but easy to stop at. Others, building a brand in a new market, pay for the most visible address first, as Luckin did with malls and towers.

For a sense of what busy township ground floors ask, in SS15 Subang Jaya shop adverts asked about RM9,500 to RM26,000 a month for units of about 1,760 to 3,520 sq ft (MCE analysis of recent portal adverts, Nov 2026: last 6 months, shop types only, bait and duplicate adverts removed, middle half of asking prices). Prime office districts such as Bangsar South and Damansara Heights have too few recent adverts for us to publish a range.

Usually, yes. Chains tend to fit out properly, pay on time and draw steady footfall that lifts the whole row. The trade-offs are that they negotiate hard, want rent-free fit-out time and may close a weak outlet at the end of a term. Our comparison of chain brands and independent owners sets out both sides. If you want your unit in front of expansion managers, list it on our landlords page and see the coffee and drinks section of our brand directory.

If you are a café operator rather than a landlord, our guide to the best areas to open a café in Petaling Jaya compares hubs, and the bubble tea war article looks at the drinks side.

Written by Tok Ginstee (REN 37505), CID Realtors Sdn Bhd (E (1) 1855). Updated November 2026.