Kopi Kenangan turns Ebitda positive in Malaysia, targets second-largest coffee chain spot by 2026 

INDONESIA – Indonesian coffee chain Kopi Kenangan has achieved Ebitda positivity in Malaysia, three years after first entering the market, marking a major milestone in its international expansion strategy. 

Speaking on the sidelines of the TIA Conference in Jakarta, co-founder and Chief Executive Officer Edward Tirtanata said the company expects to become Malaysia’s second-largest coffee chain by 2026.  

The firm currently operates around 130 outlets in the country and plans to end 2025 with 150, before expanding to 200 by the following year. 

As of March 2025, Zus Coffee led Malaysia’s coffee market with 610 stores, followed by Gigi Coffee with 160 outlets. The market also includes major players such as Starbucks and Luckin Coffee, the latter having entered the Malaysian market earlier this year. 

Kopi Kenangan, known as Kenangan Coffee outside Indonesia, operates more than 1,200 stores across six countries, including Singapore, the Philippines, India, and Australia. Backed by investors Peak XV, Alpha JWC, and B Capital, the company has raised US$233 million to date. 

Tirtanata noted that the company’s revenue rose by 40% year-on-year in the third quarter of 2025 and that it is currently operating at an annualised US$200 million revenue run rate. Across all markets, its net Ebitda margin stands at about 18%, while in its home market of Indonesia, the net income margin ranges between 18% and 20%. 

The company plans to expand into Taiwan and a Gulf Cooperation Council (GCC) country by the first half of 2026, followed by entry into two new markets each year from then on. “We have been opening more than one store per day so far this year. Next month alone, we’ll open around 70 stores,” Tirtanata said. 

Despite increasing competition in Asia’s coffee sector, the CEO highlighted a shift in consumer preferences from instant to freshly brewed coffee.  

He attributed Kopi Kenangan’s resilience to its localisation strategy, which tailors recipes, flavours, and pricing to suit regional tastes. “If you drink our coffee in Singapore, Jakarta, Malaysia, or New Delhi, it will taste different,” Tirtanata said. 

To facilitate overseas expansion, Kopi Kenangan is leveraging franchise partnerships. In the Philippines, it collaborates with the Fredley Group of Companies, while in Australia, it expects to operate four stores by year-end, with plans to add 20 more across the Philippines by early 2026. 

Tirtanata acknowledged that entering new markets is “usually unprofitable for the first one or two years,” but said long-term potential remains strong.  

In September, Bloomberg reported that the company’s investors were considering partial stake sales, though discussions were still in early stages. 

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