This Coffee Chain Wants a Slice of the Young Coffee Drinkers Market

There’s a brand new store for on-the-go coffee lovers in the metro. UCC Ueshima Coffee Philippines, one of the coffee and restaurant chains run by the Mugen Group, has unveiled its first and newest concept kiosk at Petron Bel-Air in Makati City. Called XPRESSO by UCC, the venture signals the company’s foray into the growing market of young caffeine drinkers.

The concept of mobile coffee shops or kiosks has been booming in the past few years, following the shift in preferences of the younger market, specifically millennials and Gen Zs. These consumers now prefer getting their cup while on the run. Think fast food, but for caffeine. So, it did not take long for coffee chains like UCC—popular among high-end and older customers—to tap into the new market.

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"The younger people now [love] to drink good, better coffee," Hubert Young, president and CEO of UCC Philippines, told Esquire Philippines. "We [want to] reach to them and say, ‘You are part of this.’ Why? We see so many coffee shops, and they’re not shops, but more of [takeout counters] because Gen Zs [and] millennials [are always on the go]. So, we’re creating a venue which they can call theirs."

Perhaps the difference with XPRESSO by UCC is that it offers an entirely new menu, specifically crafted for the market with "limited spending capabilities." Prices of its coffee and non-coffee beverages range from P60 to P180, while pastries and other food items are sold between P70 and P120. These are significantly cheaper than its parent brand’s regular offerings, which usually cost more than P200 (for every drink).

More coffee kiosks are slated to open in the country, with at least five to 10 stores in the pipeline this year, according to UCC. These will all be in Metro Manila, but the company says it already has plans to expand to the provinces. Research from the World Coffee Portal earlier found the Philippines is the second largest individual coffee-consuming market in Asia next to Japan, with 80 percent of Filipinos drinking an average of 2.5 cups per day.

"The Filipino coffee market is dynamic and rapidly evolving," Young said. "Understanding and catering to the preferences of [millennials and Gen Zs], while balancing affordability and premium offerings, will be key to success in this vibrant market."

UCC Ueshima Coffee Philippines—the company behind XPRESSO by UCC—is owned by the Mugen Group, which also holds the master franchises for several other dining concepts including Coco Ichibanya, Tendon Kohaku, MOS Burger, Mitsuyado Sei-Men, Shaburi Japanese Shabu-Shabu, Shaburi and Kintan Buffet, and Yamato Café.