S'pore Kopy Kids Take Off With 70-Location Vending Expansion

The Rise of Kopi Vending Machines in Singapore

Singapore has a vibrant and diverse coffee culture, with everything from traditional kopitiams to modern specialty cafes. However, for Leow Jun Heng and Loh Jian Yuan, the simple yet comforting cup of kopi remains their preferred choice. Their journey into the world of kopi vending machines began in early 2024 when they met through mutual friends and bonded over their shared love for the beverage.

The duo soon noticed that the cost of running a kopitiam had increased significantly, especially after the pandemic. This made it harder for people to access a consistent and affordable cup of kopi. “Getting a consistent cup of kopi is getting harder,” said Jun Heng. “The pandemic accelerated this trend, with some areas stopping operations.”

Determined to address this issue, they decided to explore vending machines as a solution. Drawing on Jun Heng’s experience in the vending machine industry and Jian Yuan’s barista skills, they launched Kopi Near Me, a kopi vending machine business that has grown rapidly in just one year.

A Localized Approach to Coffee Vending

Unlike traditional vending machines that typically offer Western-style coffee options, Kopi Near Me focuses on local flavors. Their machines serve three hot drink options: Kopi, Kopi-C, and Kopi-O. Customers can also customise their drinks to be thicker (gao), less sweet (siew dai), or without sugar (kosong), with prices ranging from S$1.10 to S$1.70 depending on the location.

Jun Heng explained that having localized offerings resonates more with consumers in Singapore. “It’s no longer just prepackaged food. Now, vending machines are trying to push the limits of what’s possible to be served.”

However, achieving the right taste and consistency proved challenging. Different vending machine models have varying calibrations and systems, which made standardizing recipes difficult. To test their concept, the duo purchased 10 different vending machines, requiring a significant upfront investment of S$200,000.

Perfecting the Recipe

Jun Heng and Jian Yuan spent approximately nine months perfecting their recipe and sourcing the right beans from local suppliers. In October 2024, they deployed their first vending machine at Sunshine Plaza. Just a year later, Kopi Near Me now operates over 37 machines across the island.

Location selection involves both strategy and experimentation. Their core focus is on areas with frequent vending machine users, such as office buildings and industrial zones. They also target niche audiences like hospital staff and army base personnel.

This approach helps offset downtime. “During holidays, office and industrial areas may do poorer, but locations like Tanah Merrah Ferry Terminal, where people travel to Batam or Bintan, perform extremely well,” said Jun Heng.

So far, the response has been promising. “We’ve served about a quarter of a million cups of coffee,” he added, noting that the company generates monthly revenues of approximately S$80,000 to S$90,000.

Expanding the Fleet

To cater to different needs, Kopi Near Me introduced tabletop machines in March. These smaller, portable versions allow the business to increase touchpoints and use cases, diversifying revenue streams and opening up partnership opportunities with companies like Japanese drugstore giant Welcia, Singaporean health food chain Grains & Co, and Chinese fast food buffet brand Hundred Grains.

Currently, the company operates a total of 70 vending machines, with plans to expand further. Jun Heng and Jian Yuan aim to increase the number of touchpoints to 300 by 2026 and introduce more local drinks such as Teh and iced options.

Ensuring Long-Term Sustainability

As the business grows, the duo is taking a pragmatic approach to ensure long-term sustainability. Specialised vending machine businesses require resilient systems to maintain ingredient supply, which is more complex than stocking canned drinks and packaged food. They are focusing on strengthening workflows and team structure to support growth.

With more businesses entering the vending machine space, customer expectations have risen. This has pushed them to introduce more innovative and convenient F&B options. While the economic challenges remain, Jun Heng and Jian Yuan are eager to tackle them head-on.