Singaporeans love their bubble and milk teas, but only a handful of brands gained a cult following.
Along with giants like KOI, Gong Cha, CHICHA San Chen, and local mainstays such as Each A Cup and LiHo, one brand stands out: CHAGEE.
Previously known as Ba Wang Cha Ji (霸王茶姬), the brand has gained popularity for its drinks and even went viral for its “tear and win” lucky draw event that occurred on the 10th of every month. This event gave customers a chance to win products from big-name brands such as YSL and Dior cosmetics.
Despite the praise from Singaporeans, many fans were shocked when the brand made a quiet and sudden exit at the beginning of 2024. However, they did not have to wait long for the brand’s return, as CHAGEE opened their new outlet at the heart of Singapore at Orchardgateway on August 9, just in time for the country’s annual National Day.
But one question remains: why did they leave in the first place? Vulcan Post spoke to CHAGEE’s execs to spill the tea.
Why did they leave in the first place?
According to Lawrence Wen, CEO of CHAGEE Singapore, the company saw “great support” from the local market when it first opened in 2019, and at one point, it had opened 12 stores islandwide.
They managed to gain a loyal fanbase in the crowded F&B market—with some even travelling across the Singapore-Malaysia causeway to satisfy their cravings—when the brand seemingly “disappeared.”
As for the reason for their abrupt exit, Lawrence stated that it was a “strategic decision.”
He first explained that CHAGEE Singapore previously operated via a franchise partnership model. However, he declined to comment further when asked if he could elaborate on why it did not work out.
Currently, the Singapore outlets are operating under the direct ownership of the main company based in China—simply put, there are no more franchises for the brand.
“[This is] to ensure that our teas remain attractive and accessible for tea lovers from all walks of life, without compromising taste and quality,” said Lawrence.
He added that CHAGEE also recognises Singapore’s position as a multicultural country and a strategic location as a global business hub. It has since set up its SEA headquarters in the city-state—making it an ideal launchpad and door for many international brands to enter the SEA market.
In addition, Lawrence stated that Singapore has an “affluent consumer base coupled with a growing appreciation for premium tea products” which increases the brand’s growth potential in the country.
Transforming the business
CHAGEE has opened three new “tea bars” in Central Singapore, all within the same month: Orchardgateway, Plaza Singapura, and Raffles Place.
The brand’s return to the city-state was highly anticipated by fans, with crowds forming long, snaking queues and some waiting for as long as an hour to receive their orders.
To keep up with the influx of customers and ensure smoother customer experiences, the brand rolled out in-app ordering and delivery and constantly upgraded the ordering process.
Jane Sun, CHAGEE’s APAC R&D Director, also shared that the brand has a unique exchange policy: They will remake your drink if you are not satisfied with it, which turned out not to be the brand’s only edge.
For starters, CHAGEE is not a bubble tea brand as they do not offer pearls or toppings to encourage customers to experience the “original tea taste.”
However, given that Chinese tea making has had a rich history for centuries, it seemed unrealistic for the younger demographic to appreciate the art, as they often prioritise speed and convenience.
“We hope to connect people and cultures through a great cup of tea, but also understand that traditional tea culture has quite a high entry barrier,” Lawrence emphasised.
Hence, the company embarked on a mission to modernise the tea-drinking experience and relooked at their store concepts and overall approach—ultimately pivoting from their takeaway kiosks for comfortable dine-in, sit-down tea bars.
Aside from offering a new menu, the company has also leveraged technology with their semi-automated tea-making equipment to increase their stores’ overall efficiency, as well as a Product ID Card and a Health Calculator on the CHAGEE app.
According to Gao Hongbo, CHAGEE’s Director of Singapore User Operations, these features are “a first” to be offered in the ready-to-drink industry.
“Technology and innovation play a crucial role in the growth and evolution of the CHAGEE brand and business in establishing itself as an international modern oriental tea brand,” said Hongbo.
More plans brewing ahead
CHAGEE is set to continue growing its global presence, having expanded from more than 4,000 outlets to over 5,000 stores in the last couple of years.
The brand is planning to open more stores in Singapore, with Vivo City and One Raffles Place being their next two stops and more to come beyond the central region by the end of 2024.
Lawrence, who previously worked at foodpanda Singapore as a CEO, expressed his ambition to transform the brand to become the “foremost brand in the beverage industry”, and that comes from harbouring an unwavering dedication to delivering exceptional customer experiences.
Our mission is to craft a seamless, end-to-end journey that not only delights but also inspires customers to return to our stores repeatedly. A key aspect of this focus is enhancing the digital experience, ensuring that every interaction from ordering and waiting for delivery is smooth and enjoyable for our customers.
Lawrence Wen, CEO of CHAGEE Singapore
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Featured Image Credit: CHAGEE Singapore