Gong Cha makes another sudden departure from Singapore
Taiwanese bubble tea brand Gong Cha reportedly shut down all of its stores in Singapore yesterday (Oct 1), with all its Singaporean websites and social media platforms unavailable.
According to an article by Mothership, several posts on social media have noted the closure of many stores in recent months, with one Google review noting that its Plaza Singapura outlet has been replaced by another Taiwanese bubble tea brand Chi Cha San Chen.
In-person checks by Mothership also revealed that several outlets have indeed closed: a sign at its Nex outlet stating that the store is “closed for maintenance” and boxes could be seen at its Eunos Crescent store.
An additional search on GrabFood and foodpanda also found that all outlets are listed as closed, with 15 listings on GrabFood and five on foodpanda.
The brand’s second departure from Singapore
This isn’t the first time Gong Cha has left the Singaporean market. It first launched in the city-state in 2009 under a franchise led by Rodney Tang, General Manager of RTG Holdings. The franchise was eventually sold to Gong Cha Korea, and Tang eventually left to launch a homegrown bubble tea brand, LiHo.
Gong Cha temporarily exited Singapore in 2016, after Royal Tea Taiwan, the company owning the brand, did not renew a previous franchise agreement. It made a comeback in December 2017 under a new master franchisee led by Mr Kang Puay Seng, the co-founder and former managing director of local soy milk brand Mr Bean.
This sudden closure came as a surprise, and whether the move is temporary or permanent remains to be seen.
Vulcan Post has reached out to Gong Cha Singapore for comment and has yet to receive a response.
The latest major brand closure in Singapore’s F&B industry
Gong Cha’s departure from the Singaporean market marks another major casualty in the local F&B market, with major international brands, including Malaysian restaurant chain The Manhattan Fish Market and American sandwich brand Eggslut, having exited the city-state this Feb and Mar, respectively.
Gong Cha has been revered as one of the biggest bubble tea brands in Singapore and globally, alongside other local and international giants such as China’s CHAGEE, Singapore’s own LiHo and Taiwan’s Koi.
However, its sudden departure heavily implies that even the biggest companies, which have a massive appeal all over the world, could not sustain themselves in an oversaturated and competitive market. Especially in Singapore, where 80% of F&B brands have failed, with the lucky ones earning monthly margins as low as 5-7%.
So this brings us to two questions: what does it truly take to survive in Singapore’s F&B scene? What needs to be changed?
- Read more news articles we have covered in Singapore here.
Featured Image: Chris Tan via Google Maps, screenshot by Vulcan Post
