Gong Cha Exits Singapore Market After Franchise Agreement Ends; Plans For A Revamped Return Underway
Taiwan’s popular milk tea brand, Gong Cha, has ceased operations and shuttered all its outlets island-wide as of October 1. This move follows the expiration of its franchise agreement with Gong Cha Singapore, which has been running the brand’s operations since 2017.
All the physical stores were abruptly closed, and the brand’s digital presence was also taken down, including its website, social media accounts, and listings on food delivery platforms.
Kang Puay Seng, Gong Cha Singapore’s CEO, confirmed these developments, expressing his gratitude to customers, staff, and business partners for their support.
Future Prospects
Gong Cha’s Global has confirmed plans to re-enter the Singapore market next year. The global CEO, Paul Reynish, stated that the company is currently in the process of selecting a new master franchisee and will relaunch with an updated ‘Gong Cha 2.0’ store concept, which has already been successfully implemented in select international markets.
Gong Cha initially entered the Singapore market in 2009 but later withdrew due to a franchise dispute. The brand then re-entered the market under a new agreement with its now-former franchisee.
The decision to exit the Singapore market follows a period of strong global performance for the brand. Earlier this year, Gong Cha reported an impressive US$600 million in system-wide sales for the 12 months ending in December, a milestone attributed to its aggressive international expansion.
Questions & Answers
What is the reason for Gong Cha’s exit from the Singapore market?
Gong Cha’s exit from the Singapore market followed the end of its franchise agreement with Gong Cha Singapore.
Will Gong Cha return to the Singapore market?
Yes, Gong Cha Global has announced plans to re-enter the Singapore market in the coming year with a new master franchisee and an updated ‘Gong Cha 2.0’ store concept.
What has been Gong Cha’s performance in the past year?
Gong Cha reported strong global performance, with system-wide sales reaching $600 million for the 12 months ending in December. This success is mainly attributed to the brand’s rapid international expansion.