Singapore's cup of bubble tea runneth over. The parent
company behind popular brand Gong Cha said the chain is returning
to the island's shores in the next several months in a "bigger,
better, upgraded format".
"We just want to make clear to our Singapore customers
that we are not leaving the market and we plan to come back pretty
soon," said Mr Kim Soomin, a partner at Japanese private equity
firm Unison Capital, in an interview with The Straits Times.
Unison Capital co-owns the Gong Cha brand with Royal
Tea Taiwan, the founder.
"Together with Korea and Taiwan, Singapore is one of
the most strategically important and successful markets for Gong
Cha's growth so there's no way we want to leave," said Mr Kim.
He added that the company has not set a target for the
number of outlets it plans to open by the end of the year. "As many
as we can. We are not in a rush to grow in terms of quantity."
The announcement comes after the conversion of all 80
Gong Cha stores here to LiHo outlets. The move was completed on
Monday by RTG Holdings, which brought Gong Cha here in 2009 and
expanded it islandwide.
Just before the conversion, the Gong Cha Singapore
outlets were raking in about S$30 million in annual revenue, making
the country one of the top three contributors to Gong Cha's overall
turnover, which stood at over US$70 million (S$96.6 million) last
year.
Including those 80 outlets, there were about 1,400 Gong
Cha outlets worldwide.
RTG managing director Rodney Tang decided to leave the
Gong Cha franchise and launch LiHo when he learnt that Royal Tea
Taiwan had been sold to Unison Capital without his knowledge.
He had also found the terms for an agreement to renew
his Gong Cha franchising licence more restrictive, with clauses
that would have affected his ability to manage RTG's other brands
effectively.
RTG's portfolio includes Nene Chicken, Korean barbecue
chain Bornga and Paik's Bibim.
Mr Tang told The Straits Times yesterday he was glad to
hear that Gong Cha would be returning to Singapore. "The brand has
a special place in the hearts of Singaporeans and I wish them all
the best making it as big as we did in the last eight years."
Mr Kim said: "We had a tremendous relationship with
Rodney. It's sad that things didn't work out and we had to
terminate that relationship, but I think both parties have to move
on. "We are not here to compete with LiHo. It is not LiHo versus
Gong Cha."
Unison Capital and Royal Tea Taiwan are still in talks
with various potential partners for Gong Cha's Singapore comeback
and they have not yet decided whether it will return as a franchise
again, or be directly-owned.
"We've had multiple enquiries since the news broke,
from potential business partners ranging from individuals to food
and beverage companies that already have business operations in
Singapore and some financial investors too," Mr Kim said.
Whatever the business model, he added, the brand will
be focused on what customers want. "First, we'll bring back what
Singaporean customers loved about Gong Cha. On top of our Singapore
experience we are also operating in Korea, Taiwan and Japan, so we
have accumulated a lot of experience and know how," he said.
"So next, I think it's time to bring new colour to the
Singapore market, for example, by introducing a more modern look to
our stores and logo and a new menu which we'll customise for
Singapore customers."
ST
