Is bubble tea fad back?
The bubble might not have burst after all, says one man who quit
his job to try and inflate the flagging craze for his
beverage
THE bubble tea fad went bust about four years ago.
Is it being primed for a second coming?
By Shree Ann Mathavan
29 August 2006
THE bubble tea fad went bust about four years ago.
Is it being primed for a second coming?
People like Mr Johnson Woo would want to think so.
More bubble tea shops are sprouting up all over the island
again.
But the fact is that bubble tea has merely become cheap when
compared to its heyday, attracting more customers in the
bargain.
Then, a cup would have put you back $2.50. Now, it's just $1.
But Mr Woo, 40, believes that the fad is back. He even quit his job
as a driver last week and is investing in the business.
He intends to set up a shop next month and is currently scouting
for a possible location in the HDB heartland.
He was oblivious to bubble tea's initial boom and subsequent bust
in 2002.
AFFORDABILITY
His first taste of the popular beverage came only last month. It
was an Oreo cookie ice-blended concoction at his friend, Mr Alvin
Soo's shop, Best Talk, along Bangkit Road.
He was hooked.
A key reason why he thinks the fad is on its way back is its
affordability.
Said Mr Woo: 'I think what's important is the price now. It's
cheap, so kids will flock to buy it.'
In the meantime, he has been helping out weekly at Mr Soo's store
since last month to learn more about the business.
Is Mr Soo worried about training a new rival?
No, for him, it's about helping a friend.
Mr Soo, 41, was a victim of the bust. He had to close down two
bubble tea shops in 2003. Now, he has returned to the business
after he opened a new outlet last July.
TRYING AGAIN
Mr Soo and his wife, Madam Fiona Yeo, 37, had sunk $100,000 into
both stores for the initial start-up - including rental fees,
machines, franchise fees and ingredients.
He said: 'There were just too many shops. We were the only shop in
the area, but suddenly there were four other shops.'
As for their new shop, Madam Yeo said: 'We saw all the one-dollar
bubble tea shops coming back and business looked good. Since we had
the interest and experience, we decided to try again.'
They have added the bubble tea counter to Mr Soo's father's photo
shop. Set-up costs this time were only about $20,000 as they didn't
have to pay franchise fees. They get their supplies from local
suppliers.
To ensure that they will not be caught on the wrong foot again,
they have retained certain services such as passport photo-taking,
sale of phone cards and ice-cream.
Mr Pang Beng Seng, 51, owner of two bubble tea shops at Lot 1
Shopping Mall and Compass Point, has been in this trade since
2001.
He said he doesn't see the trend bubbling over as it once
did.
His shops are Cool Station at Lot 1 Shopping Mall and 3Food at
Compass Point.
According to a Straits Times report, at the height of the craze,
there were more than 5,000 shops, many of them single-shop
operators in the heartland.
As many as 1,000 cups were snapped up a day at an average
outlet.
Said Mr Pang: 'When something is 'in', when the trend is there,
people don't care about the price at all, they will willingly pay
$2.50 for a cup.
'But now bubble tea is back simply because it is cheap.'
Mr Pang said he too used to sell about 1,000 cups each day in 2001.
Now it's down to about 500 cups a day.
LOSSES
He said: 'I do cover costs, I'm not losing money. It's enough to
take a pay cheque home.'
He declined to reveal his profit.
Mr J Poh, 36, who closed down his bubble tea shop late last year,
said he does not rule out starting one again.
He ran a franchise from 2002 to last year before starting his own
in Tampines last year.
He said he had to close it down because the shop was in a
residential area and he did not get enough customer traffic. He
lost about $10,000 to $15,000.
He said: 'I will agree that it's on the rise. You can't go and
expect to make a quick buck. Now you have to sell more to make a
profit.'
The New Paper was unable to contact a major player, Sweet Talk
Dessert Pte Ltd, for comment. It runs about 20 outlets.
When The New Paper visited three different bubble tea shops, there
was a steady stream of customers, mostly students.
Siti Karimah, 16, a Sec 4 student from Fajar Secondary School,
said: 'It's a good thing. This drink is quite cheap compared to
other coffee outlets, plus they offer a lot more flavours
now.'
Musician Mr Tim Tan, 27 was however, sceptical.
He said: 'I think the number of outlets are at a minimum sustenance
level, but, personally, I don't think it will be back to the
peak.'
