What Is The News About:
- Bubble Tea brand Gong Cha took Singapore by storm ever since its establishment in the year 2009.
- Gong Cha since then, went on to expand to a total of 80 outlets islandwide, bagging SG$30million in revenue every year, making it the biggest brand in RTG Holdings.
- Gong Cha’s parent company in Taiwan, Royal Tea Taiwan, was sold to Gong Cha Korea which is owned by a Japanese private equity firm. With this, changes to the prior agreement are inevitable resulting in possible restrictions to manage Gong Cha like before.
- Mr Rodney Tang, the man behind Gong Cha, then decided that a new home-grown brand, LiHo is the way to go moving forward.
What Does It Mean For Singaporeans:
- Bubble tea lovers should already have noticed that Gong Cha outlets located at Bugis Plus and VivoCity have been rebranded as LiHo. This is probably a move to survey the market before making the decision to convert every Gong Cha outlet to LiHo.
- LiHo will not be using the ingredients they have been using for the past years under Gong Cha. The drinks will now be produced using ingredients from different suppliers. This might result in slight changes to the taste of the tea.
- RTG Holdings, is an experienced player in the F&B Industry, having managed Gong Cha for 8 years. Coupled this with brands such as Nene Chicken, Bornga and Paik’s Coffee which RTG Holdings has under their umbrella, RTG Holdings definitely has enough information on what appeals to Singaporeans’ tastebuds.
- Without the restrictions of the Gong Cha franchise, LiHo will have more flexibility to launch their own drinks to the public. These new creations are probably products based on years of experience and market research which are definitely something Singaporeans can look forward to.
source of news: Straits Times