Even CHAGEE Failed in Singapore Before!

Who never fail before? Even CHAGEE Failed in Singapore Before!

From losing 12 franchise outlets to a remarkable comeback with 44 stores in just two years. But can the success last?

Today, CHAGEE (霸王茶姬) is one of Singapore's most recognisable premium tea brands, with 44 outlets listed on its Singapore website.

But did you know that CHAGEE once suffered a major setback in Singapore?

The Failure: 12 Outlets Gone Overnight!

Bawang Chagee initially entered Singapore in 2019 through a local master franchisee.

However, following a dispute and the subsequent parting of ways with the Chinese parent brand in early 2024, the former Singapore master franchisee abruptly closed all 12 existing CHAGEE outlets and rebranded them under an independent homegrown tea concept Amps Tea.

Imagine building a brand in a foreign market, only to see all 12 outlets disappear from your network!

It was a painful lesson in franchise risk, brand control and corporate governance.

But CHAGEE did not give up.

The Comeback: A Different Business Model

In August 2024, CHAGEE returned to Singapore. This time, it made one fundamental change:

No more third-party franchisees.

Instead, CHAGEE adopted a fully company-owned and corporate-managed model, giving it direct control over branding, product quality, customer experience and expansion.

Within approximately two years, CHAGEE had grown its Singapore presence to 44 outlets.

What changed?

The tea was still central to its offering.

But the governance, control and business model had changed.

This demonstrates an important business lesson:

Sometimes, the biggest breakthrough comes not from changing your product, but from changing how your business is governed.

But Can CHAGEE Sustain Its Success?

Singapore is one of the world's most expensive retail environments. High rents, manpower costs and rising operating expenses can quickly eat into profits.

And consumers are becoming more cost-conscious.

Take my favourite CHAGEE Boya Jasmine tea.

At the shop, one cup costs S$5.60.

But I can buy a Boya tea sachet for S$1.80 and brew it three times, at an effective tea cost of just S$0.60 per serving, 90% less, before adding milk and other preparation costs.

This raises a question:

How long will consumers continue paying a premium for convenience, branding and the in-store experience?

Opening 44 outlets is impressive. But keeping all 44 profitable, year after year, is a much greater challenge.

And unlike the previous franchise model, CHAGEE now bears the direct financial and operating risks of its Singapore stores.

The Real Lesson: Sustaining Sustainability

CHAGEE's comeback demonstrates the value of learning from setbacks, changing strategy and strengthening governance.

But sustainable success requires more than expansion.

PEOPLE × PERFORMANCE × GOVERNANCE = SUSTAINABLE VALUE

People: Will customers continue choosing CHAGEE, and can the company retain and develop its employees?
Performance: Can every outlet generate sustainable profits and cash flow?
Governance: Can management maintain quality, control costs and avoid expanding faster than the business can support?

CHAGEE has demonstrated that it can recover from a major setback.

Now comes the real test.

Opening 44 outlets demonstrates growth. Keeping them profitable demonstrates financial sustainability.

Because the ultimate measure of business success is not simply how fast you grow, but how long you can continue creating value.

That is the difference between achieving sustainability and sustaining sustainability.

By Andy Ng

Financial Governance & Strategy Advisor

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