Tag: Chagee

  • Asia-Pacific Foodservice Outpaces Global Peers with 4% Real Growth

    Asia-Pacific Foodservice Outpaces Global Peers with 4% Real Growth

    The Asia-Pacific restaurant sector expanded 4% in real terms through 2026, outpacing 1% growth across North America and Europe to lead global foodservice performance, according to Technomic Ignite data presented in November 2026 at the Global Restaurant Leadership Conference in Cannes, France.

    Worldwide industry turnover is tracking toward approximately 5.2% nominal growth, or 1.9% adjusted for inflation, even as supply-side shocks, geopolitical disruption, and accumulated food inflation between 25% and 40% curb discretionary purchasing.

    Dining frequency remains heavily weighted toward Asian markets: 92% of consumers in China, 85% in Thailand, and 80% in Singapore eat at restaurants at least once weekly, contrasting sharply with a global average that slipped from 74% before Covid-19 to 66% today.

    Chinese Chains Scale Footprints at Record Speed

    Top international chains based outside the United States are now dominated by Asian headquarters, taking seven of the top ten positions. Five of those seven operators are Chinese concepts: Luckin Coffee with 7 billion dollars in 2025 sales, hotpot operator Haidilao at 6 billion dollars, beverage chain Gu Ming at 4.9 billion dollars, Chagee at 4.7 billion dollars, and Mixue Ice Cream & Tea generating 3.5 billion dollars.

    Expansion figures across the sector show Chinese operators widening the footprint gap against Western legacy peers. Luckin lifted sales 48.9 per cent in 2025 while adding a net 8,708 stores. Gu Ming added a net 3,640 outlets on a 46.1 per cent sales rise. Value-focused chain Mixue posted 33 per cent sales growth while opening 10,996 net locations in a single calendar year.

    Overall sales for the world’s top 150 restaurant brands reached 637.4 billion dollars in 2025 across 596,561 units, up 5.7 per cent in sales and 8.8 per cent by store count. Chinese chains generated an aggregate sales lift of 19.1 per cent, while Japanese operators grew 10.8 per cent. Philippine brands expanded sales by 8.8 per cent, Thai groups registered 7.4 per cent, and South Korean companies posted 7.2 per cent, all exceeding the 4.6 per cent recorded by US-based chains.

    Beverage Formats Take Global Market Share

    Specialised tea chains have emerged as the fastest-growing foodservice category worldwide, posting a 20.9 per cent sales jump to 17.7 billion dollars. Chinese beverage groups accounted for all six of the world’s leading restaurant systems ranked by net store openings in 2025.

    Technomic noted that modern tea concepts were unclassified as a distinct cuisine category in its reporting just one year prior. Rapid rollouts by players like Chagee have formalised the segment across domestic and overseas retail real estate. Coffee shops placed third in worldwide category performance, gaining 7.3 per cent in sales to hit roughly 100 billion dollars.

    Asian and noodle dining concepts took second place among fast-growing menu types, climbing 9.4 per cent. Japan-based udon operator Marugame expanded its footprint beyond domestic sites into Indonesia, China, and the United States, illustrating the export viability of focused single-item models.

    Margin Pressures and Commercial Read-Across

    For landlords, franchisees, and commercial suppliers across Asia, this volume growth masks intensifying margin competition. Foot traffic remains stable across Asian capitals, yet global ingredient costs sit 25 to 40 per cent higher than levels recorded five years ago. Western groups operating in the region are turning to international franchise master agreements to sustain unit growth, as domestic Asian competitors capture mall leases through smaller, tech-enabled store formats with lower fit-out costs.

    The rapid network buildout of discount beverage chains creates direct operational challenges for traditional coffee and quick-service operators. Mixue and Luckin rely on tightly integrated supply chains and app-based ordering that depress average ticket sizes, forcing competing food courts and high-street retailers to rethink rental structures tied to turnover.

    Projections for Regional Foodservice Volumes

    Global consumer demand remains restrained by accumulated food price inflation, keeping discretionary budgets tight across mature and developing territories. Technomic senior principal David Henkes outlined the regional divide during the conference presentation:

    “The Asia-Pacific region is growing like crazy … [with] 4% growth, and again, this is real [growth], so this does not include any type of price increase or inflation,” Henkes said. “There’s no question that, like for a lot of the global economies, Asia Pacific is really driving restaurants and broader food service.”

    Technomic forecasts Asia-Pacific real foodservice growth will moderate slightly to 3.4 per cent in 2027. That projection leaves the region ahead of expected real growth of 1.3 per cent in North America, 0.8 per cent in Latin America, and 0.6 per cent across Europe.

  • Chagee Adds Live Calorie Calculator to Mobile App in Thailand

    Chagee Adds Live Calorie Calculator to Mobile App in Thailand

    CHAGEE launched an in-app calorie calculator across Thailand on 5 October 2026. The tool gives beverage buyers real-time nutritional breakdowns for custom recipes starting from 4 calories per cup.

    It calculates instant shifts in calories, sugar, fat, protein, carbohydrates and caffeine. Values adjust whenever a customer changes cup sizes, switches between hot and iced preparations, or adjusts sugar levels.

    Real-time nutritional tracking in the ordering flow

    Customers access the tool directly inside the CHAGEE App by tapping the Calorie Calculator icon, picking a beverage category, and opening individual product specifications. The interface updates the total nutritional payload as options change before checkout. This removes guesswork from sweetened or dairy-based beverages.

    The release accompanies the chain’s “Sip Better, Feel Better” marketing push in the Thai market. Lowest-calorie options highlighted on the platform include Da Hong Pao, Osmanthus Green and Peach Oolong brewed teas starting at 4 calories. Milk tea options, including BO-YA Jasmine Green, Osmanthus Oolong and Da Hong Pao, start at 119 calories.

    “At CHAGEE, wellbeing is at the heart. That is why we are committed to providing transparent nutritional information. The ‘Calorie Calculator’ is more than just a tool that displays what is in your cup. It gives people the freedom to customize and choose beverages that best suit their individual needs and preferences, making every sip enjoyable while promoting their wellbeing every day.”

    Store promotions tied to athletic activity

    Alongside the digital rollout, CHAGEE Thailand introduced a physical activity promotion running from 5 to 11 October 2026. Customers receive tiered purchase incentives by showing recorded running or walking activity from smartwatches or tracking apps at store counters.

    A verified 5-kilometre log qualifies for a free drink size upgrade. A 10-kilometre distance yields a THB 30 discount, and a 15-kilometre log unlocks a buy-one-get-one voucher. The promotion applies across the network except at CHAGEE Mahanakhon 74 and Don Mueang Airport branches, with redemptions capped at three vouchers per person through the app.

    Pressure shifts across Southeast Asian tea retail

    Tea chains across Southeast Asia face stricter scrutiny over sugar content and caloric density. Regional regulators are examining beverage labelling standards while consumer habits change. Digital ingredient transparency allows premium tea operators to defend ticket sizes. It also counters perceptions that commercial milk tea is entirely indulgent.

    For mall landlords and competing beverage franchises, embedding health metrics directly into proprietary ordering apps shifts footfall toward operators with robust digital ecosystems. Brands lacking unified digital ordering and dynamic recipe databases face higher barriers in retaining health-oriented consumers.

    Expansion beyond regional milk tea benchmarks

    This Thai app update follows regional product variations across Southeast Asia, including brand collaborations and seasonal market entries in Malaysia and Indonesia. Building functional digital tools into the ordering loop deepens customer lock-in within the loyalty program.

    Under the broader promotional schedule running through 15 October 2026, CHAGEE is distributing double loyalty points on Mondays. The company is also offering 30 per cent discounts on second drinks within curated low-calorie bundles, and allowing CHA Members to redeem accumulated points for fitness and Pilates sessions.

  • Chagee Same-Store Sales Fall 16.1% in China as Network Shifts Direct

    Chagee Same-Store Sales Fall 16.1% in China as Network Shifts Direct

    Chagee posted a 16.1 per cent drop in same-store gross merchandise value across Greater China for the second quarter, marking its fifth consecutive quarter of double-digit declines at home.

    Total revenue for the Nasdaq-listed tea chain edged up 2.5 per cent year on year to RMB3.4 billion (US$503.3 million) in the three months ended June 30, while operating income jumped 387.6 per cent to RMB524.7 million. Total gross merchandise value fell 5.5 per cent to RMB7.66 billion, weighed down by a 9 per cent contraction in Greater China to RMB7.16 billion.

    Network shifts to corporate stores

    Chagee is responding to cooling domestic demand by buying back franchised outlets and running them directly. In Greater China, company-operated stores jumped from 164 to 624 over the past twelve months, while franchised locations declined from a peak of 6,836 in September 2025 to 6,616.

    Those company-owned outlets made up 11.6 per cent of the total network at the end of June but generated 27.5 per cent of overall revenue. Direct-store revenue climbed to RMB940.6 million, offsetting an 18.1 per cent fall in franchise revenue to RMB2.47 billion. Meanwhile, active members fell from 50 million in the first quarter to 47.1 million.

    China’s beverage chains are grappling with the aftermath of an aggressive 2025 delivery platform price war that drove cup prices down to single digits. While rivals like Mixue and Heytea rely heavily on deep discounting and sheer store density, Chagee is attempting to lift unit margins by consolidating ownership of its best locations.

    Overseas footprint doubles

    Outside China, gross merchandise value rose 114.3 per cent to RMB504 million. Chagee expanded its international footprint to 399 stores from 208 a year earlier, with initial momentum in new territories including South Korea, where its first three Seoul locations sold more than 16,000 cups in three days.

    Yet existing international stores are feeling the same demand pressures as domestic sites. Overseas same-store GMV declined 15.1 per cent during the quarter, steepening from a 12 per cent drop in the first three months of the year.

    Investors will watch whether the pace of franchise buybacks can stabilize network revenue before international same-store sales deteriorate further in the third quarter.

  • Chagee Second Quarter Profit Jumps to $68.5 Million as Overseas Sales Surge

    Chagee Second Quarter Profit Jumps to $68.5 Million as Overseas Sales Surge

    Chagee posted a net income of RMB464.8 million ($68.5 million) for the second quarter, up from RMB77.2 million a year earlier as international expansion lifted returns.

    Net margin climbed to 13.6 per cent from 2.3 per cent in the prior-year period. Total revenue rose 2.5 per cent to RMB3.4 billion ($503.3 million) for the three months ended June 30, supported by an 8.5 per cent increase in store count to 7,639 locations worldwide.

    Overseas Momentum Offsets Domestic Softness

    Operating income surged 387.6 per cent to RMB524.7 million after the chain cut operating expenses by 10 per cent. While gross merchandise value dropped 9 per cent in Greater China, sales across eight international markets jumped 114.3 per cent.

    Seoul provided an early spark for that overseas push. Three teahouses in the South Korean capital sold over 16,000 drinks during their first three days, driven by more than 46,000 mobile app downloads recorded ahead of the launch.

    The divergence between domestic and overseas performance reflects the intense discounting battle among premium tea brands inside mainland China. Rivals such as Nayuki and Heytea have faced margin erosion at home, prompting operators to look abroad where pricing power remains intact and consumer demand for Chinese milk tea formats is expanding rapidly.

    Member Retention and Sales Outlook

    Loyalty membership reached 257 million registered users by the end of June. Repurchase rates among active loyalty users held above 43 per cent during the period.

    Management reported that same-store sales declines moderated in July, with comps projected to swing into positive territory in August.

  • Chagees Expansion Spree Boosts Revenue but Dents Profits: Inside the Chinese Tea Giants Strategy

    Chagees Expansion Spree Boosts Revenue but Dents Profits: Inside the Chinese Tea Giants Strategy

    Chagee, the acclaimed Chinese tea chain, has experienced yet another boost in revenues, despite the ongoing expansion of its stores seeming to take a toll on its profit margins.

    Currently, Chagee owns a staggering 7531 teahouses, located primarily in Greater China, but also expanding internationally. Ending its first fiscal quarter of the year on a high note, Chagee reported revenues of RMB3.54 billion (US$514.1 million), indicating a rise from RMB3.39 billion during the same quarter in the previous year. Nonetheless, despite the hike in revenues, the company faced a 33.9 per cent dip in profits during the same period.

    Teahouse Business Dynamics

    Franchise-owned teahouses form the core of Chagee’s business model, contributing to a significant 77.4 per cent of the total revenue, while the remaining revenue comes from teahouses directly owned by the company.

    Although the Greater China region constitutes a whopping 95 per cent of Chagee’s business operations, by the end of the quarter, Chagee had marked its presence in seven additional countries. The most recent expansions saw Chagee breaking into markets in the United States, Vietnam, and the Philippines.

    Chagee’s Vision for the Future

    Founder and CEO of Chagee, Zhang Junjie, shared his view for the company’s future with investors. He expressed his commitment to focus on operational details, emphasizing that these granular aspects hold significant value to their consumers. He noted that the company’s ability to weather various business cycles is directly tied to genuine consumer recognition, and this forms the cornerstone of their objective for the current year – to perfect every single consumer touchpoint.

    Zhang Junjie expressed his confidence that Chagee is entering a phase of mature, steady, and sustainable growth. He ended his remarks by stating his assurance in every step the company is undertaking towards the future.

    Questions & Answers

    What is the revenue of Chagee for the first fiscal quarter of the year?
    Chagee reported revenues of RMB3.54 billion (US$514.1 million) for the first fiscal quarter of the year.

    What percentage of Chagee’s total revenue comes from franchised teahouses?
    Franchise-owned teahouses contribute to 77.4 per cent of Chagee’s total revenue.

    What is the major goal of Chagee for the current year?
    Chagee’s major goal for the current year is to perfect every single consumer touchpoint, according to founder and CEO Zhang Junjie.

  • Chagee Brews Up Asia-Pacific Expansion: Chinese Milk Tea Giant to Debut in Seoul

    Chagee Brews Up Asia-Pacific Expansion: Chinese Milk Tea Giant to Debut in Seoul

    The popular Chinese milk tea franchise, Chagee, will be making its first appearance in South Korea during this quarter. Three branches of the chain will be opened concurrently in the districts of Gangnam, Yongsan, and Sinchon in Seoul. This move is part of Chagee’s overarching strategy to increase its presence in the Asia-Pacific market.

    Chagee has reported a surge in interest from South Korean consumers ahead of the opening. The company is confident that it will introduce a unique, premium tea experience that is fresh and exciting.

    The Gangnam location will serve as the flagship store for Chagee. The store’s exterior is planned to feature arched greenery against a semi-transparent glass façade. In the center of this design, there will be an oversized, signature cup. Chagee’s design aims to create an illusion of walking into an urban forest, embodying its ‘Modern Tea House’ concept.

    The Yongsan and Sinchon branches will also leave their mark with graphic displays that are customized to their specific locations.

    As a way to engage customers before the official opening, Chagee is launching a QR code-based campaign. Customers who visit the store, scan the QR code displayed on the exterior, and successfully complete a short quiz will be rewarded with a 50% discount coupon.

    Questions & Answers

    What is the overall expansion strategy of Chagee?
    Chagee is looking to increase its presence in the Asia-Pacific market, starting with the opening of three stores in Seoul, South Korea.

    What unique feature will the Gangnam store have?
    The Gangnam store, serving as the flagship location, will have an exterior design featuring arch-shaped greenery against a semi-transparent glass façade, with a giant signature cup in the center. This design is meant to represent the company’s ‘Modern Tea House’ concept.

    How is Chagee engaging customers ahead of its store openings in South Korea?
    Chagee is encouraging customer engagement through a QR code-based campaign. Visitors who scan the QR code on the store’s exterior display and complete a short quiz will receive a 50% discount coupon.

  • Chagee Debuts First Thai Flagship Store at IconSiam Featuring Exclusive Drinks & Merchandise

    Chagee Debuts First Thai Flagship Store at IconSiam Featuring Exclusive Drinks & Merchandise

    Chinese tea chain, Chagee, has expanded its presence in Thailand with the launch of its flagship store at IconSiam. This addition increases the brand’s store count in the country to a total of 26 outlets.

    The newly opened store, comfortably situated on the G Floor, Veranda Zone of the Bangkok shopping complex, is designed as a destination-style outlet. It also features an exclusive beverage, Ceylon Black Milk Tea, that is unique to this specific location.

    Store Design and Special Features

    The IconSiam store incorporates a mezzanine level, which significantly increases the seating capacity beyond what is available on the ground floor. The interior design is characterized by contemporary elements and warm-toned materials, complemented by a subdued color scheme. The exterior of the store is marked by an intricate metal-chain installation referred to as the “Golden Chain.”

    Intriguingly, the interior of the store also features a large mural. This piece of art, created in collaboration with Bangkok-based artist Pomme Chan, visually narrates the journey of tea across different regions and cultures. It includes references to trade routes, depictions of everyday life, and several Thai visual motifs.

    Additionally, this location offers exclusive merchandise. Among the items available are a Mini Vacuum Cup and a Tumbler Cup, both presented in a striking Starry Red finish.

    Expanding Presence in Southeast Asia

    The opening of this flagship store is a strategic move in Chagee’s plans to hasten its expansion across Southeast Asia. In the previous year, the tea chain broke new ground by opening its first pet-friendly outlet in the region. This innovative concept store is located in Eastwood City, Manila, Philippines.

    Questions & Answers

    What is unique about the new Chagee store in IconSiam, Thailand?
    The new store introduces an exclusive beverage, Ceylon Black Milk Tea, and also features a large mural created in collaboration with a Bangkok-based artist. Additionally, it offers unique merchandise like the Mini Vacuum Cup and Tumbler Cup in a Starry Red finish.

    What design elements are noteworthy in the new Chagee store?
    The store features a contemporary design with warm-toned materials and a muted color palette. It also has a mezzanine level for extra seating capacity and a metal-chain installation, dubbed the “Golden Chain,” on its exterior.

    How does the opening of a new store in Thailand align with Chagee’s business strategy?
    The opening of the new store in Thailand is in line with Chagee’s plan to accelerate its expansion in Southeast Asia. Last year, the brand unveiled its first pet-friendly store in the region, further showcasing its innovative approach to expansion.

  • Chagee Brews a Unique Blend: First Pet-Friendly Tea Store Launches in Southeast Asia

    Chagee Brews a Unique Blend: First Pet-Friendly Tea Store Launches in Southeast Asia

    Chagee, a Chinese tea chain, has broadened its horizons with the unveiling of its inaugural pet-friendly store in Eastwood City, Manila, in the Philippines. This ground-breaking concept in Southeast Asia has been designed to appeal to both pet owners and their beloved fluffy friends.

    Embracing Pet-Friendly Experiences

    The novel store offers an alfresco seating arrangement, complete with weather-resistant benches. The floor has been designed to be non-slip to ensure a pet-friendly environment. The store is also equipped with air purifiers and incorporates various safety-oriented aspects to cater to pets. Notably, the entrance is marked by a rooftop cat fixture and a dog sculpture, signifying the store’s pet-loving ethos.

    Additionally, pets are welcomed by the provision of free water served in specially designated bowls. The store also takes into consideration the tea lovers’ needs. An encased tea bar with transparent glass panels allows customers to observe their drinks being prepared while keeping the tea safe from pet fur and dander.

    The store also prioritizes cleanliness and hygiene. It boasts a cleaning station equipped with wet wipes, lint rollers, and trash bags. An inside handwashing station is also available to further promote sanitary practices.

    Creating Community-Oriented Spaces

    According to Christopher Tiong, the General Manager of Chagee Philippines, the launch of this new concept aligns perfectly with the ongoing surge in pet ownership. The initiative mirrors the company’s ongoing effort to create more community-oriented spaces.

    “We have always used our tea to bring people together, and the bonds we share with our pets are equally special”, Tiong said. “With this innovative store, we aim to merge tea culture and pet companionship in a warm, welcoming space that everybody can enjoy.”

    Chagee sets itself apart through its distinct luxury-leaning, minimalist brand identity. The chain is renowned for its commitment to using real tea leaves, fresh milk, and refraining from the use of any artificial sweeteners.

    Questions & Answers

    What is Chagee’s pet-friendly store concept?
    Chagee’s pet-friendly store concept is a novel space designed to cater to both pet owners and their pets. It offers alfresco seating, non-slip flooring, air purifiers, and safety-focused features. Pets are provided with free water and there is an enclosed tea bar for customers.

    Where is Chagee’s first pet-friendly store located?
    Chagee’s first pet-friendly store is located in Eastwood City, Manila, Philippines.

    What differentiates Chagee from other tea chains?
    Chagee differentiates itself by using real tea leaves and fresh milk in their drinks while avoiding artificial sweeteners. Its brand identity is minimalist and leans towards luxury.

  • Chagee Holdings Stands Firm On Premium Pricing Amid Falling Sales And Rising Competition

    Chagee Holdings Stands Firm On Premium Pricing Amid Falling Sales And Rising Competition

    Chinese beverage company Chagee Holdings is maintaining its focus on premium products, even in the face of falling sales and profits as customers turn to more affordable competitors. The company’s co-founder, Shang Xiangmin, stated in a recent interview, “We haven’t been fully engaged in the price wars. Price wars may be a way to compete but we want to stick to our long-term strategy to build a premium brand.”

    Unchanged Pricing Strategy Amidst Competition

    Despite the growing competition from domestic companies like Luckin Coffee and Mixue Group, who are offering subsidized, deeply discounted beverages, Chagee Holdings remains firm on its pricing strategy. These competitors have teamed up with China’s tech giants to sell drinks at a fraction of Chagee’s price.

    Chagee’s flagship store in Hong Kong is experimenting with a new selection of drinks made from premium Chinese tea leaves. These drinks are brewed in-store by specialists and are sold at prices that are on par with single-origin coffee sold at Starbucks Reserve outlets in the city, ranging from HKD40 to HKD50 (US$5.2-6.4).

    Second Quarter Sales and Future Outlook

    The company’s adherence to its pricing strategy has seen second-quarter sales growth slow to 10%, down from 35% in the previous period. Adjusted operating income has also dropped by 10%, compared to the double-digit increases seen in the first quarter. This weak performance has wiped out nearly a quarter of its market value. Despite this, the company remains optimistic and is not deterred by the decrease in competitiveness. Chagee has decided to follow a development path similar to that of American coffee giant, Starbucks.

    “We’ve always wanted to go down the same path to take tea further,” said Shang, comparing Chagee’s ambitions to those of Starbucks.

    Expansion Plans

    Chagee opened its first U.S. store in Los Angeles in May, following its debut on the Nasdaq. The company operates more than 200 international outlets as part of its network of over 7,000 stores. It reported a 70% jump in overseas sales in the second quarter, with Southeast Asia being a key target for expansion.

    Questions & Answers

    What is Chagee Holdings’ strategy in the face of competition?
    Despite falling sales and profits, Chagee Holdings is maintaining its focus on premium products and has not engaged in price wars with its competitors.

    What are some of the offerings at Chagee’s flagship store in Hong Kong?
    The flagship store in Hong Kong offers drinks made from premium Chinese tea leaves, brewed in-store by specialists, and priced similarly to single-origin coffee at Starbucks Reserve outlets.

    What are Chagee’s future plans for expansion?
    Chagee plans to follow a development path similar to that of Starbucks. The company recently opened its first U.S. store in Los Angeles and is targeting Southeast Asia for further expansion.

  • Chagee Expands In Southeast Asia With Two Key Flagships In Kuala Lumpur

    Chagee Expands In Southeast Asia With Two Key Flagships In Kuala Lumpur

    Chagee, a leading Chinese milk tea company, is increasing its global presence with the launch of a new flagship store in Malaysia.

    Location and offerings

    The newly established Chagee Wolo KL Global Flagship is strategically situated at the busy intersection of Bukit Bintang, one of the most popular and frequented locations in Kuala Lumpur. The store, spread over two levels, offers an array of exclusive beverages that have been specifically designed to cater to the tastes of the Malaysian market.

    Expansion plans

    This latest venture is accompanied by the inauguration of another significant outlet, the Chagee Mid Valley KL Flagship, located in one of the city’s most active commercial centers. These new outlets emphasize the brand’s goal to reinforce its standing in Southeast Asia.

    Recent openings

    These openings in Malaysia come on the heels of Chagee’s recent unveiling of its biggest flagship store in Hong Kong. This two-level store, covering an area of 11,000 square feet, debuted earlier this month.

    Questions & Answers

    What is the strategy behind the location of the new Chagee Wolo KL Global Flagship?
    The store is strategically located at the busy intersection of Bukit Bintang, one of the most popular and high-traffic areas in Kuala Lumpur, to attract maximum customers.

    What unique offerings does the new Chagee store in Malaysia provide?
    The store offers an array of exclusive beverages that have been specifically designed to cater to the tastes of the Malaysian market.

    What are Chagee’s expansion plans in Southeast Asia?
    The opening of the new outlets in Kuala Lumpur underscores Chagee’s ambition to strengthen its presence in Southeast Asia.

  • Chagee Unveils World’s Largest Flagship Store In Hong Kong, Reinforces Commitment To Authentic Tea Culture

    Chagee Unveils World’s Largest Flagship Store In Hong Kong, Reinforces Commitment To Authentic Tea Culture

    Chagee, a popular Chinese tea chain, has recently launched its biggest global flagship store on Lee Tung Street in Wan Chai. This marks the seventh establishment for the brand in Hong Kong.

    Spacious and Multifunctional Flagship Store

    The new flagship store boasts an impressive 11,000 square feet of space, spread over two levels. The innovative double-storey design of the store blends retail shopping with cultural and social spaces, positioning it as a hub for both business and culture.

    A Unique Tea Experience

    Chagee stands out in the tea market through its luxury-leaning, minimalist brand identity. The brand is recognized for its commitment to using real tea leaves, fresh milk, and foregoing artificial sweeteners in its products. Their menu offers a contemporary spin on traditional teas, featuring such unique offerings as cream-topped Oolong tea.

    Confidence in Future Growth

    Rex Ho, General Manager for Hong Kong and Macau, expressed a strong belief in the brand’s potential for growth within the Hong Kong market. He stated, “We are optimistic, and we see Hong Kong as a platform for international cultural exchange. This city can help Chagee share the beauty of tea culture with a global audience.”

    With this belief in mind, the decision was taken to establish the world’s largest Chagee store in Hong Kong. Ho affirmed that the company will continue to invest resources to support the evolution and innovation of tea culture in the area.

    Chagee has shown considerable growth since it first entered the Hong Kong market last year. After expanding to seven stores in the city, the brand has plans to open at least 10 more outlets to accelerate its local expansion.

    Global Presence

    On a global scale, Chagee has a strong presence with over 7,000 stores spread across various markets including China, Malaysia, Singapore, Thailand, the Philippines, and the United States.

    Questions & Answers

    What sets Chagee apart from other tea chains?
    Chagee differentiates itself through a minimalist, luxury-leaning brand identity and a commitment to using real tea leaves, fresh milk, and no artificial sweeteners in its products.

    Where is Chagee’s largest global flagship store located?
    The largest Chagee store worldwide is located on Lee Tung Street in Wan Chai, Hong Kong.

    What are Chagee’s future plans in Hong Kong?
    Chagee plans to strengthen its presence in Hong Kong by opening at least 10 more outlets in the city as part of its local expansion efforts.

  • Chagee’s Revenue Soars Amid Expansion, Despite Significant Profit Dip

    Chagee’s Revenue Soars Amid Expansion, Despite Significant Profit Dip

    The second quarter of the financial year saw Chinese milk tea chain Chagee experiencing a double-digit increase in revenue, largely due to its network expansion. However, this growth was accompanied by a notable drop in profit.

    Financial Highlights

    Chagee, which is listed on Nasdaq, recorded a 10.5 per cent rise in net revenues to RMB3.331 billion (US$465.1 million) for the quarter ending on June 30. The company’s teahouse network witnessed substantial growth of 40 per cent, reaching 7038 locations.

    The total gross merchandise value (GMV) also saw an increase, rising by 15.5 per cent to RMB8.103.1 billion. The GMV in overseas markets experienced a significant surge of 77 per cent. However, the same-store GMV witnessed a downturn, falling by 23 per cent following a 38 per cent growth in the same period last year.

    Chagee’s GAAP net income saw a steep decrease of 87.7 per cent to RMB77.2 million. However, the non-GAAP net income, which factors in share-based compensation expenses amounting to RMB552.5 million, saw a marginal rise of 0.1 per cent to RMB629.8 million.

    Leadership Changes and Future Plans

    During the same quarter, Chagee made key leadership appointments to boost its expansion capabilities in North America. These included the appointment of Emily Chang as the Chief Commercial Officer and Aaron Harris as the Chief Development Officer for the region.

    Company management is optimistic about its comprehensive international expansion strategy. This strategy is expected to set the company on a path of sustainable growth. There are proactive strategies already in place for key regions like Indonesia, Thailand, and North America. Additionally, the company has plans to venture into Japan and Korea in the coming year.

    Questions & Answers

    What changes were observed in Chagee’s revenue and profit in the second quarter?
    Chagee witnessed a double-digit rise in revenue, largely due to the expansion of its network. However, its profit saw a significant drop.

    What significant appointments were made by Chagee in the second quarter?
    Chagee appointed Emily Chang as the Chief Commercial Officer and Aaron Harris as the Chief Development Officer for the North American region.

    What are the company’s future expansion plans?
    Management has comprehensive international expansion strategies in place. There are plans for expansion in key regions including Indonesia, Thailand, and North America, and the company intends to enter the Japanese and Korean markets next year.

  • Chagee’s Return To Vietnam Spurs Renewed Criticism Amid Expansion Plans

    Chagee’s Return To Vietnam Spurs Renewed Criticism Amid Expansion Plans

    Despite facing an earlier boycott due to its utilization of a contentious ‘nine-dash line’ map in its mobile application, Chinese milk tea franchise Chagee has made a return to the Vietnamese market.

    New Store Opens

    Recently, Chagee set up shop in Tan Huong Ward, a location which was previously part of District 7 prior to the administrative reorganization implemented in Ho Chi Minh City on the first of July. In an effort to regain customer trust and loyalty, the company has been offering promotional discounts.

    In an official statement shared on its fanpage, Chagee expressed its commitment to its mission “Chagee Together!”. The company also outlined its goal to “bring a complete tea experience closer to Vietnamese customers”.

    Renewed Criticism

    Nevertheless, the company’s reintroduction into the Vietnamese market has provoked a renewed wave of public criticism. A number of Vietnamese consumers continue to be skeptical of Chagee due to the brand’s link to the unlawful maritime claim represented in its former mobile application.

    One Facebook user stated, “Vietnam has no shortage of great milk tea brands. We should be supporting local businesses.” Following this renewed backlash, Chagee has deactivated comments on its social media platforms.

    Expansion and Controversy

    Additionally, Chagee has developed a website catered to the Vietnamese market, showcasing a beverage menu with prices varying from approximately US$1.65 to $3.35. The company reportedly has plans for further expansion by setting up numerous stores throughout Ho Chi Minh City in the forthcoming period.

    Chagee, established in 2017 in Shanghai, has swiftly expanded throughout Southeast Asia. Earlier this month, it inaugurated its first Philippine outlet.

    Chagee’s original foray into Vietnam was marked by the opening of a flagship store located at the crossroads of Dong Khoi and Nguyen Thiep streets in downtown Ho Chi Minh City, an area formerly part of District 1, now known as Saigon Ward.

    However, this initial launch rapidly fell apart after internet users identified a map on the Chagee app that represented China’s controversial “nine-dash line”. After this revelation, the company deactivated its social media platforms without providing a public explanation.

    Questions & Answers

    Why did Chagee face an earlier boycott in Vietnam?
    Chagee faced a boycott due to the use of a controversial ‘nine-dash line’ map in its mobile application, representing China’s contentious maritime claim.

    How is Chagee handling the renewed criticism and backlash?
    Chagee has responded by disabling comments on its social media platforms to mitigate the negative feedback.

    What are Chagee’s plans for the Vietnamese market?
    Chagee has launched a website targeted at the Vietnamese market and is reportedly planning to establish multiple stores across Ho Chi Minh City.

  • Chagee: Chinese Tea Giant Set To Brew Success In The Philippine Market

    Chagee: Chinese Tea Giant Set To Brew Success In The Philippine Market

    Chagee: The Chinese Tea Brand Poised to Enter Philippine Market

    Chagee, a renowned Chinese tea brand, is poised to infiltrate the Philippine market. This expansion is earmarked for August, with three branches slated for unveiling in Metro Manila.

    The fresh outlets will be strategically located at notable locales such as SM North EDSA, Robinsons Galleria, and Venice Grand Canal Mall.

    A Modern Take on Traditional Tea

    Chagee has carved a niche for itself as a contemporary tea bar that fuses traditional Chinese tea-making techniques with an emphasis on natural ingredients.

    The brand’s signature concoctions are milk-based tea beverages, expertly brewed using whole tea leaves from a variety of plants including green, black, and oolong. These teas are free from artificial sweeteners or flavorings, underscoring the brand’s commitment to all-natural products.

    Chagee’s Global Footprint

    With its roots in Yunnan, China, Chagee has successfully extended its reach across Asia and beyond. The company presently boasts of over 6000 stores worldwide. Its international presence can be felt in a number of markets such as Malaysia, Thailand, Singapore, and the United States among others.

    Questions & Answers

    What is Chagee?
    Chagee is a Chinese tea brand that is recognized for infusing modern flavors with traditional Chinese tea-making methods.

    Where are the new Chagee outlets in the Philippines going to be located?
    The new Chagee outlets in the Philippines are planned to be located at SM North EDSA, Robinsons Galleria, and Venice Grand Canal Mall.

    What distinguishes Chagee’s tea beverages?
    Chagee’s signature tea beverages are milk-based and are brewed using whole tea leaves from a variety of plants such as green, black, and oolong. These teas are free from artificial sweeteners or flavorings.

  • Chagee sees double-digit revenue growth in first quarter

    Chagee sees double-digit revenue growth in first quarter

    Chagee, a renowned Chinese milk tea chain, has reported a significant increase in its net revenues for the first quarter of this year. The figure soared to RMB3.39 billion (US$467.5 million), marking a robust growth of 35.4 per cent compared to the equivalent period last year.

    Financial Highlights of the Quarter

    The first quarter of the fiscal year was marked by strong financial performance for Chagee. The company’s net income also grew considerably, rising 13.8 per cent to RMB677.3 million. Meanwhile, operating income has been notably up from RMB705.9 million to RMB820.2 million, indicating an impressive operating margin of 24.2 per cent.

    Nevertheless, the company had to bear an increase in operating costs, which surged by 42.8 per cent, amounting to RMB2.57 billion year-on-year.

    Expansion Efforts and Product Innovation

    Chagee’s expansion strategy took a leap forward as they inaugurated key stores in Malaysia and Singapore during this quarter. The successful launch was followed by the opening of new outlets in Indonesia and the US in the consecutive months of April and May.

    Staying true to its commitment to product innovation, Chagee continued the introduction of new products. They included a range of low-caffeine beverages, designed to cater to the preference of customers who enjoy their teas later in the day.

    Questions & Answers

    What was the percentage growth in Chagee’s net revenues for the first quarter compared to the same period last year?
    Chagee’s net revenues for the first quarter of this year grew by 35.4 per cent compared to the same period last year.

    What new markets did Chagee enter during this quarter?
    Chagee entered the Malaysian and Singaporean markets this quarter, followed by expansions into Indonesia and the US.

    What new product line did Chagee introduce recently?
    Chagee introduced a new line of low-caffeine beverages, allowing customers to enjoy their teas later in the day.