The food and beverage industry is a challenging one, but the closures of several beloved names in Singapore this year have been a painful reminder. Restaurant chains like Prive and dessert store Fluff Bakery made headlines this year when their closures were announced. Longtime Holland Village institution Wala Wala Caf\u00e9 Bar notified their fans about its closure in June, only to reverse the decision in August following a groundswell of support. This week, when the news broke that Gong Cha had shuttered all its outlets in Singapore, it was easy to assume that they were also caught up in the wave of closures.<\/p>\n\n\n\n
But as new information came to light, it appeared that the reason behind Gong Cha\u2019s closure was slightly different. It turns out that parent company Gong Cha Global had decided not to renew its current agreement with the incumbent master franchisee. Instead in a media statement, Gong Cha Global revealed that it had \u201ctemporarily shut\u201d Gong Cha in Singapore with plans to relaunch the brand in 2026 with new local franchisees.<\/p>\n\n\n\n
This isn\u2019t the first time Gong Cha in Singapore has \u201ctemporarily shut\u201d its outlets. That was in June 2017, following a change in ownership of the parent company.<\/p>\n\n\n\n
RTG Holdings, the original master franchisee of Gong Cha in Singapore, first brought in the Taiwanese bubble tea brand in 2009. Back then, the brand was owned by Royal Tea Taiwan Co. In 2016, franchisee Gong Cha Korea, supported by private equity firm Unison Capital, acquired its parent company, becoming the new owner of over 1,000 outlets in 20 countries.<\/p>\n\n\n\n
New ownership meant that RTG Holdings in Singapore had to renegotiate the terms of its master franchisee license. According to RTG director Rodney Tang, the new agreement was more restrictive, which led him to rebrand all of his 80 existing Gong Cha outlets to new brand LiHo.<\/p>\n\n\n\n
Subsequently, Gong Cha Korea relaunched the brand in Singapore, this time under new master franchisee Gong Cha Singapore, led by Kang Puay Seng, founder of local brand Mr Bean.<\/p>\n\n\n\n
Read Also: Gong Cha or LiHo; Llaollao or Yole. We Explain How They\u2019re Different<\/a><\/em><\/strong><\/p>\n\n\n\n In 2017, following the change in the parent company\u2019s ownership, it was the master franchisee\u2019s decision not to renew the Gong Cha license in Singapore.<\/p>\n\n\n\n This time around, it is possibly the change in the parent company\u2019s ownership that led to the decision not to renew the master franchisee license of Gong Cha Singapore.<\/p>\n\n\n\n In 2019, US private equity company TA Associates acquired Gong Cha from Unison Capital. Just three months later, the company would be sold to London-based GC Group Bidco, and would later be renamed Gong Cha Global in 2020.<\/p>\n\n\n\n In 2022, Gong Cha Global announced the hiring of new global CEO Paul Reynish. Reynish brought with him over 25 years of experience in franchise operations for brands including Dunkin\u2019, Subway, and Burger King. He also oversaw the rapid worldwide expansion of Five Guys International Restaurants, opening in 11 countries in three years. When Reynish became CEO, Gong Cha had almost 1,500 outlets across 19 markets.<\/p>\n\n\n\n Just one year later, Gong Cha opened 500 more outlets, and by 2024 had expanded into countries like France, Morocco, Honduras, Mauritius, and Saudi Arabia. It was in Riyadh in Saudi Arabia that Gong Cha opened it\u2019s second Gong Cha 2.0 store, following the success of the first outlet in Gangnam, South Korea.<\/p>\n\n\n\n As alluded to in the media statement put out by Gong Cha Global, the intention is to bring the Gong Cha 2.0 store concept, which is \u201ceven bolder, more innovative, and more exciting\u201d. The flexible store concept allows for different formats to suit all kinds of locations, from small kiosks of 100 square feet to flagship stores of 2,500 square feet.<\/p>\n\n\n\n Whether Gong Cha in Singapore is going to retain the master franchisee structure remains to be seen, as Gong Cha Global\u2019s franchise structure caters to both a single store franchise as well as a multi-unit development agreement.<\/p>\n\n\n\n The experience of the two master franchisees of Gong Cha in Singapore may be a valuable lesson for anyone looking to become a master franchisee themselves.<\/p>\n\n\n\n The volatile nature of the relationship with the parent company that led the brand to \u201ctemporarily shut\u201d not once but twice reflects the precarious nature of being a master franchisee, where years of investment and innovation could end abruptly.<\/p>\n\n\n\n But it is also important to note that not all master franchisee experiences are the same. Brands like McDonald\u2019s in Singapore transitioned to a master franchisee model in 2016 without much disruption to the business, even retaining the HanBaoBao company name. Guzman y Gomez opened its first international restaurant in 2013 in Singapore under a master franchisee model and now has 22 outlets. Cinnabon returned to Singapore in 2023 under a master franchisee model and has opened three outlets since.<\/p>\n\n\n\nHow Gong Cha Singapore\u2019s Closure In 2025 Differs From 2017<\/h3>\n\n\n\n
Why Choose To Be A Master Franchisee<\/h3>\n\n\n\n