Are you looking to start a business in the Food & Beverage (F&B) sector but is not sure where to start? Would you like to look for something which has a good reputation but is affordable, yet is fun to run?
Milk Tea Potential
The name Gong Cha might appeal to a lot of young people today. This is one name that has a lot of followers where it is popular for its milk tea beverages.
This brand has been around since 2006 where it originates from Taiwan. To date, Gong Cha’s outlets have already breached 1,500 across the world, making it one of the largest names in this sector.
Considering to Franchise Gong Cha
There really is no reason why you should not franchise Gong Cha. It is, after all, a very reputable name in the milk tea beverages industry. It stands strong among the competition against names like Tealive, Chatime and Boba Tea, to name a few.
Another reason why you should start this business is that you need not have to do much marketing as there is already a catchment of customers ready to buy your drinks. Franchise fees are among the lowest which starts at RM300,000.
What do our experts say?
One thing for sure, Gong Cha is a very established brand. It is ‘imported’ and that gives the brand a lot of mileage. If you run a Gong Cha outlet, there is a high chance of getting a long line of customers and that can bring a lot of profitability.
- Brand Reputation – Very good
- Initial Capital – High but is appropriate for a foreign brand.
- Return on Investment – Medium to High due to premium pricing.
- Location – Best to be in shopping malls. You can consider opening a stand-alone shop lots too.
- Customer Segment – Youngsters, working adults and shoppers.
The Final Word
Invest in Gong Cha if you are ready to spend. But you can almost be certain that you can get your ROI within the first year as long you have a good location.
It need not have to be high traffic but it has to be visible. Advertising and marketing will have a strong influence on your business.