Gong Cha\'s franchise story PDF

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Gong Cha's franchise story ...

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The movement of milk tea began to appear from the end of 2016, exploding in 2017 and so far despite being less vibrant, still capturing the hearts of the public. Even enjoying milk tea has gradually become a habit, a lifestyle of a part of young people. With that, the story of milk tea concession is also hotter than ever. Milk tea market - A vibrant market According to reports from Euromonitor, Vietnam milk tea market is worth 282 million USD in 2016, the growth rate is 20% per year. In 2018, the tea industry is expected to grow steadily at a rate of 5.7% per year and will continue to increase by 2020. A survey by Lozi recently announced that 53% of respondents surveyed drink milk tea at least once a week. If in the past, milk tea was mostly favored by students and students, nowadays, middle-aged and family groups ... often choose to buy this drink. The potential customer file of milk tea expands 15-34 years old, accounting for 30% of the population. A large, high-profit customer file makes milk tea business evaluated by F&B experts as a prominent business trend, after 6-12 months of capital recovery. What is "milk tea concession"? Franchising, also known as franchising, is a form of cooperation that allows you to use the brand's brand name or product brand. In the milk tea franchise in particular, in addition to complying with the provisions of the commitment, the franchisee will receive four main areas of business: -

Brand system Products / Services The secret of producing and processing products

Strategy, business model, management policy, consulting support, opening, controlling, advertising If the franchise business is smooth, good quality, the business must be trained in all production and processing processes so that product quality remains unchanged. At the same time, they must be the ones who understand the meaning of products, operation methods as well as training employees from the main brand. Gong Cha's franchise story Spending billions of dong to invest Gong Cha is a long-standing and famous milk tea brand in Taiwan. Around the world, this brand has developed in the form of franchise and up to now, Gong Cha brand has nearly

3,000 stores across 20 countries. Particularly in Vietnam, Gong Cha has appeared since 2014, with the first store located in Ho Tung Mau, District 1, HCMC. At that time, according to Mr. Nguyen Hoai Phuong, Director of Golden Trust Company, a franchise and management unit, Gong Cha chain operation in Vietnam, a number of milk tea shops appeared. by Ding Tea, Toco Toco, ... however, with a passion for food, like drinking milk tea, there is a chance to go and go so much, when enjoying Gong Cha's milk tea in Taiwan, Mr. Phuong noticed the taste. This milk tea is much more delicious and strange than the milk teas he used to drink in Vietnam. At that time, although he found himself unaware of the food and beverage business (F&B), Nguyen Hoai Phuong still wanted to bring Gong Cha milk tea to Vietnam. Mr. Phuong had a problem with Gong Cha and "luckily, I met the founder Gong Cha. After lunch and conversation, Gong Cha agreed. ” Under the mutual agreement, Golden Trust is the exclusive representative of Gong Cha in Vietnam. Mr. Phuong did not share the milk tea franchise fee but revealed it to be a small number. In return, Golden Trust received brands, formulas, materials, processes, operational standards, operations and training programs from Gong Cha to develop the system in Vietnam. In addition to franchising costs, Gong Cha Vietnam Chain has to spend money to invest in premises, decoration and equipment procurement. The average cost of opening milk tea shops in many places is about 4-6 billion VND. But according to Mr. Phuong, this number depends on the level of investment of the units, so it is very endless. As in Gong Cha, Mr. Phuong pays much attention to the convenience and comfort of customers. And Gong Cha often chooses the location of the ground which is not too noisy, spacious, convenient for entry and exit, parking space, and separate toilet area. Mr. Phuong also pays attention to the seating space so that he is comfortable and invests many cool air-conditioners. For investment in equipment, in addition to purchasing necessary items, Gong Cha also invested in ice making cabinets and water filters. Therefore, Gong Cha's investment costs may be higher than average. In the beginning, because milk tea was still unpopular, Gong Cha's shop worked moderately. But when the milk tea market exploded and the Gong Cha brand became more well-known in Vietnam, after about a year and a half, Gong Cha became profitable. Along with Gong Cha, a number of other tea shops such as Tien Huong, Ding Tea, etc. also recorded profits after more than 1 year of operation.

Especially careful when franchising At present, milk tea has become a familiar drink for many people, especially teenagers and offices. In the country, besides hundreds of Vietnamese milk tea brands such as Sunflower, Coco, Hot & Cold, Like, Alo Tea, Hebes ... and many spontaneous milk tea shops, convenience stores like Ministop, FamilyMart and supermarkets like Co.opmart, Aeon also sell milk tea. Even coffee shops like Phuc Long and Highland, The Coffee House also serves drinks that are loved by young people. In a bustling milk tea market, Gong Cha is still considered a big brand with a large and stable customer base. Although the Gong Cha store model requires large investments, from straws and plastic cups to be imported, it leads to Gong Cha net profit of only 10-15%, much lower than 50-60% of many places, but some investors have questioned the concession of Gong Cha from Golden Trust. According to Mr. Phuong's disclosure, there are 3 partners who receive Gong Cha franchise and nearly half of Gong Cha's stores are now franchised. Gong Cha Vietnam currently owns only about 50% of total stores. Mr. Phuong did not give details of franchise costs. But looking at Dingtea, permanent franchise fee is $ 20,000, while in Toco Toco about VND 160-300 million / store depending on location and for 3 years; As a big brand, Gong Cha's cost of franchising milk tea is definitely not lower. In fact, whether it is a self-opening or franchising store, Gong Cha Vietnam still regularly conducts inspections, to ensure that Gong Cha's standards are uniformly implemented at every store. Gong Cha has sanctions if the partner violates. One of Mr. Phuong's principles is that only if the partner violates the regulations on raw materials such as using unidentified materials, adding doses, ... will he be deprived of the license. In addition, before negotiating to concession, Mr. Phuong always had discussions to understand the business perspective of the partner. If it is the person who wants to earn money quickly and much from milk tea, Mr. Phuong will limit handshakes. Because according to Mr. Phuong, although business has to be targeted, but only in the field of food, if it is too important to take profit, it is very easy to lead the greed, will go to deceit and negligence in selling goods, service, reduce quality and harm to customers' health. Mr. Phuong does not deny, milk tea is a bad drink for those who need to abstain from sugar and sweet. Therefore, although no one is required, on Gong Cha's website there is more information about calories of each product, so that consumers have more advice and choices.

On this basis, it can be seen that Gong Cha's orientation is to focus on quality and service, which is the key to Gong Cha's success. Conclusion In the next year, investing in milk tea will always be profitable. However, with its position as a buyer of franchise stores, in today's fierce competition, apart from strategies in business operations, choosing a brand to franchise is also a big problem. Need to know which brand has potential in the market and its suitability for brand personality....