CHAGEE targets prime sites to drive Asia-Pacific expansion

Morning tea routines are a key growth opportunity.

Securing high-profile locations remains the biggest hurdle for CHAGEE, but the Chinese tea chain’s headline-making launches are attracting landlords and partners, supporting its Asia-Pacific expansion.

“Our site selection criteria are significantly stricter than most beverage brands,” Eugene Lee, Asia-Pacific chief marketing officer at CHAGEE, told QSR Media. “Securing what we call ‘1,000% locations’—sites that combine strong visibility, accessibility, and sufficient space—is challenging.”

CHAGEE aims to deliver its brand through thoughtfully designed spaces, attentive service, and freshly made products. Its ‘third space’ concept demands bigger locations than typical tea chains.

Last year, the company expanded across Singapore, Malaysia, Thailand, Indonesia, and the Philippines, and as of December 2025, it was operating more than 7,338 tea houses globally.

Each opening features localised campaigns highlighting site-specific features, such as its first pet-friendly store in the Philippines.

This focus on craft and detail sets them apart from other tea chains, Lee said in an emailed reply to questions.

This year, CHAGEE plans to expand its footprint with high-quality stores in strategic locations and deepen engagement with customers through marketing, menu innovation, and digital platforms.

Lee said metrics such as transaction count and gross merchandise value remain important, but brand health is increasingly used to measure long-term loyalty.

In Singapore, more than 90% of transactions are through the mobile app, offering insights into customer behaviour.

Lee highlighted breakfast as a major growth opportunity. The chain hopes to shift some customers’ coffee rituals to tea, using its Teaspresso platform, which applies espresso-style techniques to extract concentrated tea essence.

“It creates a rich, energising yes experience that fits naturally into a morning routine,” he said, noting that education and trial are needed to boost this habit.

Automation also plays a role, enabling freshly brewed milk tea in as little as eight seconds, allowing store partners to focus on service rather than routine preparation. “The brands that win will be those that use technology not just to increase efficiency, but to create better human experiences,” Lee added.

Lee will share further insights at the QSR Media Conference & Awards 2026 at the Grand Copthorne Waterfront Hotel in Singapore on 24 March.