CoCo Fresh Tea & Juice dangles single-franchise tack to young entrepreneurs
The bubble tea chain is expanding its pool of operators by lowering the entry barrier.
International bubble tea brand CoCo Fresh Tea & Juice plans to expand its single-store franchising strategy to other Asian markets after its launch in Japan, banking on interest from young entrepreneurs.
Kody Wong, deputy general manager at CoCo Fresh Tea & Juice, said the strategy has been well-received in their western market operations.
“Single-store franchising offers greater flexibility and a lower entry barrier for potential partners to join CoCo,” he told QSR Media. “This approach allows a wider range of partners to become part of our well-established and strong brand.”
The bubble tea chain relaxed its multi-store franchisee policy after seeing a growing interest from entrepreneurs aged 35 and below, Wong said.
The launch of the single-store franchising strategy in Japan makes sense after their research found that the market outlook for the tapioca tea market has been steadily growing, he added.
“One of the biggest challenges in single-store franchising is building a strong supply chain, but we’ve already established that in Japan,” he said. “Having a warehouse there gives us a significant advantage.”
Wong expects a challenging 2025 amidst the global economic uncertainty and tough competition, which are both affecting business behaviour.
“It's crucial to balance the pros and cons between expansion and operational excellence, as this balance ultimately affects the sustainability of the brand and its market position,” he said. “CoCo, with its 28 years of industry experience, has managed to balance these aspects well.”
Wong said they have launched this strategy in select cities in China. They also plan to launch the single franchising strategy in some countries in Southeast Asia pending supply chain preparations.
“We are confident in our growth and sustainability across different markets,” he said, noting that CoCo targets double-digit growth in international markets this year.
“Aside from that, we are planning to launch our first outlet in the Middle East this year,” he added.
