BANGKOK — Thai bubble tea franchiser ChaKaimuk.com is shifting its focus to aggressive international expansion, primarily across the Southeast Asian Nations, as an intense domestic price war erodes profitability in Thailand.
The company, which currently operates over 3,000 branches domestically, plans to add 1,000 new international branches over the next three to five years to sustain growth, according to Somchai Charoenthangeakwong, founder of parent company TEA Corporation Co., Ltd.
Intensifying Competition: Charoenthangeakwong expects competition in Thailand’s bubble tea market to peak in 2025. Franchise fees and beverage prices have reportedly fallen to a low of approximately 19 baht ($0.52) per cup, leading to a challenging environment for domestic expansion and an increase in investor hesitation.
ASEAN Focus: To counter the domestic saturation and price pressure, ChaKaimuk.com is pivoting to overseas markets where it sees growing demand from both potential franchise partners and ingredient distributors. The company currently has distributors in countries like Cambodia and franchise locations in Myanmar, Laos, and Indonesia.
Value and Adaptability: While expanding globally, the company is also implementing strategies to enhance value and attract investors. New services for franchisees include free shipping on ingredient orders and complimentary supplies like menu boards and aprons. For consumers, the company is maintaining stable drink prices while increasing per-cup value through more topping options.
Charoenthangeakwong emphasized the company’s history of rapid adaptation, citing its shift to online franchisee training, multi-channel ordering, and the introduction of low-sugar menus during the COVID-19 pandemic as examples of its key success factors.
Infrastructure and Cost Management
The company is also addressing operational challenges and preparing for future growth:
Sourcing and Costs: ChaKaimuk.com plans to manage rising raw material costs, particularly for green tea, by diversifying sourcing and balancing overall expenses to maintain stable pricing for its products.
Factory Expansion: To support its planned domestic and international expansion, the company intends to invest in infrastructure, including new warehouses and an expansion of its factory in the Sukhaphiban 5 area over the next five years.
Menu Development: The company is accelerating its menu development cycle, moving away from quarterly releases to launch new products immediately as consumer trends emerge.
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