Chagee VS HeyTea | Which franchise opportunity is better
The global beverage landscape is constantly evolving, and one of the most significant trends we’ve witnessed in recent years is the surge in popularity of new-style tea brands originating from China. This trend has made its way to Malaysia, captivated the taste buds of Malaysians, and created a thriving market for these unique and flavorful tea experiences. Among the key players in this market are Chagee and HeyTea, two brands that have garnered significant attention and are now being considered as potential franchise opportunities. When considering Chagee VS HeyTea | Which franchise opportunity is better, aspiring entrepreneurs are faced with a crucial decision. This article delves into a comprehensive comparison of these two brands, focusing on their strengths, target audience, and franchise details, to help you make an informed decision.
The Rise of New-Style Tea in Malaysia
Malaysia’s beverage scene, traditionally dominated by local favorites like Teh Tarik and Milo, is undergoing a transformation. The influx of new-style tea brands from China, characterized by their rich flavors, innovative ingredients, and trendy presentations, has resonated strongly with Malaysian consumers. Brands like Chagee, which entered the Malaysian market in 2019, have quickly established a loyal following. More recently, HeyTea opened its first Malaysian outlet in the prestigious Exchange TRX shopping centre in Kuala Lumpur in 2024, demonstrating the growing demand for premium tea experiences.
Despite the presence of established players like Tealive and the budget-friendly Mixue, these new-style tea originators are finding a unique niche. Their focus on high-quality ingredients, unique flavor combinations, and a strong brand identity sets them apart, attracting a demographic seeking a premium and trend-forward beverage experience.
Chagee VS HeyTea: A Comparative Analysis
To better understand the differences and similarities between Chagee and HeyTea, let’s examine them through a comparative table:
| Metric | Chagee | HeyTea |
|---|---|---|
| Origin | China, Yunnan Province | China, Guangdong Province |
| Best Sellers | Premium Milk Tea with Fresh Fruits, Da Hong Pao Milk Tea, Osmanthus Longjing Milk Tea | Cheezo Tea, Multi-layered Bobo Tea, Seasonal Fruit Teas |
| Target Audience (Age) | 18-35 (Young Adults, Professionals) | 18-40 (Young Adults, Urban Consumers) |
| Related Metrics | Strong emphasis on tea origin, premium ingredients, traditional tea culture fusion. | Innovation in flavor combinations, cheese foam, seasonal trends, luxury brand positioning. |
What Makes Chagee Famous?
Chagee has carved a niche for itself by emphasizing the origin and quality of its tea leaves, particularly those from Yunnan Province. Their signature Da Hong Pao Milk Tea, made with premium oolong tea, has become a hallmark of the brand. They also feature a range of fruit-infused milk teas, blending traditional tea culture with contemporary flavors. Chagee’s commitment to using fresh ingredients and its focus on the artistry of tea preparation have contributed to its popularity.
What Makes HeyTea Famous?
HeyTea is renowned for its innovative approach to tea, particularly its “Cheezo Tea,” a unique blend of tea topped with a layer of cheese foam. This distinctive offering has captivated consumers and set HeyTea apart from its competitors. The brand also focuses on seasonal fruit teas and creative flavor combinations, appealing to a trend-conscious audience. HeyTea’s focus on high quality ingredients, and a luxury brand positioning has made it a highly desirable brand.
Owners of Chagee and HeyTea
- Chagee: The brand was founded by Mr. Ruan Min in 2017.
- HeyTea: The brand was founded by Mr. Nie Yunchen in 2012.
Chagee Franchise Cost
Currently the franchise opportunity in Malaysia is not available. You can refer to the requirements in China for reference:
| Franchise Store Type | Major Cities （Tier 1 Cities) | Medium Cities (Tier 2 Cities) | Small Cities (Tier 3 Cities) |
|---|---|---|---|
| Store Area | 80㎡ or 860 sqft | 60㎡ or 645 sqft | 30㎡ or 322sqft |
| CHAGEE Franchise Fees | |||
| Franchise Fee | Approx. RM 25,000 (CNY 38,800) | Approx. RM 25,000 (Based on 38,800 CNY) | Approx. RM 25,000 (Based on 38,800 CNY) |
| Deposit | Approx. RM 6,500 (CNY 10,000) | Approx. RM 6,500 (Based on 10,000 CNY) | Approx. RM 6,500 (Based on 10,000 CNY) |
| Subtotal | Approx. RM 31,500 | Approx. RM 31,500 | Approx. RM 31,500 |
| CHAGEE Basic Franchise Costs | |||
| Renovation Costs | Approx. RM 36,000 (CNY 56,000) | Approx. RM 23,000 (Based on 36,000 CNY) | Approx. RM 9,600 (Based on 15,000 CNY) |
| Equipment Costs | Approx. RM 51,500 (CNY 80,000) | Approx. RM 38,700 (Based on 60,000 CNY) | Approx. RM 5,800 (Based on 40,000 CNY) |
| Raw Material Costs | Approx. RM 12,900 (CNY 20,000) | Approx. RM 9,600 (Based on 15,000 CNY) | Approx. RM 6,500 (Based on 10,000 CNY) |
| Advertising & Opening Costs | Approx. RM 12,900 (CNY 20,000) | Approx. RM 11,600 (Based on 18,000 CNY) | Approx. RM 9,600 (Based on 15,000 CNY) |
| Subtotal | Approx. RM 113,300 | Approx. RM 83,900 | Approx. RM 51,500 |
| CHAGEE Operating Costs | |||
| Rental Fees | Approx. RM 7,000/month (Based on 10,800 CNY/month) | Approx. RM 4,900/month (Based on 7,600 CNY/month) | Approx. RM 2,300/month (Based on 3,600 CNY/month) |
| Labor Costs | Approx. RM 7,200/month (Based on 11,200 CNY/month) | Approx. RM 4,800/month (Based on 7,500 CNY/month) | Approx. RM 2,580/month (Based on 4,000 CNY/month) |
| Utilities & Miscellaneous | Approx. RM 1,600 (Based on 2,500 CNY) | Approx. RM 1,290 (Based on 2,000 CNY) | Approx. RM 1,160 (Based on 1,800 CNY) |
| Working Capital | Approx. RM 42,600 (Based on 66,000 CNY) | Approx. RM 29,200 (Based on 45,200 CNY) | Approx. RM 14,700 (Based on 22,800 CNY) |
| Subtotal | Approx. RM 70,800 | Approx. RM 45,300 | Approx. RM 22,800 |
| Total CHAGEE Franchise Investment | |||
| Total Investment | Approx. RM 215,600 | Approx. RM 160,700 | Approx. RM 105,800 |
Check more details at this page: https://franchise-info.my/chagee-franchise-info/
HeyTea Franchise Cost
Currently the franchise opportunity in Malaysia is not available. You can refer to the requirements in China for reference:
HeyTea, due to its premium brand positioning and recent expansion, has a higher entry point.
| Fee Type | Amount | Frequency/Notes |
|---|---|---|
| Franchise Fee | US$50,000 | Payable every 3 years |
| Initial Service Fee | US$26,400 | One-time payment |
| Monthly Royalty Fee | 3% of Revenue | Based on Actual Received Amount (before tax deductions) |
| Monthly Service Fee | 4% of Revenue | Based on Actual Received Amount (before tax) |
| Security Deposit | US$20,000 | Refundable upon contract termination |
Chagee VS HeyTea: Choosing the Right Franchise
Deciding between Chagee and HeyTea as a franchise opportunity depends on your investment capacity, target market preference, and business goals.
- Chagee: Offers a strong foundation in traditional tea culture with a modern twist, appealing to a broad audience. It is likely to have a more accessible franchise entry point.
- HeyTea: Targets a premium market with its innovative and trendy offerings. While the initial investment may be higher, the potential for high returns in urban areas with a strong demand for luxury brands is significant.
Both brands represent the exciting potential of the new-style tea market in Malaysia. Conduct thorough research, consider your financial capabilities, and align your choice with your long-term business vision. Ultimately, the best franchise is the one that aligns with your passion and business strategy.