Everything you need to know about Gong cha's new microstore format
The brand plans to have 15 to 20 opened by next year.
Gong cha’s new microstore format was something the brand has been exploring for quite some time now after they noticed that though their outlets are increasing, openings have started to slow down, Lili Shi, Company Director at Gong cha Australia told QSR Media.
With 154 outlets in Australia alone, they have been asking themselves, how many more outlets can we have?
“Costs are increasing all the time. Shop fitting costs, as we all know, its costing so much more now to put a store up. Post-COVID we realise our store numbers are increasing but slowing down. In 2022 we opened 29 stores. This year it was 17 stores. So there is still a high demand. We don’t want to slow down. But what’s the other way is instead of putting up a huge investment for new stores, we’ve come up with an innovative business model and tried to have this new format,” Lili said.
The microstore format is about half the size of a traditional Gong cha outlet. It will also have a more streamlined menu. This means having just two base teas and a choice of 15 to 20 different drink products and sinkers.
“It’s the golden 80/20 rule, where 80% of our sales are made by that 20% of products so it was a no-brainer which products to choose to put in these busy urban city locations,” Lili said.
These microstores can be manned by one person so the manpower cost to operate is lower. Since it is just around 15 square metres, it will also mean lower rent.
Gong cha will target high footfall areas which a traditional Gong cha outlet may not fit like petrol stations, train stations, and high thoroughfare shopping centres. The first one, Lili shared, will be in the newly revamped Wynyard railway station