Last Updated on 2017-06-11 , 4:18 pm

Everyone was shocked to wake up last Monday and read that all Gong Cha outlets will be changed to LiHo.

And I don’t blame you because it is pretty abrupt. The only thing that topped this is probably news of Five Stars closing down. 

But here’s one thing I’m sure you are curious about that’s not been given enough attention: what brought this change? What happened?

(Updated on 9 June 2017: Like a M. Night Shyamalan movie, Gong Cha is coming back!)

Here are 8 facts about LiHo you should know.

1. The Meaning Behind The Name 

I’m sure I’m not the only one wondering about the name. Folks at hardwarezone were saying they anyhow choose the name because of the rush to rebrand. 

But there’s a meaning to the name: the brand wanted to show that despite the differences in language and culture in multiracial Singapore, everyone knows LiHO 哩喝 (how are you? in Hokkien) and hope it can bond Singaporeans together and become a brand every Singaporean can relate to. 

2. The Change Was Brought About By “A Betrayal”

Rodney Tang, General Manager of RTG Holdings which brought Gong Cha to Singapore claimed that he did all this because of “a betrayal”.

According to The Straits Times, he was requested for an extension with Gong Cha’s Taiwanese parent company, Royal Tea Taiwan Co.

But it was only after he visited his Taiwanese partners that he realised the company was bought over by Gong Cha Korea.

He trusted his friends whom he has worked together with for years but they did not inform him about the change.

3. New Franchise T&C Will Affect RTG’s Other Businesses

He read through the new terms and clauses of the franchise agreement with Gong Cha Korea and found them to be much stricter, even possibly affecting their management of RTG’s other brands.

The company also manage the following brands in Singapore: NeNe Chicken, Paik’s Bibim, Paik’s Coffee, Bornga, Tino’s Pizza and Woo Ricebox. 

He had negotiated for more favourable terms, but by then, he also had the thought of growing a new home brand which will hopefully take root here in Singapore.

4. A “Business Suicidal” Decision

Gong Cha has been in Singapore for 8 years and it has garnered a significant following of fans here. To put it into numbers, the business has an annual revenue of $30 million, which doubtlessly will be affected by the change.

Add in the fact that you have notable competitors like KOI and it’ll seem like a business-suicidal decision to change. 

But Tang felt otherwise. 

5. Owner Wants LiHo to Become a Global Threat to Gong Cha

He felt that the brand has potential to grow. He wants to have Singaporeans drink tea made the Singaporean way. 

Given the positive reviews given by media outlets in Singapore, that might just be true.

And the potential isn’t just about the brand in Singapore, but the potential to enter markets like Hong Kong, Korea, Mainland China, even US and Canada.

He wants LiHo to step into the global stage and fight with Gong Cha. 

6. Guess How Much The Change Cost?

Given how everything changed overnight, you’ll be wondering how much it cost to get it all done within such a short period of time.

The entire rollout costs a whopping $1 million. 

7. Not Just a Change in Name, But Everything Else As Well

For hardcore Gong Cha fans who wish that the change is superficial only and won’t affect the drinks, you’ll be disappointed. 

They’ve changed suppliers for their tea, raw ingredients and even the way they make it. 

8. There’s Still Classic Drinks on the Menu, Just Don’t Expect Them to Taste The Same

The new brand will carry classics like Earl Grey Milk Tea with 3M, and similar drinks like LiHo’s Busy Bee Green Tea (Gong Cha’s Honey Green Tea) and LiHo’s Fresh Lemon Juice with Golden Ai Yu (Gong Cha’s Lemon Juice with Ai Yu Jelly).

Just be prepared that they won’t taste the same. However, online reviews have shown that the new drinks are an improved version of the older ones, so why not give it a shot, right?

8. Selected LiHo Stalls Have USB and Charging Points to Charge Your Phone

Okay, this is trivial but FREE CHARGING! According to a report on Channel News Asia, selected stores will be outfitted with USB and power points for customers to charge their mobile while waiting for drinks.

Let us know if you spot any, will you?

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Feature Image: straitstimes.com

This article was first published on goodyfeed.com