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Flash Coffee Reportedly Closes All Outlets in Singapore After Allegations of Workers’ Strike

Goh Yi Ling

2023-10-13 , 9:18 pm

If you need a coffee hit, the chances are you’ve tried Flash Coffee at some point in time.

It was known for having cheap coffee and lots of deals for those who are looking to save some bucks.

However, it appears that Flash Coffee is no longer operating in Singapore.

And it also seems to be entangled in some messy affairs with its workers going on “strike”.

Here is more on what happened to the coffee chain in Singapore.

Flash Coffee Closes Multiple Outlets in Singapore

Earlier this week, on 12 October 2023, a TikTok user by the moniker of @resonancereviews revealed on the popular social media platform that Flash Coffee is closed.

@resonancereviews Flash coffee are closed!? #flashcoffee #riot #delayed #momoneynowork #baristalife ♬ Oh no no no No – oppa

And not just one or two branches. The whole host of Flash Coffee branches in Singapore.

The official Flash Coffee website says it had a total of 11 outlets in Singapore, including at Changi Airport Terminal 3, Jurong Point, PLQ Mall and Guoco Tower.

In its heyday, Flash Coffee, which was launched in 2020 to quite a big success, had about 30 outlets across the island.

In the short form video, the TikTok user found it curious that the Flash Coffee outlet was closed so “early” during the daytime.

Doing some quick sleuthing work, the OP then found out that Google Maps listed most of the Flash Coffee outlets as “closed” or “temporarily closed”.

What could have caused this shock pull-out from Singapore?

Flash Coffee Workers Are Allegedly on “Strike”

While we ponder and speculate about why Flash Coffee made a surprise exit from Singapore, financial difficulties seem to be one of the main reasons.

In fact, some employees of the chain declared that they were “on strike”.

The outlet in question was at Jurong Point, as featured in the viral TikTok video, which has now garnered over 324K views.

The reason was not poor or harsh working conditions.

It was that the coffee chain had made “several late salary payouts”, which caused the workers to go “on strike”.

They wanted a “conducive work environment” and therefore made this silent protest.

Flash Coffee Responds, Saying Works Are Not “On Strike”

But the coffee outlet is not staying silent and allowing a mere notice to smear their good reputation.

A company representative of Flash Coffee spoke to the local news outlet Channel News Asia to clarify that their workers are “not on strike”.

They said the chain ceased operations in all 11 stores, and their baristas were “not required to report to work”.

The coffee chain also said that it had ceased operations on 12 October 2023.

It still has more than 100 stores globally, excluding the stores in Singapore. Flash Coffee has other outlets in Indonesia, Thailand, Hong Kong and South Korea.

So, what is the real story? It sounds like a version of he-said-she-said.

Flash Coffee Says That It Will Help the Affected Workers

If there is any silver lining in this closure, it is that there are many baristas on the market now.

So, if you run a coffee chain and are short-staffed, now is the prime time to pick up some talent in the job market!

Apart from baristas independently finding new jobs, Flash Coffee is apparently going the extra mile to help their former employees.

Speaking to Channel News Asia, a representative of Flash Coffee revealed that it is “proactively assisting” the affected team members.

Some of the initiatives the coffee chain is doing include “actively trying to connect” their baristas with “opportunities in other coffee chains”.

Maybe these baristas could find a job with Starbucks or The Coffee Bean & Tea Leaf?

Flash Coffee also said that they care for the non-front-facing staff.

For example, the coffee chain is also trying to transfer their Singapore head office staff to “roles in other markets” or with the coffee chain’s “regional team”.

The Coffee Chain Seems to Have Been Facing Financial Challenges in General

But whatever the truth about why the baristas did not appear at the stop, it seems that the reason has to do with money.

Indeed, the Singapore-based coffee chain seems to be facing some monetary issues.

Yahoo! Finance reported that Flash Coffee was backed by Delivery SE and closed the Singapore outlets to “work towards profitability”.

Well, it is no secret that the food and beverage (F&B) industry is quite cutthroat.

With so many coffee chains around, including foreign chains such as Paik Coffee and Mega Coffee, it is difficult to survive.

Not to mention the other coffee alternatives in the form of Singapore’s booming bubble tea industry.

The foreign news outlet also mentioned that the global economic slowdown had hit hard in Southeast Asia, so businesses must reconfigure to stay afloat.

Channel News Asia also reported that the Accounting and Corporate Regulatory Authority (ACRA) portal indicated that the company was in voluntary liquidation.

More specifically, the status of the company was “in liquidation – creditors’ voluntary winding up”.

For those who are unaware, a creditors’ voluntary winding up occurs when a creditor applies to the court to have a company wound up because it has not paid its debts over a prolonged period.

However, it seems that Flash Coffee does not intend to be down and out for the long term.

After all, Yahoo! Finance reported that the coffee chain had just raised $50 million in May this year and is working towards its goal of reaching profitability in 2024.