S’pore Bubble Tea Chain Looking for People to Buy Over the Business After Announcing Its Closure

By
George Yang
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Do you love bubble tea and fruit tea so much that you wanted to own them?

But you didn’t want to start from scratch because the market too saturated, just like days in the early 2000s when you can find a bubble tea shop in every corner.

Then here’s your chance.

S’pore Bubble Tea Chain Looking for People to Buy Over the Business After Announcing Its Closure

Teafolia, a bubble tea chain that’s also well-known for its fruit teas that use Four Seasons Tea from Taiwan, Royal Ceylon from Sri Lanka, or Green Tea to pair with fruits, has just announced earlier this month that they’re closing down…forever.

So far, it seems like it’s the first bubble tea chain in Singapore to have folded.

So far.

According to its announcement, it was due to the “current economic situation”.

The chain had two outlets in Singapore: one in Bedok Mall and the other in Northpoint City.

In fact, it was going to open a new outlet in Orchard:

Image: Facebook

But unlike other bubble tea chains that have tagged along with other F&B eateries to sell their drinks, the chain didn’t do so.

A few days after announcing its closure, they’re offering to sell the business:

This includes their recipes, brand, store and equipment.

In other words, it’s a business takeover.

But what is that?

What is a Business Takeover

Even before COVID-19 occurred, businesses have been on sale everywhere in Singapore.

Rich fellows who had too much money to spend can shop in directories like businessforsale.sg, or even propertyguru, to take over a business.

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Some are plug and play—you just pay a specific amount and you’d be a CEO of a business.

For example, if you want to be an owner of a pet grooming / pet snack shop, you just need to pay $38,000. Usually, the ex-owner would provide details on the projected revenue. In this instance, the estimated revenue per year is $100,000 to $150,000, and the net profit per month is about $3,000 to $4,000.

You’d have everything ready—from the shop to the inventory and whatnot.

So this practice of selling a business is rather common. If a business can’t be sold, it’d be liquidated instead, whereby whatever the business owned would be auctioned off and used to pay creditors—or to the owner if there is no creditor.

But usually got creditors lah if not why need to sell.

However, if you’re new to the business world, then you shouldn’t dabble in this Shark Tank—the world of businesses is always a dog-eat-dog world, and unless you’ve done full due diligence, you might realise you’re buying a dying business filled with debts or one that has no customers at all.

And by the way, a check on businessforsale.sg shows that there has been quite a number of bubble tea shops on sale, too, with takeover fees of $100,000 to $300,000.

Needless to say, when Phase 2 starts, malls are going to look a lot more different.

Watch this for a complete summary of what REALLY happened to Qoo10, and why it's like a K-drama:

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George Yang
Email: [email protected]