Saint's Alp Teahouse

When Maria Cheung needed to cool off strolling around the sweltering streets of Taipei in summertime, she would duck into one of the hundreds of teahouses that pepper the city and sip a refreshing ice tea. The imaginative "bubble teas," cool interior and rustic decor provided a welcome relief from the heat, noise and pollution of the streets. Before long she found herself heading for a teahouse to read the newspaper or a book, to have a snack, to meet with friends or all three. Then she had an idea: why not open a Taiwanese-style teahouse in Hong Kong? Mrs Cheung and her father, Cheung Chiu-hung, opened their first Saint's Alp Teahouse seven years ago in Mong Kok. Today, there are about 50 outlets in Hong Kong, Mainland China and the United States, and more on the way. "In Hong Kong, we now have 35 teahouses. Apart from outlets on busy streets, we also have counters in food courts and shopping malls," said Saint's Alp Director and General Manager Lawrence Chan (below). "We are focusing our research and development in Hong Kong and considering opening more outlets in the United States this year. If the response to our three teahouses in New York is anything to go by, the U.S. market offers great potential." Saint's Alp's unique concoctions of East-West "tea-shakes" have proven to be a hit among Hong Kong's teenagers. Its very popular "bubble tea" combines conventional teas with cocktail-like quencher recipes. "To further meet local demand, we added snacks and noodles to our menu; mainly popular dishes from Taiwan, Mainland China and Hong Kong," said Virginia Lee, manager of products and marketing for the company. "We now offer over 100 items on the menu, to which we introduce at least two new beverage and snack series each year to offer customers some exciting new tastes," Mr Chan added. The franchise grows When Mrs Cheung opened the first Saint's Alp in Mong Kok in 1994, the thought of franchising never entered into her mind. But with business at her second shop in Wanchai being equally brisk, her friends suggested she give it a try. "About one third of Saint's Alp's teahouses are now run by franchisees," Mr Chan said. "In order to assure quality products and services, we provide comprehensive support and assistance to help investors, from choosing the right store location to interior design, to preparing for the opening, to the day-to-day operations." The company requires franchisees and their staff attend a 15-day training course before opening their store. District managers then follow up to provide advice and help if needed on their operations with spot visits every two to three days. Ensuring franchisees maintain Saint's Alp's quality and theme, inspectors posing as customers regularly visit the teahouses. "Experience in the catering and retailing industries can be an advantage for franchisees in running the business, but the most important factor is that they are committed to making the business a success. Money alone is not enough to make it work," Mr Chan said. Meeting the challenges The success of bubble teashops in Hong Kong has spurred entrepreneurs to jump on the bandwagon and open similar operations. But Mr Chan said he views other teahouses as a challenge rather than a threat. "Market competition is inevitable on a level playing field. Our products are not patented, just like hamburgers, which are not exclusive to McDonald's " you can buy one at Wendy's or Burger King, even the supermarket, you name it," Mr Chan said. "But the one thing we are very clear about is that it is the "brand" that counts. To uphold our image, continuously adding value to our brand, we believe that is the key to maintaining our leadership in the market." Unlike its competitors, which blur between teahouse and restaurant, Saint's Alp is and always will be a "refuelling station" where people can sit back and recharge themselves with a refreshing beverage, quality service and a comfortable environment, he said. "In terms of the number of chain stores, we are without doubt the leader in the market. And as far as products are concerned, although some products sold by other teahouses or restaurants are similar, we are confident customers prefer ours," he said.