Fiftea stems tide of competition

Food fads come and go. Of late, more and more Filipinos have been obsessing about milk tea, which is seen as a healthier alternative to coffee.

As a flurry of milk tea shops claiming to have originated from China and Taiwan had been sprouting all over the metropolis, it would be difficult for a particular store to stand out.

But for Fiftea of Taiwan, its fresh and all-natural ingredients would allow the brand to stay afloat in an ocean full of competition, says its Philippine franchise owner Si Chang.

Chang is from Taiwan and is a chemist by profession, but he has been doing business in the country for several years.

After his initial foray into car distribution, Chang found himself venturing into the food business via the company 999 Food & Beverage.

It was not easy, however, for Chang to convince Fiftea—which claims to be “Taiwan’s best milk tea brand,” with a store network of more than 500 in the island-nation alone—to allow him to put up outlets in the Philippines.

“They didn’t think the quality can be maintained outside of Taiwan,” Chang says of Fiftea’s Taiwanese owners, who opened the first branch in 1994.

It was a good thing that Fiftea expanded into mainland China—the owners realized that the demand overseas could be met while they kept the quality of its milk tea products.

Fiftea has a stringent set of requirements for a foreign franchisee. It required Chang, for instance, to recruit baristas who had already been working for at least two years before a Philippine store could be opened.

Experience is deemed necessary to produce Fiftea’s milk tea lineup, as only years of training would ensure that, in serving the products, the high quality and consistency of the Taiwanese brand are maintained. Chang notes that the baristas are carefully screened prior to hiring.

As for the ingredients, freshness is the key to keeping customers coming back for more, Chang shares. All tea leaves are imported from a reputable grower in China, giving the tea an authentic, distinct and natural taste. The creamer, meanwhile, comes from a Taiwanese manufacturer. He says Fiftea never uses powder nor chemicals to sharpen flavors.

In preparing the creamy milk tea, carefully brewing the tea leaves the traditional way generates the freshest flavors and nutrients, Chang explains. The water is boiled early on before the tea leaves are added to avoid overboiling, which causes bitterness. The brewing and mixing equipment are also immediately tidied so that the next cup would not be diluted.

But Chang laments that many Filipinos who are into the milk tea craze are not discriminating enough on their choices.

 
Many milk tea shops here use powdered, not brewed tea,” he claims. “I was surprised to see how people made tea here. That’s why we had wanted to [introduce] the proper, healthy way of drinking tea. You have to drink tea properly, otherwise you don’t get the benefits.”

Since opening the first branch in Makati City late last year, Fiftea has received favorable reception mainly from office workers employed in the vicinity.

 
Our regular customers are mostly aged 40 to 50. Many of them had been introduced to Fiftea by a friend. There’s also growing sales from younger people,” Chang notes.

 
Given the fresh ingredients and natural taste, Chang brags that for most of Fiftea’s first time drinkers, “once they have tasted it, they continue drinking” the milk tea.

It helps that Fiftea prices its products relatively lower than its competitors, ranging from P50 to P110 per serving. They now sell at least 200 cups of refreshing milk tea a day, he adds.

To attract more customers, Chang says that the company has been experimenting with flavors, with which Filipinos are more familiar.

 
We try to localize, but local ingredients have to undergo laboratory tests first. And new flavors should have a certain level of customer base,” he says, citing that mango is one well-loved ingredient that company may add to its lineup.

 
Fiftea currently has three company-owned stores in Makati—at Alphaland Makati Place, B.A. Lepanto Building and Cityland III. It will also set up a branch at SM City Davao. The company has plans to have 10 more before the year ends.

So far, Fiftea has been doing well, as the Cityland branch is expected to break even soon, Chang shares.

Fiftea is also open for franchising, which costs P250,000 within Metro Manila and P300,000 in the provinces.

“In the future, we want the Philippines to become Fiftea’s hub in Asean,” Chang says.