Flash Coffee ceases ops in SG, debunks claims SG staff on strike

Flash Coffee is winding up its business in Singapore. According to the company, it will be ceasing operations across 11 of its approximately 200 global stores in Singapore.

In a statement to MARKETING-INTERACTIVE, the company said the move was in line with its “unwavering commitment to build a profitable and sustainable business”. As such, it has decided to further consolidate future efforts and to double down on its most promising markets.

The statement added that most of the other markets have demonstrated “tremendous traction on top of a healthy foundation and show strong unit economics and future growth potential”, with some of the markets nearing EBITDA break-even in the coming months.

The company added that during the transition, the well-being and future of employees remain a priority, and that contrary to reports, its staff in Singapore are not on “strike”. “We ceased operations at our 11 stores and consequently, our baristas are not required to report to work,” the spokesperson said.

The spokesperson added that the recent operational changes do not impact the brand’s presence in Hong Kong.

“In fact, we are committed to further investing and expanding in this vibrant market,” the spokesperson added.

Employees in the Singapore head office staff have also been offered roles in other markets or with the regional team. Additionally, the company is also actively trying to connect its baristas with opportunities in other coffee chains.

“We remain firm in our mission to serve up high-quality coffee across Asia and likely some additional markets in the medium term, and stay committed to scaling our business sustainably in the long term,” said the spokesperson.

In May this year, Flash Coffee raised a total of US$50 million in its extended Series B funding round, and said the funding will help its growth across Singapore, Indonesia, Thailand, Hong Kong and South Korea, according to an article on Nikkei. In 2021, the company closed a US$15 million Series A funding.

The company also said Indonesia, which is its most mature market, will see expansion. The chain was started up by David Brunier, who was a CMO of foodpanda prior to starting up the brand in 2020 with ex-Bain member Sebastian Hannecker.

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