Tea, culture, consistency: CHAGEE's strategy for long-term differentiation in the Philippines

CHAGEE’s entrance into the Philippines - a market now ranked as Southeast Asia’s second largest for milk tea - is unfolding as both a brand-building exercise and a strategic test of how far a craft-driven positioning can travel in a highly price-sensitive category. With five Metro Manila stores now open and more slated before year-end, the brand is using its early footprint to calibrate operations, deepen localisation, and define its long-term point of difference before accelerating expansion.

General manager Christopher “Sonny” Tiong (pictured, left) is steering the brand away from store-count commitments and toward operational depth. The first five outlets, he said, gave CHAGEE the foundation it needed to refine its operational model, strengthen its supply chain and formalise training across teams. Rather than naming a target for 2026, he said that “our priority is to scale in a way that ensures healthy and sustainable performance and a consistent CHAGEE experience for our customers”.

This approach sits in contrast with the rapid rollout seen in neighbouring markets such as Malaysia, signalling a more controlled expansion play in the Philippines - one that positions operational excellence as a form of competitive moat.

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Senior brand and marketing lead Natasha Panes Besquillo (pictured, right) confirmed the ambition is still national in scope, noting that more stores “definitely” planned for 2026. But the messaging is consistent: accessibility should not come at the expense of craftsmanship.

Calibrating premium for a price-conscious market

CHAGEE’s biggest strategic puzzle is balancing its tea-first ethos with the mass-market realities of Philippine milk tea consumption. Tiong acknowledged the tension plainly: “the milk tea category here is highly price-conscious, so we take care to balance quality with accessibility.”

Instead of chasing low-price volume, the brand is anchored on differentiation - stronger tea profiles, authenticity, and a noticeably elevated experience. Early data from its first three months suggests this is resonating, with Filipinos gravitating toward deeper and bolder flavours such as Da Hong Pao Milk Tea and Lapsang Souchong Black Milk Tea. Seasonal demand is also driving uptake of its Teaspresso Frappes, pointing to opportunities across both premium and refreshing segments.

The strict avoidance of artificial flavouring bases, artificial sweeteners, toppings, or sinkers further sets CHAGEE apart. This purist stance is rare in a market dominated by customisation, but the brand believes simplicity heightens the craft value.

Both leaders emphasise that localisation will be embedded in the organisation, not relegated to thematic marketing. Tiong sees it as central to long-term cultural relevance, explaining his intention to explore flavours that “resonate with Filipino preferences while staying true to our tea-first philosophy”. The team is also evaluating where local sourcing is feasible for ingredients and packaging, and looking at collaborations with Filipino creatives as a way to ground the brand’s heritage authentically.

CHAGEE’s launch campaign showcased this direction. Besquillo highlights Philippine-exclusive merchandise and a TVC featuring Luzon landmarks - a deliberate weaving of brand identity into local scenes. The eye-catching floating cup installation at the Venice Grand Canal Mall further established CHAGEE as a brand willing to push creativity in physical spaces.

An integrated, friction-light customer experience

Digital-offline synergy remains a core differentiator for CHAGEE. Tiong’s agenda for 2026 includes simplifying the app journey, speeding up peak-period fulfilment, and reconfiguring store layouts for smoother customer flow. He noted a goal of making the journey feel “warm, smooth and thoughtfully designed” - phrasing that signals a shift from typical fast-casual efficiency to a more hospitality-inspired framework.

On the digital front, CHAGEE’s app ties directly into store operations, displaying real-time production counts and wait times. This functionality is designed to address a recurring pain point in the milk tea category: unpredictability of queues and fulfilment.

Besquillo added that online engagement will increasingly complement store experiences, with quizzes, giveaways, and lifestyle-driven content planned to nurture a more participatory community.

Both Tiong and Besquillo described the Philippine team as more than 100 people strong, supported by a five-member marketing unit under former McDonald’s Philippines CMO Ollie Rabatan. Tiong underscores the operational priorities ahead: structured barista training, a reinforced supply chain capable of supporting future expansion, and deeper use of data analytics to guide product, inventory, and engagement decisions.

He framed these capabilities as prerequisites for sustainable growth: “Sustaining growth in a fast-moving market requires teams that are skilled, adaptable and customer-focused.”

A differentiation strategy rooted in craft and cultural storytelling

Long-term, CHAGEE is betting that craft, authentic tea culture, and consistent experience will outlast category fluctuations. Tiong believes the brand’s strengths lie in “authentic tea brewed with care, strong cultural storytelling and a consistent customer experience”. The ambition is to elevate Filipino consumers’ appreciation of tea - effectively redefining expectations in a market used to sweet, highly customisable drinks.

Besquillo echoed this, positioning CHAGEE as a modern tea house for a younger generation, combining stronger tea expression, minimalist recipes, premium design language, and lifestyle-led campaigns. She said the brand has “not done enough” on cultural storytelling in the Philippines this year, but hopes to “push harder on that next year”.

Early traction supports the strategy. The brand sold over 23,000 cups during its triple-store grand opening weekend and moved more than 1,000 plushies in five days during its Bes-tea merchandise drop - proof of strong cultural and emotional uptake among Filipino consumers.

CHAGEE is accelerating partnerships with platforms that influence discovery and daily routines. Its TikTok drink drop - following earlier collaborations with Grab - demonstrates how the brand plans to fuse social reach with product experience at scale. More drink drops and collaborations are planned throughout November, signalling a pipeline of always-on, cross-platform activations.

Looking ahead to 2026, the marketing agenda centres on increasing product visibility, introducing new beverages tailored to Filipino tastes, and deepening consumer appreciation for authentic tea.

Where many milk tea players lean into novelty and flavour trends, CHAGEE’s strategy in the Philippines is clearly built on longevity: heritage, craft, cultural texture, and operational precision. Both leaders articulate a vision of a brand that scales not by racing competitors, but by embedding itself into Filipino routines and cultural moments.

As Besquillo put it in one line: “Real tea, authentic flavours, and a fresh take on what modern tea should be.”

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