The technology-focused coffee chain is honing its focus on operations in Indonesia and Thailand as part of a bid to achieve group-level profitability in 2024
A Flash Coffee store at Orchard Gateway, Singapore | Photo credit: Flash Coffee
Flash Coffee has closed its 11 remaining stores in Singapore to curb costs in its pursuit of company-wide profitability.
The technology-focused coffee chain temporarily or permanently closed multiple outlets across the city-state over the last few months, before filing a notice with local regulators on 11 October 2023 stating it was unable to continue operating because of its liabilities.
Flash Coffee reportedly owes over S$14m ($10.2m) to more than 150 creditors, according to Singapore-based Business Times. The coffee chain has not paid staff in Singapore their most recent monthly wages, the newspaper added.
Headquartered in Singapore, Flash Coffee said most of its head office staff had been offered roles in other markets.
Having opened its first store in Indonesia in 2020, Flash Coffee rapidly expanded to approximately 250 stores across southeast Asia following a $15m investment in April 2021.
The coffee chain raised $50m in Series B funding as recently as May 2023, which it said would be used to make its operations ‘solidly profitable’ and to ‘sustainably grow’ its footprint in its key growth market of Indonesia.
The decision to cease operations in Singapore, where it had previously reached 20 outlets, is regarded as a further step to concentrate its efforts on more profitable markets. The move follows exits in Japan and Taiwan last year, markets where the chain had launched in 2021.
Flash Coffee currently operates 93 stores in Indonesia, alongside 82 in Thailand, 17 in Hong Kong and seven outlets in South Korea.
Flash Coffee’s investors include White Star Capital, Delivery Hero, Geschwister Oetker and Conny & Co.