How One Bubble Tea Brand Saved Nearly SGD 2 Million by Reducing Outlet Managers Through Smart Operations Technology

 

In the fiercely competitive bubble tea sector, rising operational costs have placed intense pressure on profit margins. One prominent brand operating 158 outlets—80 corporate-owned and 78 franchised—has successfully countered this challenge by reinventing its management model. With plans to launch 30 additional outlets in the next six months, the company adopted a bold strategy: reduce outlet-level managerial dependence and enhance operational efficiency using digital tools.  

 

The Challenge: High Costs, Low Returns

 

Traditionally, each outlet employed a full-time manager at a cost of SGD 3,500 per month. Managers were responsible for:
 

• Completing operational checklists
• Training team members
• Ensuring revenue compliance
• Scheduling staff
• Managing inventory and supplies
• Upholding product quality
• Overseeing onboarding of new employees

 

As sales plateaued and labor costs escalated, leadership faced a critical decision—scale the business with the existing structure or innovate with a more scalable and cost-effective system.

 

The Strategic Pivot: Technology Meets Multi-Unit Oversight

 

Rather than adding more managers, the company adopted TreeAMS, a cloud-based operations management platform designed to streamline daily workflows and standardize processes across multi-unit operations. The platform’s robust feature set—including traffic light performance alerts, IoT integrations, digital audits, issue tracking, and automated product reordering—enabled one manager to oversee multiple outlets, often between three to six stores.  

Franchisees benefited as well, with improved profitability through shared managerial resources and structured operational oversight.

TreeAMS in Action: Reinventing Store Operations

 

TreeAMS digitized essential outlet routines and linked HQ directly with frontline teams. Department leaders could now monitor operations in real time across:

• Opening Procedures: Tea brewing, pearl production, and store setup
• Closing Activities: Cleaning, stock counts, reorder prompts, revenue reconciliation
• Training & Onboarding: Assigning training modules, tracking progress, conducting OJT evaluations remotely, and certifying staff online
• Audits: Designing and executing outlet audits, logging results digitally, and assigning corrective actions to district coaches
• Risk Monitoring: Traffic light alerts signaled underperformance (red) or compliance (green/yellow), allowing HQ to focus on the outlets that need attention most

 

Operational Payoffs: From Forms to Focus

 

By automating routine checklists and reporting, outlet managers were empowered to focus on high-value tasks like:

• Coaching staff at underperforming outlets
• Recognizing and rewarding strong performers

 

This shift nurtured stronger leadership, streamlined management workloads, and improved morale across the network.

   

   

Manpower Savings: The Numbers Speak for Themselves

 

Here’s the revised breakdown of manpower savings across 80 corporate-owned outlets, accounting for newly added district managers:

 

Metric	Monthly Impact (SGD)	Annual Impact (SGD)
Managers reduced (56 fewer managers)	+196,000 saved	+2,352,000 saved
District managers added (6 roles)	−30,000 additional cost	−360,000 additional cost
Net Estimated Savings	+166,000 per month	+1,992,000 per year

 

These figures reflect only corporate outlets; franchisees likely experienced additional savings by embracing multi-unit leadership models.

Broader Benefits of Digital Operations

Beyond cost reduction, TreeAMS enhanced operational excellence across several fronts:

• Real-Time Oversight: Instant alerts and dashboards empower swift, informed decisions
• Scalable Training: Uniform SOPs rolled out system-wide via digital onboarding
• Quality Assurance: IoT-enabled equipment monitoring, audit tracking, and standardized corrective measures
• Data-Driven Insights: Every checklist and audit enriches the company’s analytical capabilities
• Improved Retention: Structured feedback loops increased accountability and team motivation

   

   

Strategic Impact on Growth

 

• 1. Accelerated Expansion: The brand can scale without hiring a manager for each outlet
• 2. Agility & Standardization: Reduced supervision needs and higher SOP adherence
• 3. Smarter Decision Making: Performance metrics fuel proactive strategy shifts
• 4. Culture of Ownership: Team members embrace accountability through digital transparency
• 5. Stronger Unit Economics: Lower labor costs and higher margins per outlet create compounding profitability

   

   

The Human Factor: Culture Drives Change

Technology alone wasn’t the solution. The company’s leadership was deeply invested in change management—realigning HR policies, revising onboarding systems, and introducing new reward structures. The success of the TreeAMS rollout hinged on active buy-in across all teams, especially middle managers and franchisees.
By cultivating a company culture that values operational digitalization, the brand fostered a community built on shared goals, continual improvement, and sustained growth.