Ching Yu and Da Yung’s leave Hong Kong in October, highlighting exit planning for overseas franchises

Taiwanese tea brands Ching Yu and Da Yung’s withdrew completely from Hong Kong in October 2026. According to a World Journal report published on 1 November, Ching Yu’s Hung Hom shop closed on 25 October, while Da Yung’s last Hong Kong branch ceased trading on 12 October. For Taiwan’s franchising community, the significance extends beyond a reduction in shop numbers to the relationship between overseas agents, leases and the continuity of brand operations.

Ching Yu ends around 11 years of trading in Hong Kong

Citing the Hong Kong Economic Times, the report linked the closure of Ching Yu’s Hung Hom branch to its Hong Kong master agent’s impending withdrawal from local operations and the expiry of the shop’s lease. These are the specific circumstances disclosed and should not be taken as a direct reflection of the brand’s performance across all markets.

Ching Yu entered Hong Kong in 2015 after a local shop operator travelled to Taichung to bring the brand to the city. Its first shop opened in Mong Kok under a franchise arrangement, marking the start of around 11 years of trading in Hong Kong. The journey from that first opening to the master agent winding down its business offers a practical example of a Taiwanese brand expanding overseas through a local partner.

For Taiwanese brands considering a regional agency model, a partner’s role goes beyond getting shops open. How brand licensing arrangements align with local shop leases, and how existing commitments will be handled if an agent stops trading, are questions worth clarifying before signing an agreement.

Da Yung’s closes its final shop on 12 October

The same report noted that Da Yung’s had operated in Hong Kong for four years. Its final branch, at The Wai shopping centre in Tai Wai, closed on 12 October, completing the brand’s withdrawal from the market.

Although the two Taiwanese tea brands left the same market in the same month, this does not establish that they used the same partnership structure or closed for identical reasons. The Ching Yu report specifically referred to its master agent ending operations and a lease expiring; the coverage of Da Yung’s focused on its final shop ceasing to trade.

When assessing overseas expansion, Taiwan’s franchising community should therefore distinguish each brand’s individual arrangements from broader market conditions. Nor should the Hong Kong closures be interpreted as either brand withdrawing from Taiwan or other markets.

Hong Kong closure figures need to be read in context

World Journal cited figures from Property Station and market statistics referenced by Hong Kong media, reporting that at least 70 shops closed in Hong Kong in October, up around 75% from roughly 40 the previous month. The report also highlighted Hong Kong residents travelling to mainland China to spend, high operating costs, financial pressures and changing spending habits among younger consumers.

These figures cover shops across Hong Kong. They are not specific to Taiwanese tea brands or franchise outlets and cannot be used to calculate the closure rate of Taiwanese brands in the city. The market factors cited should likewise be treated as general context, rather than a complete explanation of either brand’s departure.

For operators preparing to expand abroad, a more practical approach is to recalculate rent, staffing and day-to-day operating costs for the intended trading area, rather than relying solely on a brand’s recognition in Taiwan to judge whether an overseas shop will be viable.

Overseas partnership assessments should include exit planning

The Hong Kong departures of Ching Yu and Da Yung’s offer the franchising community an opportunity to review overseas partnership terms. Alongside opening schedules and brand support, prospective partners can clarify the duration of agency agreements, arrangements when leases expire and notification procedures for ending the partnership.

Where several shops are involved, the operating entity and division of responsibilities for each location should also be established. Brand licensing, agency operations and shop leases should not be treated as one and the same. These are suggested checks for assessing a partnership, not descriptions of the two brands’ contractual terms.

Practical takeaway: Taiwanese brands expanding overseas through franchising should examine both how to open shops and how to exit in an orderly manner. Agency termination, lease coordination and external communications should all be on the pre-contract checklist.