Tea Chapter was in the red when he took over, but he wasn’t going to let the business fade
Tucked between the cocktail bars and KBBQ spots of Tanjong Pagar, Tea Chapter lies hidden in a tranquil shophouse along Neil Road.
Shut out from the rattle of cutlery and bar chatter, the space feels worlds apart from the scenes just outside—filled instead with soft Chinese classical music and the occasional clink of teacups. Traditional Chinese marble tables and chairs lend the teahouse its old-world charm, inviting guests to slow down and stay awhile.
Tea Chapter been around since 1989, and proudly touts itself as Singapore’s oldest and largest teahouse. It even drew dignitaries from around the world to visit for a sip of tea, including Queen Elizabeth, and former South Korean first lady Kim Jung Sook.
Yet, faced with changing times, Tea Chapter risks becoming a relic of the past. Chinese tea culture isn’t exactly the first thing on most Singaporeans’ weekend agenda, especially in a city where convenience often overshadows tradition.
But the second-generation owner of Tea Chapter, Fund Lee, isn’t content to let the tradition fade. The 39-year-old is finding new ways to keep the age-old art of Chinese tea alive by reimagining how it fits into modern life—in hopes of ensuring the heritage endures for years to come.
He grew up surrounded by the business
Tea Chapter began as a small joint venture led by 13 passionate tea enthusiasts, and Fund is the son of one of its original founders.
The business was always a part of his life—it was the backdrop to his childhood antics, when he “used to ‘steal’ tea eggs to barter with the neighbouring Chinese eatery for food.”
As a teenager, his parents would have him serve customers during school holidays. But he only truly began taking an active role in the business after graduating from university, eventually taking over Tea Chapter in 2012—a time when the teahouse was facing a decline.
“The business was more or less in the red back then,” Fund recalled. He often told his parents he felt it was “such a waste” that the teahouse had lost its former glory, as fewer people were engaged with Chinese culture and traditional practices.
“A lot of things were not done properly”
When he took over, Fund recalled that “a lot of things were not done properly.” For one, the business relied solely on word of mouth and had no marketing budget to build broader brand awareness. He quickly realised that this approach wouldn’t be sustainable in the long term.
Since then, Fund has spearheaded several developments: revamping Tea Chapter’s e-commerce channel, updating payment systems, embracing digital marketing, and forging collaborations with other brands and partners to reach new audiences.
Yet the path wasn’t easy. Working with a large group of shareholders who held tightly to traditional beliefs posed its own challenges, and Fund didn’t receive direct mentorship from them.
Instead, he learned by observing from the sidelines as they conducted courses for customers. To further expand his own knowledge, he also took formal tea courses, deepening his understanding of the craft.
Sticking to tradition
At the heart of Chinese tea culture is service—not just as hospitality, but as a profound expression of respect, gratitude, and the fostering of harmonious relationships.
This is why, despite modernising many aspects of Tea Chapter, Fund has stayed true to the fundamentals. Many practices haven’t changed because he doesn’t want to compromise the “essence of Chinese tea culture.”
Visitors can still expect a traditional experience: staff don’t simply place a pot of tea on the table—they demonstrate the proper way to brew and serve it, reflecting how tea is traditionally enjoyed.
Maintaining this level of service requires experienced staff, which has been a challenge for the business.
Fund admits they don’t have many full-time staff and finding younger employees is difficult. “Nobody really wants to apply for the job,” he said. “It’s relatively blue-collared, the pay isn’t going to be that great, so unless [they] really have a passion for it… it’s nearly impossible [to hire].”
At the moment, Tea Chapter relies on a mix of full-time and part-time staff, all of whom are trained on the job to uphold the teahouse’s traditional standards.
Pivoting their target audience
Beyond serving as an authentic teahouse for drinking, Tea Chapter also operates a retail store and online shop selling teas and teaware. They also offer tea appreciation packages and extended workshops for those looking to master the art in depth.
Of all these initiatives, Fund initially considered the school outreach programme the most successful.
Tea Chapter used to regularly bid for school projects, which accounted for 20 to 30 workshops a month, teaching around 100 students per session. Secondary schools also often selected their tea workshops for their Bicultural Weeks.
While schools were once the teahouse’s main audience, overreliance on these programmes meant there were fewer customers during off-peak periods.
To overcome this, Fund began marketing Tea Chapter’s offerings to a wider range of customers. Today, the teahouse serves a diverse demographic, from locals to tourists. “To be honest, for us, we can’t really choose—our [offerings] are very niche, so we have to actually target all of them.”
Retail now contributes a significant portion of Tea Chapter’s revenue, while workshops—though not originally the brand’s main focus—have also grown to become an important income stream, though Fund did not disclose specific figures.
Evolving the business
Looking ahead, Fund is focused on evolving Tea Chapter in ways that complement Chinese tea culture rather than expanding locations.
He feels the market for traditional Chinese tea in Singapore is “already saturated,” and replicating the full-service, space-intensive setup elsewhere simply doesn’t make sense economically.
“There’s no point… all of it just doesn’t add up mathematically,” he said.
Instead, he’s exploring new experiences that align with contemporary needs, such as mindfulness and mental wellness.
With support from a grant from the National Heritage Board, Tea Chapter plans to introduce initiatives that allow visitors to engage in self-facilitated relaxation while enjoying tea. The teahouse also intends to bring in consultants to design physical workshops that integrate these wellness elements.
Fund hopes that these innovations will help Tea Chapter continue to survive in Singapore’s challenging business landscape. After dedicating more than a decade to the business, he is determined to preserve the teahouse and revive Chinese tea culture in the city-state.
“I don’t wish a company that’s under my hands for so many years to go down under… ultimately, I hope [Tea Chapter] will be able to survive as a tea house in Singapore for the longest time.”
- Find out more about Tea Chapter here.
- Read other articles we’ve written on Singaporean businesses here.
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Featured Image Credit: Fund Lee/ Tea Chapter