Chatime


Chatime is a Taiwanese global franchise teahouse chain based in Zhubei. Chatime is the largest teahouse franchise in the world. Its expansion and growth model is through franchising. It operates 2500+ outlets in 38 countries. In 2006, it opened its first store outside of Taiwan in California, United States and it has since expanded to China, Malaysia, Canada, Bangladesh, Indonesia, Philippines, Cambodia, Thailand, United States, Australia, New Zealand, India, United Arab Emirates, Japan, Mauritius and South Korea, among others now.
Its parent company,, debuted on the Emerging Stock Market in December 2012 at NT$168 per share. It is the only publicly listed bubble tea company in Taiwan.

History

Henry Wang Yao-Hui founded Chatime in 2005 in Hsinchu, Taiwan, under the parent company, La Kaffa Coffee.

Expansion

The company opened its first outlet outside of Taiwan in California in 2006, followed by Australia in 2009, where it currently has over 70 stores. This was followed by Malaysia in 2010. Its Malaysian operations currently account for just under 50% of its global revenue.
In 2012, the brand opened its first store in India, a traditional tea drinking country, in New Delhi.
After its two stores in New York, its third store in the United States opened at Mall of America in March 2012. The Chatime store in London is located on Old Compton Street.
In the Philippines, it planned to open 50 stores by 2014, while in Malaysia, it opened its 100th store in 2013, with plans to open up to 250 stores within a three to five-year period.
As of December 2018, the brand has 16 locations throughout Vancouver, BC and 2 locations in Halifax, NS, Canada, as well as one in Richmond Hill, ON. Sydney, NS also has one as of January 2020.
As of 2020, Chatime has ten stores in Dhaka and one store in Chittagong in Bangladesh.
, Klang, Malaysia
Chatime's parent company, La Kaffa International Co. Ltd., debuted on Taiwan's Emerging Stock Market in December 2012 at NT$168 per share under the stock code 2732. It is the only publicly listed bubble tea company in Taiwan.

Products

The brand's best-selling drink is its Chatime "pearl" milk tea. The brand has a variety of drinks under categories such as milk tea, fresh tea, fruit tea, "oriental pop tea", "QQ" jelly, "mousse", juices, smoothies and coffee. Its products are available with less sugar.
Typically, Chatime products come with a variety of toppings such as "pearls", while "QQ" jelly is a mixture of "pearls" and nata de coco.
Some products are only available in certain countries. For example, in Malaysia, Chatime introduced three flavours in collaboration with Horlicks from GlaxoSmithKline.

Locations

As of 2018, Chatime is present in 39 countries and territories.

Collaborations

In 2012, AirAsia announced that it would offer Chatime on its flights and claimed that is would be the "world's first and only in-flight bubble tea". The airline said that two speciality bubble tea drinks, Roasted Milk Tea with Red Bean and Mango Green Tea with Rainbow Jelly, were available on flights operated by Malaysian AirAsia with the airline code AK to 48 destinations, which include India, Hong Kong, Thailand and the Philippines. The collaboration was organised by Chatime Malaysia's CEO, Bryan Loo.
Chatime became the first beverage company in Malaysia to host an official account on WeChat. To mark the collaboration, Chatime gave away 1 million cups of drinks worth over RM6 million/US$2 million through digital coupons made available via the WeChat platform.
Other collaborations include partnerships with McDonald's, Horlicks from GlaxoSmithKline, and biscuit brand Julie's.

Brand ambassadors

Chatime announced in 2012 that award-winning Taiwan actress Ariel Lin would serve as its brand ambassador.
The following year, the brand announced that Crystal Lee had become the lifestyle tea provider's first "Chatime Friend". The announcement was made soon after Lee became the youngest actress ever to have won the award for Best Actress at the 16th Shanghai International Film Festival.

Counterfeit

In South Korea, Chatime said it would take legal action against a store which sold similar products and was recruiting potential franchises. Additionally, in Malaysia, they will seek an injunction against newly launched Tealive for operating and selling similar products and the possibility of using the same trade practices as its predecessor, Chatime.

Legal & regulatory matters

In Malaysia, the master franchisee agreement was terminated on 5 January 2017 by La Kaffa International due to contractual dispute with its country master franchisee, Loob Holding. This legal dispute attracted the attention of local media and is currently in arbitration in Singapore. La Kaffa held a press conference in Kuala Lumpur announcing it would be taking over the Malaysian Chatime business operations and development with immediate effect. This however appears to be largely incorrect with Loob Holding rebranding 161 out of 165 Chatime outlets to Tealive brand on 17 February 2017. Due to Loob Holding's alleged use of unapproved ingredients, questionable practices, and a blatant breach of the terms of contract, La Kaffa International director Chen Zhao sought an injunction against the former master franchisee from operating a similar business in Malaysia. On 29 May 2017, the High Court dismissed the injunction bid by La Kaffa International, against Loob Holding Sdn Bhd, from carrying a similar business as Chatime. Judicial Commissioner Wong Kian Kheong, in his oral judgement, ruled that the injunction would cause great risk of injustice to Loob Holding and its business and also associates. The court also found that the franchise termination by La Kaffa was done in bad faith. While both companies have taken their dispute to the Singapore International Arbitration Centre, La Kaffa reportedly tries to persuade Loob Holding to settle this matter outside court.
Chatime Australia is alleged to have underpaid 152 employees of 10 company-owned outlets across in Sydney and Melbourne a total of about $169,000.