Chatime (Chinese: 日出茶太; pinyin: Rìchūchátài; Pe̍h-ōe-jī: Ji̍t-chhut Tê-thài) is a Taiwanese global franchiseteahouse chain based in Zhubei. Chatime is the largest teahouse franchise in the world.[4] Its expansion and growth model is through franchising.[5] 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 Kingdom, United States, Australia, New Zealand, Maldives, India, Ireland, United Arab Emirates, Japan, Mongolia, Lebanon, Mauritius and South Korea, Switzerland among others now.[5][6]
Its parent company, La Kaffa International Co Ltd [zh], debuted on the Emerging Stock Market (Chinese: 興櫃市場; Pe̍h-ōe-jī: Hèng-kūi Chhī-tiûⁿ) in December 2012 at NT$168 per share. It is the only publicly listedbubble tea company in Taiwan.[7]
History
Chatime tea.
Henry Wang Yao-Hui founded Chatime in 2005 in Hsinchu, Taiwan, under the parent company, La Kaffa Coffee.[3]
Expansion
The company opened its first outlet outside of Taiwan in California in 2006,[6] followed by Australia in 2009,[8] where it currently has over 70 stores.[9] This was followed by Malaysia[10] in 2010.[11] Its Malaysian operations currently account for just under 50% of its global revenue.[10]
After its two stores in New York, its third store in the United States opened at Mall of America in March 2012.[12] The Chatime store in London is located on Old Compton Street.[13]
In the Philippines, it planned to open 50 stores by 2014,[1] 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.[14]
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. There are 16 locations in Toronto, ON alone in July 2021.
Chatime's parent company, La Kaffa International Co. Ltd., debuted on Taiwan's Emerging Stock Market (興櫃市場) in December 2012 at NT$168 per share[15] under the stock code 2732.[5] It is the only publicly listed bubble tea company in Taiwan.[7]
Products
The brand's best-selling drink is its Chatime "pearl" milk tea.[3] The brand has a variety of drinks under categories such as milk tea, fresh tea, fruit tea, "oriental pop tea", "QQ" jelly (Not available in Australia), "mousse", juices, smoothies and coffee.[16][17] Its products are available with less sugar.[1]
Typically, Chatime products come with a variety of toppings such as "pearls", while "QQ" jelly is a mixture of "pearls" and nata de coco.[1]
Some products are only available in certain countries. For example, in Malaysia, Chatime introduced three flavours in collaboration with Horlicks from GlaxoSmithKline.[18]
Locations
As of 2018, Chatime is present in 62 countries and territories.[19]
America
Canada
United States
Mexico
Colombia
Europe
United Kingdom
Republic of Ireland
France
Germany
Czech Republic
Iceland
Lithuania
Netherlands
Finland
Sweden
Bulgaria
Middle East
United Arab Emirates
Oman
Kuwait
Qatar
Lebanon
Saudi Arabia
Africa
Mauritius
Oceania
Australia
Guam
New Zealand
Fiji
Asia
Bangladesh
Brunei
Cambodia
China
Hong Kong (China)
India
Indonesia
Japan
Macau (China)
Malaysia
Maldives
Pakistan
Philippines
South Korea
Taiwan
Vietnam
Nepal
Collaborations
Chatime was the first bubble tea brand to be made available in-flight in a collaboration with AirAsiaChatime became the first beverage company in Malaysia to host an official account on WeChat. On the far left and right are WeChat ambassadors Lisa Surihani and Shaheizy Sam.[20]
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.[21] The collaboration was organised by the then Chatime Malaysia's CEO, Bryan Loo.[21]
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.[22]
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.[27]
Counterfeit
In South Korea, Chatime said it would take legal action against a store which sold similar products and was recruiting potential franchises.[28]
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.[29] This however appears to be largely incorrect with Loob Holding rebranding 161 out of 165 Chatime outlets to Tealive brand on 17 February 2017.[30][31] Due to Loob Holding's alleged use of unapproved ingredients (which were later found out to be collaborations with other brands for localization purposes),[32] 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 (bubble tea) 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.[33] 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. On 30 August 2018, La Kaffa and Loob reached an out-of-court settlement to amicably resolve all their disputes arising from their one-time franchise relationship of the latter’s Chatime bubble tea brand and agreed to withdraw all proceedings in Malaysian courts and arbitration in Singapore. The settlement shall not constitute nor be deemed nor treated by any party as an admission of any allegation and/or liability. Parties have come to an agreement in resolution of their disputes, in which the decision has also been made to stop all court or any other enforcement actions against each other.
Chatime Australia is alleged to have underpaid 152 employees (including 42 junior workers and 95 visa holders, resulting in a loss of $169,320 in wages) of 10 company-owned outlets across in Sydney and Melbourne a total of about $169,000. During the period, Chatime Australia reportedly paid employees at company-operated stores flat rates as low as $7.59 to $24.30 per hour adopted a practice of not paying Fast Food Industry Award entitlements such as loadings and penalty rates.[34]
