Chatime, the yummy bubble tea beverage, is no stranger to Malaysians. But there might be some changes happening soon.
Its franchisor from Taiwan, La Kaffa International Ltd announced on Friday that it will terminate its contract with Loob Holdings Sdn Bhd, the sole Malaysian franchisee with immediate effect.
According to Henry Wang, the chairman of La Kaffa, they would be taking over the management of all Chatime outlets in Malaysia.
“Food and beverage products can easily be substituted. Businesses must continue to reinvent themselves by introducing new brands and products based on market demand to attract customers.”
– Henry Wang
Source: Trip Advisor
The termination of the contract was said to be caused by disagreements due to royalty and ingredient sources. A statement from La Kaffa executive vice president Teresa Wang said:
“Due to disagreements with Loob Holdings, we have no choice but to make this painful decision.”
Loob Holdings is the master franchisee and the outlets are either directly owned, sub-franchised or a joint venture with sub-franchisees. Bryan Loo, the chief executive officer of Loob Holdings Sdn Bhd will be seeking legal redress as all 165 Chatime outlets were owned and operated by them.
Besides Chatime, Loob has a few known brands under them, such as Tino’s Pizza, Llaollao, and Soda Xpress.
Source: Bryan Loo Facebook Page
Chatime lovers need not fear that their beloved beverages will disappear as Loob Holdings has assured that all outlets will be operating as usual while waiting for the results of the legal process. Bryan Loo said:
“Let me assure our Malaysian customers that our outlets would continue to offer the same quality products and excellent service that the company has built up over the past six years.”
Meanwhile, La Kaffa said they are planning to open an operation centre in Malaysia within the first quarter to provide support to all the Chatime outlets in Malaysia.
Sounds like good news for Chatime fans as it seems that your favourite beverage is here to stay either way!