Company Background: History ● Established Chatime in 2005 by Henry Wang under La Kaffa Coffee in Hsinchu, Taiwan ● Offers the world’s most authentic tea experience with the implementation of the “High Tech Tea Making” procedure ● Franchises its company to expand and grow worldwide
Products
Milk Tea Chicken Chops
Brand Vision “To establish Chatime as the market leader of Tea concept in the region”
Brand Mission International “Chatime mission statement is to provide consumers with fresh,
health and quality tea drinks. Chatime believed that health and quality take account of guarantee of security on products we served. As a responsible corporate that has over 485 retail outlets worldwide up to date. Chatime takes food safety as our top most priority and we ensure stringent quality and safety control on our ingredients.”
Brand Vision Philippines “Our goal is to create an eastern version of the coffee shop to attract the fast-paced and health-conscious youth. With the support of our partners and consultants in Taiwan, we will keep
inventing local flavored drinks that go well with the aroma of tea, in order to establish a tea drinking culture worldwide.”
Brand Advantages • • • • • •
Competitive International Management Team Universal Franchise System Global Integrated Marketing Expertise Operational Procedure
Well designed training and support Dedicated Research and Development Team and Exclusive Food Inspection Lab
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Reliable Global Certification
Founders
Branches • •
Have 9 company-owned stores and 28 franchised stores Some of the branches are : o
Chatime Robinson's Galleria Supermarket
o
Chatime One Archers Place, Taft
o
Chatime SM Mall of Asia, Manila
o
Chatime SM North Edsa
o
Chatime Alabang Town Center
o
Chatime Cash and Carry, Makati City
o
Chatime SM Aura, Taguig
o
Chatime SM Megamall, Mandaluyong
o
Chatime SM City Manila
Organizational Chart (Philippines)
Franchising History ● Started with a basic franchising package as Master Franchisee ● Sub franchising as a strategy for brand recall ● First franchisee: member of the family ● First 3 franchises as prototype unit ○ Fix structure of the business ○ Perfect the IT Systems
Challenges ● The biggest challenge was getting all the IT systems in place ○ To work efficiently and effectively in warehousing and logistics of the
raw materials ○ 90% of their goods are imported from Taiwan.
Challenges ● Franchisees ○ Minimize its costs by buying cheaper raw materials
○ Too “enterprising” by making their own promos ● Franchisee relationship ○ Striking a balance between treating them as investors and as being their “bosses”
○ Settle conflicts and agree on compromises
Documents
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Documents from principal owner from Taiwan
Franchisor’s consultant hands out documents for sub franchisees
Network or Affiliations ● Sister company : French Baker ● Principal used the expertise in baking to enhance the business image ● Chatime franchisees from other countries ○ Work with them to push the brand forward on a global scale
Network or Affiliations ● Characteristics of a franchisee: ○ Follow the rules ○ Not too enterprising ○ Doesn’t look for ways to minimize costs ○ Have the capacity to take on multiple stores
Franchise Council •
Have constant discussion with franchisees on how to improve their stores
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Rank all stores based on different metrics o Quality, Service and Cleanliness (QSC) o Sales growth
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Has roving trainers to provide operational support Auditors who monitor the stores regularly
Goals / Plans Philippines: 50 stores by 2014
Franchise System
Conclusion Why Chatime became successful
• • • •
Strong brand recall Expansion through business format franchising
Balanced relationship with franchisees Used a prototype unit to smoothen operations
