Loob relinquishes Chatime franchise in Malaysia, mulls new brand name

After a dispute with franchisor La Kaffa International, Loob Holding’s is giving up hold over the Chatime franchise. In a press conference, La Kaffa said it will take on all management duties of the 165 Chatime stores in Malaysia.

According to media reports, CEO of Loob Holding’s Bryan Loo said La Kaffa would take over the business operations going forward.

The Star also quoted Loo saying that there were “disputes over business and operational matters” and that all of the outlets would stop using the Chatime branding going forward. Loo also added that with the same team and a workforce of 1000 employees and same outlet locations, his company would now be operating under a new brand name.

According to The Rakyat Post, a name hasn’t been decided on. Earlier reports also say that Loob had initially filed a police report and was getting legal counsel against the premature termination despite having 24 years more on the main contract.

Malaysia is one of the biggest markets for the Taiwanese bubble tea maker. It first entered the market in 2008, three years after it established itself in Taiwan. Globally it has a presence in Australia, China and US.

In a statement to A+M, Loo said the brand has decided on a name but is not able to reveal right it now.

“Rest assured it will be a well thought off name which will relate to our local consumers,” he said. He added Loob will remain committed in providing the best product and customer service to our current customers.

“Having built up Chatime over the past six years, we are confident that our homegrown brand will do well and strive beyond borders because of the company track record, reputation and the people behind it,” he said. When  asked if the product and marketing’s would remain the same, Loo said his team will continue to pursue our commitment in innovating new products and improving customer experience.

“With the technology and innovation we have developed over the years, we are confident that our consumers will find our offerings to be more relevant and exciting, with our usual standard of quality assured. Collaboration is part of our DNA and we will continue this route to elevate customer experience,” he said.

He added:  “We are grateful that we’ve been through six years of this journey with Chatime – from our very first store to its 165th  today. We are now more motivated to look into the future with our very own homegrown global footprint that will continue our legacy of introducing modern tea culture throughout the region and the world. With a company of over 1,000 people, we believe that we can make it happen


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