Everyone was shocked to hear about Chatime Malaysia’s dispute with the Taiwanese franchiser La Kaffa.
La Kaffa terminated Loob Holdings (the master franchiser for Chatime Malaysia and several other F&B outlets) and they will be taking over the Malaysian Chatime business operations and development.
The termination came too suddenly, especially when they still have 24 years left in the contract.
“Whatever dispute could have easily been sorted out through the franchise agreement in the manner of arbitration in Singapore. It should not have come to the extent of unilaterally terminating our franchise rights for Malaysia. This is something beyond our imagination.”
– Bryan Loo via Channel News Asia
Loo believe in the Malaysian market and emphasised how Chatime is where it is today thanks to the hardwork of Malaysians that develop the brand.
Interestingly, CEO Bryan Loo revealed that Chatime Malaysia makes up over 50% of Chatime’s global revenue!
Loob has lodged a police report against La Kaffa and both may enter into a legal battle. But as for now, Loob agreed to the termination and they will close down the brand, and then create their own new brand name which is described as “born in Malaysia and raised for the world”.
Loo told Channel News Asia,
“I would love to emphasise we’re a beverage company. We won’t pivot too much away from beverages. We will not suddenly sell fried mee hoon or something.
“It can be a different format of beverages, maybe specialising in (tea with fresh fruit)… so it’s an upgraded experience when it comes to quality products.”
Of course, La Kaffa can still restart Chatime in Malaysia, but Loo will not go down without a fight.
“If they enter the market, we guarantee we will open next to them.” he said.
So go grab your favourite beverages from Chatime before March 6!
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