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Chatime Philippines

FRANMAN

Company Background: History


Established Chatime in 2005 by Henry Wang under La Kaffa Coffee in Hsinchu, Taiwan Offers the worlds 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 Reliable Global Certification

Founders

Branches

Have 9 company-owned stores and 28 franchised stores
Some of the branches are :
o o o Chatime Robinson's Galleria Supermarket Chatime One Archers Place, Taft Chatime SM Mall of Asia, Manila

o
o o o o o

Chatime SM North Edsa


Chatime Alabang Town Center Chatime Cash and Carry, Makati City Chatime SM Aura, Taguig Chatime SM Megamall, Mandaluyong 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

Documents from principal owner from Taiwan

Franchisors 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 Doesnt 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 Rank all stores based on different metrics o Quality, Service and Cleanliness (QSC) o Sales growth

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