Chatime Philippines FRANMAN

Co, Elauria, Madayag, Teng, Soriano, Valle

Company Background: HistoryEstablished 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 TeaChicken Chops

Brand VisionTo establish Chatime as the market leader of Tea concept in the region

Brand MissionInternationalChatime 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 VisionPhilippinesOur 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 AdvantagesCompetitive International Management TeamUniversal Franchise SystemGlobal Integrated Marketing ExpertiseOperational ProcedureWell designed training and supportDedicated Research and Development Team and Exclusive Food Inspection LabReliable Global CertificationFounders

BranchesHave 9 company-owned stores and 28 franchised stores

Some of the branches are : Chatime Robinson's Galleria SupermarketChatime One Archers Place, TaftChatime SM Mall of Asia, ManilaChatime SM North EdsaChatime Alabang Town CenterChatime Cash and Carry, Makati CityChatime SM Aura, TaguigChatime SM Megamall, MandaluyongChatime SM City Manila

Organizational Chart (Philippines)

Franchising HistoryStarted with a basic franchising package as Master FranchiseeSub franchising as a strategy for brand recallFirst franchisee: member of the familyFirst 3 franchises as prototype unitFix structure of the business Perfect the IT SystemsChallengesThe biggest challenge was getting all the IT systems in placeTo work efficiently and effectively in warehousing and logistics of the raw materials90% of their goods are imported from Taiwan. ChallengesFranchiseesMinimize its costs by buying cheaper raw materials Too enterprising by making their own promos

Franchisee relationshipStriking a balance between treating them as investors and as being their bossesSettle conflicts and agree on compromises

DocumentsDocuments from principal owner from Taiwan

Franchisors consultant hands out documents for sub franchiseesNetwork or AffiliationsSister company : French Baker

Principal used the expertise in baking to enhance the business image

Chatime franchisees from other countriesWork with them to push the brand forward on a global scaleNetwork or AffiliationsCharacteristics of a franchisee:Follow the rulesNot too enterprising Doesnt look for ways to minimize costsHave the capacity to take on multiple stores

Franchise CouncilHave constant discussion with franchisees on how to improve their stores

Rank all stores based on different metricsQuality, Service and Cleanliness (QSC)Sales growth

Has roving trainers to provide operational supportAuditors who monitor the stores regularlyGoals / Plans

Philippines: 50 stores by 2014

Franchise System

ConclusionWhy Chatime became successful

Strong brand recall

Expansion through business format franchising

Balanced relationship with franchisees

Used a prototype unit to smoothen operations