PETALING JAYA: The clock is ticking for Loob Holdings Sdn Bhd, the former franchise holder for Chatime, as they now have 45 days to rebrand themselves.
At a press conference at the Loob Holdings office here today, chief executive officer Bryan Loo said that the company is working on setting up their own brand to replace Chatime.
“We agreed to the contract termination by La Kaffa Co Ltd last Friday, and under the franchisor-franchisee agreement, we have 45 days to go before we take down the name and replace it with our brand,” he said.
However, the young entrepreneur kept mum over his brand’s identity and said he could only reveal it in early March.
He said he is confident that customers would still buy their drinks under a new brand.
“I believe the transition from Chatime to our new brand will be a smooth one. This is because the quality of our drinks would be the same or even better,” Loo added.
Loo said since becoming the Chatime franchisee for Malaysia six years ago, Loob Holdings has built the brand from scratch and that even the products available were gradually introduced by them.
Asked if the company could continue to use the recipes provided by the Taiwanese franchisor, he said bubble milk tea recipes were common among the tea companies.
“We were only given basic menu and nothing else. We have also created our own products.
“There is no real recipe for what we sell among the industry players. Whatever we make is all based on recipes that are openly known among industry players,” Loo said adding that the company had a research and development team to come up with new products and improve existing ones.
When asked if Loob feared La Kaffa will revive the Chatime brand here again through another franchisee, he said the Taiwanese company is welcome to.
“This is an open market and there is room for them if they want to come in. If they are here, we would open next to them,” Loo said.
The dispute between Loob Holdings and La Kaffa began early this month when the Taiwanese company abruptly terminated the former’s contract, despite there being another 24 years left for Loob Holdings to be the sole franchisee in the country. The contract was to run until 2041.
Loo had previously lodged a police report over the termination, citing La Kaffa should abide by the law.
He also pledged to save the fate of more than 1,000 workers in his company.