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Yellow Tie Hospitality to launch Taiwanese brand Chachago in Bengaluru
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Saturday, 29 December, 2018, 16 : 00 PM [IST]
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Our Bureau, Bengaluru
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The Karan Tanna-led Yellow Tie Hospitality, a leading food and beverage franchise management company, has tied up with Taiwanese beverage brand Chachago to launch its first outlet in Bengaluru in January 2019.
The company has acquired the master franchise rights for the brand in India as well as the United Arab Emirates (UAE), Turkey, Kuwait, Lebanon, Jordan, Israel, Oman, Syria, Turkey, Iran, Iraq, Qatar, Bahrain and Afghanistan, and plans to launch 100 outlets in India by 2021, with an overall investment of $6 million in brand expansion and development in India.
Chachago is known for its varieties of Taiwanese milk tea, bubble teas, fruit-infused beverage, cheese-based beverages, milkshakes and other specialty beverages and desserts.
This is the first time the brand is entering India, after having established its presence in countries like Taiwan, Canada, Australia, Hong Kong, Vietnam, and the Philippines.
A typical Chachago outlet will be in malls, high streets and educational institutions, and will be spread over an area of 100-500sq ft. A capex of Rs 20-40 lakh will be invested in building each outlet.
Tanna, who founded Yellow Tie Hospitlaity, said, “Chachago is a specialty beverage brand originated in Taiwan, a country also known as the House of Milk Tea. We felt Indian consumers would connect with these specialty beverages, as there is a high demand for them in a tropical country like ours.”
“It is a well-known fact that specialty beverages are a large and growing segment in the quick service restaurant (QSR) category. As the market evolves, niche offerings are becoming more popular, giving us confidence that a brand like this will go down well with Indian consumers,” he added.
“Chachago is positioned very well with a gamut of products, ranging from various teas to fruit infusions and milkshakes. Chachago will be a one-stop-destination for premium beverages. We are very sure that the finest product development capability of Chachago in Taiwan combined with their experience of over three decades and optimised operation to give more throughput, will enable very quick growth for them in India,” Tanna said.
He added that there was a plan to turn Chachago into a 300-outlet chain by 2023 across the franchise geographies.
“Going forward, the company is also looking for strong growth in countries outside India by the second half of 2019; and by the year 2023, we are expecting the total outlets of Chachago to contribute approximately Rs 120 crore in annual revenue,” Tanna said.
“We have tasted success in the very competitive Taiwanese market because of our own capability of using the most premium ingredients with optimized results. These ingredients are not only appreciated in Taiwan, but also in other countries like Canada and Australia,” Tanna said.
“We are very sure that with our experience and the expertise of Yellow Tie Hospitality, Chachago will be able to grow aggressively in a market which is the second highest competitive market in the world. We look forward to our presence in India,” said Hseih Yu Yin, owner, Chachago.
To further streamline the franchising process for Chachago, the company will go through a master franchise and multi-unit franchise route, wherein the franchise selection criteria will be based as per international brand standards. The potential franchise owner’s credibility will be audited by Yellow Tie Hospitality.
Economic growth and social change on the Indian sub-continent are causing the beverage, dairy and liquid food industry to boom.
Euromonitor International forecasted that all beverage sectors will grow at double-digit rates in the next four years, which drink technology India (dti) will also benefit from.
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