Chatime (La Kaffa International Co. Ltd.) — Cyborg Score 7/10
Strong
Quick-service restaurant / Bubble tea franchise
Strategic Profile
Its expansion and growth model is through franchising. Chatime currently operates 15 locations in the United States, with plans to expand to 25 stores nationwide by the end of 2026. It is the only publicly listed bubble tea company in Taiwan.
Cyborg Score Rationale
Chatime maintains category leadership as the world's largest bubble tea franchise with strong international presence. Recent U.S. expansion (Nevada, Texas market entries in 2026), franchisee-friendly economics (lowest royalty at 3.5%), and positioning in a 7.7% CAGR bubble tea market support growth. Limited public financial data and rising competitive pressures from Mixue and Chagee present moderate headwinds.
Top Insights
Bubble tea continues its rapid growth across the United States, with the market projected to grow at a double-digit rate through the next decade.
The highest franchise fee ($78K) but the lowest royalty (3.5%) among major brands — math that rewards operators who hold for years.
Chatime is entering Nevada for the first time with plans to open six locations across Las Vegas (June 2026), with a second location scheduled to open later in 2026 in the Arts District.
The brand's best-selling drink is its Chatime "pearl" milk tea.
Named Competitors
Kung Fu Tea — Largest U.S. boba franchise by unit count
Gong cha — Fresh-brewed tea specialist with aggressive U.S. expansion
Mixue — World's largest restaurant chain by store count; ultra-low-price disruptor