Canada’s largest bubble tea chain is focusing on strengthening its leadership position in the market while expanding cautiously, according to CEO Trinh Tham, who says the company is emphasizing operational discipline, digital engagement and franchise partnerships as it grows its footprint.
Chatime currently operates about 100 locations across Canada, primarily in Ontario and British Columbia, and opened six new stores last year while preparing additional locations that are expected to come online this year.
Tham, who joined the company in March last year and formally assumed the CEO role in June, said her first year has been focused less on rapid expansion and more on reinforcing the brand’s foundation and ensuring consistent execution across the system.
“If I take a step back and think about the company overall, since I joined almost a year ago, it’s really been about widening our leadership position in the Canadian bubble tea category,” she said in an interview.
The company is in a category that is part of her roots and culture.
“I came up the marketing, digital, ecommerce merchandising track. I’ve always advocated for marketers who have business acumen and the importance of that function being connected to their CFO, their CEO, the business and of course most importantly the customer,” said Tham.
Tham is also CEO of sister company Bake Code. Previously, she worked with Universal Music Canada, Harry Rosen, Sobeys, Tim Hortons, Bell Media, Loblaw Companies, Grand & Toy and Motorola Solutions.
Bake Code and Chatime are under the Kevito Group umbrella.
Focus on strengthening the system
While store growth remains part of the company’s strategy, Tham said the emphasis over the past year has been strengthening the internal structure of the business.
“We’re at about 100 locations across Canada, mostly in Ontario and B.C., and we’re continuing to expand strategically in markets where we see long-term opportunity,” she said.
“It’s not just about store count. It’s also about the structural strength of the organization.”
Last year, it opened six new locations.
Chatime operates under a franchise-heavy model, with roughly 90 per cent of its locations owned by franchise partners. As a result, Tham said much of her focus has been on reinforcing operational standards across the network and strengthening relationships within the franchise system.
Over the past year, the company has been encouraging the development of multi-unit franchise operators while also bringing new franchisees into the system.
“We’ve been fostering growth within our franchise system and developing more multi-unit franchise partners, as well as inviting new franchise partners into our system,” she said.
Alongside franchise development, the company has prioritized improving digital engagement and strengthening its customer loyalty platform.
Bubble tea positioned as an “affordable luxury”
Despite ongoing economic uncertainty and cautious consumer spending, Tham said the quick-service beverage category continues to benefit from consumers seeking relatively affordable experiences.
From her perspective, discretionary spending has shifted toward experiential food and beverage offerings, particularly in quick-service formats.
“Canadian consumers still remain cautious, although in Q1 we’ve seen a little more positive sentiment toward spending,” she said.
Even as overall restaurant spending moderates, she said quick-service dining continues to attract consumers looking for smaller indulgences.
“To me this highlights the continued allocation of discretionary dollars toward meaningful experiences, particularly experiential food and beverage, which I would consider Chatime to be in,” she said.
Tham described bubble tea as fitting naturally within that spending behaviour.
“I see bubble tea, particularly the experience and product we offer at Chatime, as an affordable luxury. It’s customizable and very social at the same time.”
Customization is central to the bubble tea category, allowing customers to adjust sweetness levels, ice levels, dairy options and toppings in their drinks.
Product innovation and marketing partnerships
Product innovation and marketing collaborations have also been part of the brand’s strategy to maintain customer engagement.
Late last year, the company launched a new brand promise called “Setting the Boba Bar,” built around three pillars: breadth, craft and personalization.
The initiative highlights five key beverage segments within the brand’s lineup: signature milk tea, matcha, fruit tea, brown sugar pearl bubble tea and taro-based drinks.
To simplify ordering for new customers while highlighting popular options, the company introduced what it calls the “Trending Eight,” a curated selection of eight beverages drawn from those categories.
Craft and preparation methods remain another point of emphasis within the chain’s operations.
“At Chatime we focus on consistency,” Tham said, noting that teas are sourced from Asia and brewed throughout the day, while the tapioca pearls used in drinks are slow-cooked for about an hour to achieve their desired texture.
Marketing campaigns have also been used to generate consumer interest and connect with younger audiences.
Last year the brand launched a limited-edition plush toy promotion tied to its beverage lineup, inspired by the broader “blind box” trend built around surprise collectibles. Tham said the program became the most successful promotional campaign the company has run.
The company also partnered with Oreo on a brown sugar bubble tea cookie promotion that extended into beverage offerings.
More recently, Chatime announced a collaboration with Barbie, timed around International Women’s Day, featuring limited-time drinks and related promotional activations across the network. The campaign was Be the Star of Your Own Sip.
“It’s one of the most ambitious cross-cultural partnerships we’ve done,” Tham said.
Digital loyalty growth
Another key area of focus has been the company’s digital platform and loyalty program, which was relaunched last year.
Tham said the program has delivered measurable gains in customer engagement and repeat visits.
“We saw a 26 per cent increase in loyalty attachment, a 27 per cent increase in monthly visit frequency, and a 50 per cent increase in new member acquisitions,” she said.
The program is designed to increase purchase frequency and average spending while strengthening the company’s connection with customers.
“We leverage the program along with product innovation and marketing programs to increase basket size, drive frequency and reinforce our overall brand positioning,” Tham said.
Expanding ecosystem with Bake Code
Alongside Chatime, Tham also leads Bake Code, a bakery concept that is part of the same corporate group.
The brand currently operates four locations in the Toronto area, including Markham, Richmond Hill and Toronto.
Bakery operations present unique challenges, she said, particularly as ingredient and raw material costs have risen in recent years.
“Bakery is a very tough and challenging business. Margins are tough. Cost of goods and raw materials have increased over the last several years,” Tham said.
Despite those pressures, the company sees Bake Code playing a strategic role within the broader business.
The bakery blends Asian and European baking traditions and also supplies select products directly to Chatime locations.
“If you go to a Chatime, you’re enjoying a Bake Code product that we’ve designed specifically for the Chatime system,” Tham said.
Beyond supplying its sister brand, Bake Code also produces wholesale products and catering for restaurants and hospitality clients, including custom products designed for luxury customers. For now, Tham said the focus is on strengthening the existing Bake Code network while using it to support the growth of Chatime.
“Right now my focus is really growing the Chatime system and strengthening the existing Bake Code network,” she said.
By leveraging the existing customer traffic in Chatime stores, the company hopes to build stronger demand for its bakery products while expanding its overall ecosystem.
“We know that’s a great way to grow attachment because I already have the customer in my Chatime stores,” Tham said.
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