La Kaffa International, known for its innovative approach to food and drink, has made a splash with its latest acquisition—Hanlin Tea Room—for a cool NT$272 million. This move, announced on January 7, aims to marry the best of Taiwan’s culinary traditions, like the beloved bubble tea and hearty beef noodles, potentially taking these flavors to the global stage.
Hanlin Tea Room, a local institution since 1986, is credited with creating Taiwan’s very first bubble tea. With 40 stores across Taiwan, mostly in department stores, it’s a brand that has perfected the art of tea and bubble creations. Last year alone, the brand pulled in an impressive NT$400 million in revenue. Wang Li-yu, La Kaffa’s Executive Vice President, is optimistic about the Taiwanese market and forecasts annual revenue growth of more than 10%, aiming for NT$450 million this year with a healthy profit margin of 7% to 8%.
Beyond Taiwan, Hanlin Tea Room is making a name for itself in the U.S. with three franchised locations, setting the stage for even more international growth. La Kaffa’s Chairman, Wang Yao-hui, acknowledged the post-pandemic challenges facing the restaurant industry, particularly the struggles of independent businesses with rising operational costs, food safety concerns, and a lack of labor.
Looking ahead, Wang Yao-hui predicts a slight slowdown in the restaurant industry by 2025, as labor shortages are expected to hinder the ability of restaurants to meet the increasing demand. Nonetheless, La Kaffa’s latest acquisition points to a bigger picture of culinary fusion and growth on the horizon.
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