Chatime Australia is diversifying beyond bubble tea by launching its Level Up coffee range, designed to tap into the growing coffee culture in Australia. With coffee becoming the nation’s most consumed beverage in 2024, Chatime is aiming to attract older Millennials (ages 35-44) with three new coffee options: Iced Long Black, Iced Latte, and Brown Sugar Cookie Latte.
Rachel Druce, National Marketing Manager at Chatime Australia, explained that the move was driven by customer demand for a coffee offering. “Our approach to introducing coffee has been customer-driven,” she said during a video conference with QSR Media. “They wanted a coffee option.”
The introduction of coffee follows a successful study showing strong appeal among younger customers aged 18 to 34, but with the new range, Chatime is now targeting an older demographic.
In line with Australia’s growing coffee culture, where six out of ten Aussies consumed coffee in 2024, Chatime is leveraging its expertise in customisation and indulgent products to appeal to this new customer base. Chatime’s Global CEO, Carlos Antonius, highlighted the potential of coffee when paired with the brand’s established strengths in creative mix-ins and experiential products, known for their boba and tea offerings.
A unique feature of Chatime’s new coffee products is the use of a pour-over brewing method, allowing the company to utilise its existing tea brewing machines. This strategic move helped avoid costly new investments, while offering a novel coffee experience. Additionally, customers can enjoy signature add-ons like pearls in their iced lattes or Cream Mousse in their Iced Long Black.
Chatime is promoting the new coffee line through digital channels, including YouTube and its app, as part of a broader strategy to enhance its digital presence and customer engagement. Self-serve kiosks have also been introduced for added convenience, while digital loyalty initiatives aim to increase customer retention.
In a bid to attract budget-conscious consumers, Chatime is offering a chance to win prizes, including custom-built gaming PCs, further boosting its appeal to tech-savvy coffee lovers. Looking ahead, Druce noted that Chatime is refining its loyalty experiences and expanding into the catering market, positioning itself for continued growth in this competitive space.
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