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Former Starbucks VP Joins Chinese Bubble Tea Chain CHAGEE

July 16, 2024
in Technology
Former Starbucks VP Joins Chinese Bubble Tea Chain CHAGEE
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According to a report by Chinese media outlet 36Kr, Starbucks’ Vice President Li Tao has left the company and joined Chinese tea beverage brand CHAGEE earlier this year. However, CHAGEE denied the report.

Previously, Li Tao was in charge of national store development and asset management at Starbucks. Prior to Starbucks, Li Tao’s career spanned several sectors including the restaurant and retail industries, serving as Development Director at Yum China Holdings, Inc., Vice President at Daphne International Holdings Limited, and Vice President at OneTeaOneSeat Catering Management Co., Ltd.

“Li Tao is very experienced in the industry and holds many important property resources,” revealed an insider close to Starbucks to reporter.

The move to recruit from Starbucks comes at a crucial time for CHAGEE as it challenges the “Eastern Starbucks.” In May of this year, the founder of Chagee, Zhang Junjie, stated that the goal for 2024 is to “exceed Starbucks China in sales.” Prior to this, CHAGEE’s Q1 2024 GMV exceeded 5.8 billion yuan.

Li Tao’s recruitment is just part of a large-scale talent acquisition effort by CHAGEE. CHAGEE is currently recruiting heavily in the industry, “from headquarters to various branches,” with a majority coming from Starbucks and Tims. In terms of brand marketing, they are recruiting from companies like Xiaohongshu and Huawei, according to anonymous insiders cited by 36Kr.

Since 2023, CHAGEE has opened more than 3,500 new stores, and it took them over five years to open the first 1,000 stores. With a GMV target exceeding 20 billion yuan for this year, the management clearly has high expectations for store scale. Just as McDonald’s and KFC are considered the “Whampoa Military Academy” of Chinese food chains, Starbucks is known as the “Whampoa Military Academy” of coffee chains, famous for its store management system and promotion system.

There are also rumors that CHAGEE will IPO in the U.S. this year. Besides financial performance, a well-experienced executive team can make investors more confident in its management capabilities.

CHAGEE is a phenomenon in the chain tea beverage industry, setting record highs in GMV and cup output, and its growth momentum is strong. It may also be a unique presence in the current saturated market. Its “Tea Latte” positioned fresh milk tea has made people see the possibility of the “Eastern Starbucks” again. However, the biggest challenge on the path of expansion may be the management of a nationwide store operation system.

SEE ALSO: Realme GT6 Phone Officially Released, Starting at 2799 Yuan

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