Woodpeckers also operates the popular Spanish frozen yoghurt chain Llaollao in Malaysia. According to Woodpeckers director Tan Kai Young, the company plans to have around 40 ChaTraMue stores in Malaysia by the close of 2025. The Malaysian outlets will have the same menu as the Thai outlets and utilise the same high-quality Thai tea leaves.  This move follows ChaTraMue’s recent debut in Vietnam earlier this year, where its presence in Ho Chi Minh City garnered significant attention, drawing long queues of enthusiastic young patrons. The brand also successfully entered the Hong Kong market four years ago. The story so far According to Tan, while every regional milk tea market has its own tastes and preferences, Thai milk tea stands out for its distinctively strong flavour profile. This could help it stand out in the Malaysian market, where Taiwan-style bubble milk tea is currently the predominant style of tea drink. “The fact that we have been appointed the exclusive national franchisee for ChaTraMue in Malaysia means the brand is serious about franchising in the region and beyond. Actually, we’re the first franchise ever for ChaTraMue as their previous engagements were all through licensing,” he told Inside Retail. Tan is confident that ChaTraMue will spur a trend towards Thai milk tea in Malaysia, especially up north along the border with Thailand.  He revealed that Woodpeckers will have access to tea leaves that have been specially blended for ChaTraMue’s franchised business, which are slightly different from the tea leaves available on the retail market.  And he noted that there has been an uptick in consumer preference for milk tea that emphasises the taste of the real tea leaves.  “Much like artisanal coffee preference, tea lovers now want to enjoy authentic tea leaf-brewed beverages. For now, we are focussed on deepening our presence in Malaysia and we’re not in the regional market yet,” he explained. While Thai milk tea is not yet widely available in Malaysia, Tan believes that many consumers are already familiar with the product from travelling to Thailand, where many enjoy Thai milk tea. When it comes to sustainability, as a franchisee, the company is guided by the brand owner on eco-friendly practices and processes.  “Be that as it may, we have also shared with them the current sustainability practices and trends in Malaysia. Of course, we will work towards being more eco-friendly,” he noted. Future plans Tan said that Woodpeckers chooses the locations for its stores based on its own research as well data provided by mall owners. “We focus now on high traffic outlets which are usually in large malls. We will get into the secondary neighbourhoods and in shoplot format later. Here, we have access to retail data and surveys by third-party consultants,” he elaborated. While some players have been seeing a dip in demand, Tan is confident that milk tea, including bubble milk tea, is here to stay. “For us, this is the best time to introduce Thai milk tea, especially the authentic ChaTraMue brewed from tea leaves cultivated by our own farms,” he noted.  He hopes the ChaTraMue brand and their ‘boba’ offerings will add more excitement to the milk tea market in Malaysia.  Tan emphasised that the company is still focused on the Malaysian market for now, but as an F&B group, it is always open to bringing in new brands and creating its own brands. Its research and development labs and business development departments are not sitting still. “We take feedback seriously, especially customer feedback. We listen on social media and appreciate direct engagements. We’re also working on an automated feedback mechanism within our processes,” he concluded.