Core Viewpoint - The company Lele Tea, a brand under the joint venture Cha Tian Catering, is facing challenges due to product quality issues with its new Apple Sugar series, leading to public apologies and immediate corrective actions [1][2][5]. Group 1: Product Issues - Lele Tea received multiple customer complaints regarding its Apple Sugar products, which were reported to not meet quality standards [2][5]. - The company acknowledged the issues, stating that they were due to insufficient preparation and oversight, which affected customer experience [2][5]. - Affected products were promptly removed from shelves, and stores were ordered to rectify the issues, with severe penalties imposed on those with significant discrepancies [2][5]. Group 2: Investment and Ownership - In December 2022, the company received an investment of 5.25 billion yuan from Nayuki Tea, acquiring approximately 43.64% equity in Cha Tian Catering [9][10]. - Cha Tian Catering, established in October 2016, has undergone multiple rounds of financing, with Nayuki Tea being a significant investor [6][8]. Group 3: Expansion Plans - Lele Tea aims to expand its store count from approximately 392 to over 1,000 by the end of 2024, with plans to open 600-800 new stores across at least 70 cities [3][12][14]. - Despite the ambitious expansion goals, recent reports indicate that the company may struggle to meet its target of 1,000 stores by the end of 2024 [3][14]. - The company has also introduced a new franchise model to accelerate growth, focusing on smaller store formats in various regions [12].
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