The news is out – Liptons Tea place at Koramangala is closing down. My previous post talked about the location and a few things related. As of 1st may 2006 HLL has withdrawn the franchisor status from their first tea shop outlet in India, leaving the franchisee in a lurch. Strange as it may sound unlike the other coffee shop outlets like Barista nad Cafe Coffee Day that started their first outlets in the city, which was run and operated by themselves, HLL had given out their first outlet, the Lipton Tea Place to be run by a franchisee.
I have my doubts if HLL had lent any support to the LIpton Tea place to ensure its success at all. In a fiercely competitive market like Bangalore, I doubt if a franchisee can take a concept like a tea place and keep absorbing losses without any help from the franchisor. If it is true I hope this would be a lesson for anyone wnting to partner HLL with their future ventures as a franchisee.
Marry Brown would probably be a replacement at the site. Hopefully this should come through. Its a great location with tremendous potential for growth if marketted properly and am sure Marry Brown or any one else coming there would succeed.