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Antonius said all affected individuals had since been back paid but said he could “never guarantee” Chatime was no longer underpaying staff.

“What I can guarantee is that we have improved systems, everything from time and attendance platforms through to audited payroll processes, through to spot checks on visas. So we’ve got improved process and discipline,” Antonius said.

“But can I guarantee that [underpayments are no longer happening]? I couldn’t do that, because with 100-something locations, an error can happen. But have we gotten improved systems and rigour? Absolutely,” he said.

Antonius, who was appointed chief executive in 2015, confirmed Zhao was still involved in the business and said while Chatime did not dispute the underpayments, it disputed the ombudsman’s allegations against him.

“We’re not aligned on the approach that the FWO has taken in relation to identifying Charlley as the architect of this, and that’s why it’s still going through the courts,” Antonius said.

Law firm Piper Alderman partner Joe Murphy is representing Zhao, who is fighting the allegations that he was a “person involved” in the contraventions.

“The managing director is defending this on the basis that he was not a person involved in the contraventions, within the meaning of the legislation,” Murphy said in a statement.

In a Federal Circuit Court meeting on Monday, Judge Nicholas Manousaridis ordered that judgment be reserved in the matter. Manousaridis is expected to announce his decision in the coming weeks.

Chatime also faced legal action from reusable cup brand KeepCup for selling a cup in supermarkets packaged with the words “KEEP CUP”, revealed by this masthead in February this year. Antonius said the matter had been settled outside the courts for an undisclosed sum.

The bubble tea chain has grown its customer base through distinct marketing such as its recent “Satisfy Your Strange” campaign and its brand collaborations including Barbie, Red Bull, and more. In the coming months, Chatime will unveil partnerships with lollipop brand Chupa Chups and launch a strawberry and cream product and a grape product, two flavours that Antonius said were globally trendy.

While Chatime is founded, headquartered and listed in Taiwan with over 2500 stores around the world, the Australian business punches above its weight as the biggest Western market. In 2022 Antonius was handed responsibility of growing New Zealand and US operations.

In conjunction with the Taiwanese parent company, the Australian business is also co-leading a global review of the bubble tea chain’s brand, which Antonius said needed to be refreshed to remain relevant for the next generation of consumers, and will reassess the brand’s tone, personality, imagery, and menu.

As part of the global brand review, Chatime is considering entering into new categories such as smoothies and low-sugar options. While Chatime will “never be a coffee brand”, Antonius said cold brew was emerging as a strong trend in Europe and North America that the chain “could have a lot of fun with”.

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