The bubble tea brand looks to grow to 500 locations by 2028.
Bubble tea brand Gong cha has made a move that will significantly increase its size in the U.S. market.
The brand announced that it has acquired the rights to 170 U.S. locations from a master franchisee. While the financial terms of the deal were not disclosed, Gong cha said the acquisition will accelerate franchise development and long-term U.S. growth.
Founded in Taiwan in 2006, Gong cha is one of the fastest-growing bubble tea brands in the U.S and internationally, with nearly 2,200 locations in 33 international markets.
Since 2014 Gong cha has opened more than 240 stores in the United States. across 23 states and Washington, D.C. and Puerto Rico. The brand said it is now on track to exceed more than 500 stores in the Americas by 2028. But Gong cha has also revealed its long-term growth plans for the United States.
“As we continue to grow toward our goal of 1,000 U.S. locations, bringing this territory in-house allows us to further sharpen our development strategy and strengthen support for our franchise partners,” said Geoff Henry, president of Gong cha Americas. “By engaging larger multi-unit developers, we can strengthen our national supply chain network, better manage costs for franchisees and continue improving the digital tools that power both our operations and the customer experience.”
This deal features 13 states including New York, New Jersey, Pennsylvania, Connecticut, Massachusetts, Rhode Island, New Hampshire, Texas, Oklahoma, Florida, North Carolina, South Carolina and Georgia.
In conjunction with announcing the acquisition, Gong cha noted that it continues to make investments in its U.S. infrastructure, including systems designed to simplify its business model for franchise partners.
A new digital system, Gong cha 2.0, was recently introduced. According to the brand, the platform is a refresh of its digital systems, operations, and store design. The aim of the launch is to improve profitability, efficiency and scalability for franchisees while elevating the in-store experience for guests. Moves also include the Super Wu system, named after Gong cha founder Wu Zhenhua, which streamlines drink preparation while enabling greater customization and personalization.
For information about franchise opportunities with Gong cha, visit https://gongchausa.com/franchise-opportunities/.
