Gong Cha Announces Introduction of Direct Franchising & the Signing of Its First Direct Franchisees

Business Wire
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Gong cha’s first ever direct franchisees in the Americas will bring the premium bubble tea brand to the Las Vegas and Puerto Rico markets

BOSTON, March 19, 2024--(BUSINESS WIRE)--Gong cha, the world’s premier bubble tea brand with over 2,200 locations across 23 countries, is pleased to announce the official launch of its direct franchising program, marking the second phase of its expansion strategy in the Americas. Since 2014, Gong cha has opened more than 225 stores across 20 states, including Washington D.C., and has sold approximately 65% of available territory using an innovative master franchise model. As Gong cha enters its 10th year of franchising in the U.S., the brand will begin offering direct franchising for its remaining U.S. territories, including Hawaii, Arizona, Nevada, Illinois, and Tennessee, amongst others, to further accelerate its rapid growth.

The new direct franchising model will complement Gong cha’s existing master franchise system in the U.S. By originally entering the U.S. market with a master franchise model, Gong cha was able to partner with experienced entrepreneurs with strong knowledge of their region to develop larger territories, which helped to rapidly introduce the brand to consumers, and scale across the country.

Direct franchising will allow experienced partners to begin building markets in parallel—with each fulfilling multi-store, multi-year development plans—further accelerating Gong cha’s U.S. expansion in new territories. In 2023, Gong cha grew its U.S. store count by 19% YOY, opening over 90 locations in the Americas, including over 40 new locations in the U.S. It is projected to grow its Americas store count by over 30% in 2024, adding 130 new locations.

"After many years of inquiries, we’re thrilled to be able to finally offer direct franchise relationships," says Geoff Henry, President of Gong cha Americas. "Over the past two years, our team has built a robust franchise support system—making significant investments in technology, launching a brand marketing fund, and nearly doubling the size of our U.S. team—in order to bolster a growing network of partners."

Gong cha has already begun onboarding experienced multi-unit, multi-brand franchise partners. Direct franchisee, SID Tea LLC, will open the brand’s first ever stores in Puerto Rico. The group of partners—including Jose Vazquez, former Vice President of the Puerto Rico Chamber of Commerce, and former President of ASORE (the Puerto Rico Restaurant Association)—are developers of multiple major franchise brands in Puerto Rico, with more than 180 restaurant locations across the island.

Gong cha’s second direct franchisee, Bruce Park, will open the brand’s first Las Vegas location. Park is currently a partner at JB Investment, LLC, and brings with him years of executive level experience across a variety of industries and investment groups.

In addition to direct franchising, Gong cha will continue to offer master franchise opportunities in select regions, primarily focused in Latin America.

Gong cha is accepting qualified new franchisee candidates to continue its monumental growth across the U.S. and the Americas. For more information on Gong cha’s franchise program, visit https://gongchausofficial.com.

ABOUT GONG CHA

Founded in Taiwan in 2006, Gong cha is the world’s premier bubble tea brand. Its commitment to quality starts with its name: "Gong cha" means to offer the best tea to the emperor from all of one’s possessions. From the most seasoned bubble tea connoisseur to a first-timer, Gong cha offers its customers the ability to customize their beverage to their exact specifications, and never sacrifices flavor or technique. With more than 2,200 locations across 23 countries, it is also one of the fastest-growing bubble tea brands, attracting entrepreneurs across the globe due to its lucrative franchise program. Gong cha was ranked #1 in the Tea category in Entrepreneur magazine’s prestigious Franchise 500® list for the third consecutive year (2024, 2023, 2022); awarded category winner of Top Food & Beverage Franchises in the Global Franchise Awards (2023); and ranked #151 on Franchise Times’ Top 400 List of the largest U.S. based franchise systems by global systemwide sales (2023, 2022 & 2021); ranked #25 on Fast Casual’s Top 100 Movers & Shakers List honoring brands leading the industry (2023); and named one of QSR Magazine’s 17 Best Restaurant Franchising Deals for 2023. For more, please visit gongchausofficial.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240312118475/en/

Contacts

Ashley Martinez, Carbonate
ashley@carbonategroup.com

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