Bain Capital will acquire the global bubble tea chain Gong cha, taking over a network of roughly 2,200 stores worldwide, including about 240 locations in the United States, according to a press release on Wednesday.
Deal details and timeline
The transaction involves buying Gong cha from TA Associates, the private‑equity firm that purchased the brand in 2019. Financial terms were not disclosed. The acquisition is slated to close in the fourth quarter of this year.
Gong cha’s expansion in the U.S. has accelerated recently. In March, the chain reported roughly 240 domestic stores. It also bought 170 outlets from its former master franchisee, a move intended to tighten control over American operations.
In addition, the company signed a 50‑store direct franchising agreement in Texas, its largest such deal to date. The expansion aligns with a broader goal of reaching 1,000 U.S. units.
Operational upgrades under the brand
Gong cha has been modernizing its stores through a “Gong cha 2.0” rollout. The redesign includes new layouts and an automated drinks‑making system that can cut service time by up to a minute. The system is already in use at 250 locations.
The brand also overhauled its North American supply chain, shifting from master‑franchise agreements toward direct franchising relationships with operators. These changes are meant to standardize operations and improve efficiency.
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Naofumi Nishi, a partner at Bain Capital, said the chain has “a distinctive and globally recognized brand with a loyal customer base and franchisee economics that are among the strongest in the sector.” He added that there is “substantial room to grow both in the Asia‑Pacific region and in the Americas.”
Compared with earlier private‑equity activity in the restaurant space, this purchase reflects a pattern of larger firms targeting fast‑casual concepts that have proven scalable. Recent acquisitions, such as the Brazilian steakhouse Fogo de Chão in 2023, show a willingness to back brands that can leverage franchising to expand quickly.
The bubble‑tea market has seen heightened competition, but Gong cha’s emphasis on technology and direct franchising may give it an edge. By controlling more of the supply chain and reducing service times, the brand can potentially improve margins and attract new franchisees.
Industry observers note that private‑equity interest in food‑service assets has remained strong through 2026. Recent deals include Freeman Spogli’s purchase of Philz Coffee, TriArtisan Capital’s acquisition of Denny’s, and LongRange Capital’s $1.5 billion buy of Pizza Hut’s non‑China business. The Gong cha transaction adds another high‑growth, consumer‑focused brand to that list.
While the exact valuation remains private, the move signals Bain Capital’s confidence in the bubble‑tea segment’s growth trajectory. The firm’s track record of scaling restaurant concepts suggests it will likely invest in further store openings and possibly explore additional technology upgrades.
Gong cha’s recent supply‑chain overhaul and store‑automation efforts are already live in a quarter of its locations. If the new ownership can sustain that momentum, the brand could see a marked increase in unit counts across both existing and new markets.
