Gong cha has signed a 50-unit franchising deal in Texas, marking the bubble tea brand’s largest direct franchising agreement, according to an emailed press release. This move will significantly expand the chain’s U.S. footprint. The agreement comes after the brand bought 170 stores from its master franchisee in March.
Bakers Acres & Cattle Company, a ranching and real estate company that also operates a dozen Nothing Bundt Cake locations, will develop the tea stores in Houston, Dallas, San Antonio, and Austin over the next seven years, per the press release. The deal is part of Gong cha’s plan to grow to 1,000 U.S. units.
The bubble tea chain has seen significant growth in the U.S. as consumers turn to customizable, cold, caffeinated drinks. Brands like Gong cha and its coffee-based competitors, Dutch Bros. and 7 Brew, have benefited from this trend.
Gong cha is hoping to sustain and accelerate its growth through multi-unit franchising deals. “Franchisees are looking for concepts with operational simplicity, strong consumer demand, and the ability to scale efficiently at relatively low cost,” said Geoff Henry, president of Gong cha Americas.
Gong cha has built a platform designed to help operators grow strategically and sustainably across high-potential markets, according to Henry. The chain recently redesigned its store layout and drinks preparation processes, adding an automated drinks maker that shaved almost a minute off of ticket times. This streamlined process enables the brand to provide faster service to its customers, enhancing their overall experience.
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This simplification of operations could help prepare the brand for faster growth in the U.S. While 50 units is not a large fraction of Gong cha’s global system — 2,200 stores in 33 markets — it is equivalent to about one-fifth of the brand’s 240-store U.S. footprint.
Texas, with its growing metro areas, has become a major target for franchisors seeking multi-unit development. Several brands have been attracted to Texas, including Starbird, a premium fast chicken brand, which recently signed a 36-unit deal covering the state. Oakberry, a Brazil-based açaí bowl and smoothie brand, signed a 100-store franchise agreement in Texas late last year.
The partnership with Bakers Acres & Cattle Company will enable Gong cha to leverage the company’s expertise in real estate and operations, allowing for a more efficient rollout of the 50 units in Texas. This collaboration will also provide opportunities for cross-promotion and brand awareness, as Bakers Acres & Cattle Company’s existing customers will be introduced to the Gong cha brand.
Gong cha’s expansion in Texas will also create new job opportunities and contribute to the local economy. As the brand establishes itself in the state, it will be important for the company to engage with the local community and develop a loyal customer base. By doing so, Gong cha can ensure long-term success and establish a strong presence in the Texas market.
