Gong cha plans big expansion in Texas
Taiwan-based bubble tea chain Gong cha is continuing its U.S. expansion plans in a big way.
The company has signed a 50-unit exclusive area development agreement in Texas with franchise operator Bakers Acres & Cattle Company (BACC). The agreement marks the largest direct franchising deal in Gong cha history and further expands the company’s U.S. footprint. The brand entered the U.S. in 2014 and now operates more than 240 locations across 23 states.
Under the deal, BACC will further develop Gong cha’s presence across four major Texas markets over the next seven years, including Austin, Houston, San Antonio and Dallas. Led by Brett and Wendi Walker, BACC entered franchising in 2015 with Nothing Bundt Cakes in the Houston area and is moving towards 12 bakery locations.
“With its premium positioning, operational sophistication, and strong consumer loyalty, Gong cha immediately stood out as the right brand to grow with across Texas,” said Brett Walker. “Over the past decade, our family has built a highly disciplined multi-unit operating platform, and we know sustainable growth starts with the right systems, infrastructure and brand foundation. Gong cha brings all of that together in a category with tremendous long-term potential.
Since launching direct franchising efforts in the U.S. roughly two years ago, Gong cha has signed deals to expand in Texas, California, Massachusetts, Arizona, Wisconsin, Puerto Rico and more.
At the start of this year, Gong cha launched its “Gong cha 2.0 initiative,” which it calls a “comprehensive digital, operational and design refresh to optimize profitability, efficiency and scalability for franchisees." Gong cha said the initiative combines two key technologies — beverage automation and self-order kiosks — with a modernized store design to streamline operations, reduce labor demands and improve customer experience.
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“As Gong cha continues expanding across the U.S., we’re seeing strong interest from multi-unit operators looking to grow with the global leader,” said Geoff Henry, president of Gong cha Americas. “Franchisees are looking for concepts with operational simplicity, strong consumer demand and the ability to scale efficiently at relatively low cost, and Gong cha delivers on all of these. From our flexible footprint and efficient labor model to the strength of our global brand recognition, we’ve built a platform designed to help operators grow strategically and sustainably across high-potential markets like Texas.”
Founded in Taiwan in 2006, Gong cha operates nearly 2,200 locations in 33 international markets.
