Dive Brief:
- 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.
- 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 comes several months after Gong cha acquired 170 locations in the U.S. from its master franchisee in a deal meant to speed up the chain’s growth to 1,000 U.S. units.
Dive Insight:
As consumers turn to customizable, cold, caffeinated drinks, brands like Gong cha and its coffee-based competitors, Dutch Bros. and 7 Brew, have seen significant growth in the U.S.
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. “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.”…