Franchising

Gong cha opening 60 locations in Louisiana, Colorado, Michigan

Provided

March 10, 2022

Taiwan-based Gong cha, a bubble tea brand with over 1,670 locations worldwide, has signed three master agreements to bring 60 locations over the next five years to Louisiana, Colorado and Michigan.

Daniel Tsang, Ping Wen Bai, Ashraf Salem and Abdel Raouf Mousa will open the stores in Louisiana; Nam Vo and Phuong ("Mindy") Thai are the franchisees in Colorado, and Robert Song will oversee the openings in Michigan.

"We look forward to welcoming many new business owners who are ready to realize the untapped potential of these new markets," Andrew Sternburg, Gong cha's chief development officer, said in a company press release. "The strength and global appeal of this brand, paired with the rapidly growing popularity of bubble tea in the US, makes this an exciting opportunity for potential franchisees."

Gong cha, which has over 150 U.S. stores, will exceed 500 by 2025, according to the release.

Bubble tea is a rapidly growing category in the beverage/fast casual space: Orders of "bubble milk tea" shot up 505% during the first half of 2021, according to Grubhub, and the global bubble tea market is projected to reach $3.39 billion by the end of 2027, according to Fortune Business Insights Report.

Globally, Gong cha's store count grew 17% year-over-year from 2020-2021. In the U.S., yearly store growth has nearly tripled since 2018, and it will open its first five corporate-owned U.S. stores this year in the Chicago area.