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FinanceGong cha signs 50-store franchise deal in Texas, its largest US agreement
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Gong cha, a global bubble tea brand, has signed a 50-unit direct franchising agreement in Texas, its largest such deal. The franchisee, Bakers Acres & Cattle Company, which also operates a dozen Nothing Bundt Cake locations, will develop stores in Houston, Dallas, San Antonio, and Austin over seven years. The deal follows Gong cha's acquisition of 170 US stores from its master franchisee, part of a strategy to accelerate growth toward 1,000 US units. The brand recently redesigned its store layout and added automated drink makers to reduce ticket times. Texas, with its growing metro areas, has become a key target for franchisors, with similar multi-unit deals from Starbird and Oakberry. The 50 new stores represent about one-fifth of Gong cha's current 240-store US footprint.
Source report
Source: Restaurant Dive, an Industry Dive publication Author: Aneurin Canham-Clyne
Dive Brief
- Gong cha has signed a 50-unit franchising agreement in Texas, representing the bubble tea brand's largest direct franchising deal, according to an emailed press release.
- Bakers Acres & Cattle Company, a ranching and real estate firm 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.
- The deal follows Gong cha's acquisition of 170 U.S. locations from its master franchisee several months ago, a move intended to accelerate the chain's growth toward 1,000 U.S. units.
Dive Insight
As consumer demand shifts toward customizable, cold, caffeinated beverages, brands like Gong cha — along with coffee-focused competitors Dutch Bros. and 7 Brew — have experienced significant growth in the U.S. market.
Gong cha aims to sustain and accelerate this momentum through multi-unit franchising agreements.
"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."
The chain recently redesigned its store layout and drink preparation processes, introducing an automated drinks maker that has reduced ticket times by nearly one minute. This operational streamlining is expected to support faster expansion in the U.S.
While 50 units represent a modest share of Gong cha's global system — which includes 2,200 stores across 33 markets — the deal is equivalent to roughly one-fifth of the brand's 240-store U.S. footprint.
Texas, home to several rapidly growing metropolitan areas, has become a key target for franchisors pursuing multi-unit development. Starbird, a premium fast-casual chicken brand, recently signed a 36-unit deal covering the Lone Star state. Late last year, Oakberry, a Brazil-based açaí bowl and smoothie brand, entered a 100-store franchise agreement in Texas.
Recommended Reading
- Gong cha buys 170 US stores from master franchisee
Source
Yahoo FinanceWestern
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Gong cha signs 50-store franchise deal in Texas