Global bubble tea brand Gong cha has acquired the rights to 170 U.S. locations from a master franchisee, a move the company says will bring its regional operations in-house to accelerate national expansion.
The acquisition covers 13 states, including New York, New Jersey, Pennsylvania, Connecticut, Massachusetts, Rhode Island, New Hampshire, Texas, Oklahoma, Florida, North Carolina, South Carolina and Georgia. The consolidation is part of a broader strategy to reach 1,000 U.S. locations.
Strengthening national infrastructure
By taking control of these territories, the company aims to standardize its support for franchise partners and simplify its development strategy.
“As we continue to grow toward our goal of 1,000 U.S. locations, bringing this territory in-house allows us to further sharpen our development strategy and strengthen support for our franchise partners,” Geoff Henry, president of Gong cha Americas, said in a company press release.
Henry added that the move allows the brand to engage larger multi-unit developers, consolidate its national supply chain and improve the digital tools used for operations and customer service.
Modernizing operations
The acquisition comes alongside the rollout of “Gong cha 2.0,” an operational update designed to improve profitability and store efficiency. A central component of this initiative is the “Super Wu” system, a proprietary drink preparation process designed to increase speed and allow for greater beverage customization.
Gong cha has been heavily focused on infrastructure improvements over the past three years, seeking to simplify its business model to help franchisees focus on guest experience.
Growth and market
Gong cha operates more than 240 locations across 23 states, Washington, D.C., and Puerto Rico. The brand, which was founded in Taiwan in 2006, holds a global footprint of nearly 2,200 stores across 33 markets.
Source: Fast Casual
