Scaling Made Simple: How Gong cha Solves Franchise Owners’ Biggest Challenges

Low Labor, High Margins—Simplified

With almost 20 years of experience in restaurant franchising, Gong cha’s Vice President of Franchise Sales and Development, Mark Treptow, has seen it all.

And after speaking with him, I came away with one big revelation…

Franchise owners need a new playbook.

Between changing consumer habits, tech advancements, and a push for smoother operations, you’ve probably noticed how much the game has changed, especially if you’re a multi-unit franchise owner. 

The restaurant industry is saturated, labor costs keep rising, and the complexity of running something like a kitchen-driven business can feel like a never-ending battle. 

However, holding onto employees has always been a tough nut to crack for restaurants. 

The industry consistently sees some of the highest turnover rates out there—in 2023, the average turnover hit around 74%. 

According to the Bureau of Labor Statistics, folks in food service and accommodation are quitting their jobs at a rate over 5% higher than any other industry, so it’s a challenge that keeps on simmering.

And as you continue to scale, you’re not just looking for another brand to add to your portfolio—you’re looking for a solution.

In this instance, a solution looks like:

• A brand that’s significantly simpler to operate
• Low-cost, high-margin
• Doesn’t require you to reinvent the wheel

It’s all about doing more with less, and Gong cha, the global leader in the bubble tea space, just so happens to check all of those boxes. 

With nearly 2,200 locations across 28 countries, Gong cha isn’t just another franchise opportunity, it’s a proven model designed for scalability, simplicity, and success.  

Before we get into the important role Gong cha is playing in the franchise space, let’s take a step back and understand how it all began.

A Quick History Lesson (I Promise, It’s Interesting)  

Founded in 2006 in Kaohsiung, Taiwan, Gong cha, which means “tribute tea for the emperor” was born from a simple but powerful idea: offering the finest tea, fit for royalty. 

But the story starts a decade earlier, in 1996, when two friends, Huang and Wu, began serving premium teas with a personal touch. 

Their innovative recipes and commitment to quality quickly won over customers, and by 2006, they officially launched the Gong cha brand.  

From its humble beginnings in Taiwan, Gong cha has stayed true to its mission: brewing happiness, one perfect cup of tea at a time. 

So, the next time you sip a Gong cha drink, remember that you’re not just having bubble tea, you’re tasting a legacy that began with the utmost respect for the product you enjoy today. 

Okay, now that you understand the foundation of the brand, let’s pivot back to the product itself.

The Solution: Gong cha’s Winning Formula

I believe that Gong cha is the answer to the challenges many multi-unit franchise owners face in today’s shifting market. Here are 5 reasons why:  

1. Low Labor, High Margins

Unlike traditional restaurants, Gong cha operates with a streamlined, no-cook kitchen model. No hooding, venting, walk-ins, or grease traps. This means lower overhead, fewer operational headaches, and higher profit margins. Think: 2 or 3 employees to run operations instead of 8-10.

2. Simple Operations, Scalable Growth 

Mark Cuban once said, “The simpler the business, the easier it is to scale.” Gong cha embodies this philosophy to a T (no pun intended). With a focus on high-quality, made-to-order beverages, the brand eliminates the complexities of things like food prep while delivering a product that’s in high demand.  

3. Farm-to-Franchisee Supply Chain  

Gong cha’s tea isn’t just any tea—it’s sourced from farms where the leaves are grown slowly, preserving their antioxidant benefits. This commitment to quality ensures that every drink served in your store is fresh, flavorful, and consistent.  

4. Tech-Driven Customer Experience  

Gong cha is investing in technology to elevate the guest experience. From faster service to improved drink accuracy, the brand is leveraging innovation to create a seamless, memorable experience for customers. Imagine a system where drinks are delivered directly to customers, eliminating the need for call-outs and reducing wait times.  

5. Proven Global Appeal with Local Flexibility  

Gong cha isn’t just another tea brand—it’s a global phenomenon with nearly 2,200 locations worldwide. This international success story is built on a model that balances brand consistency with local adaptability. Whether it’s tailoring menu offerings to regional tastes or leveraging local marketing strategies, Gong cha empowers franchisees to connect with their communities while benefiting from a globally recognized brand. This winning combination of global strength and local flexibility makes it a standout choice for multi-unit franchise owners looking to thrive in diverse markets.

This formula has paved the way for a string of successes in 2024, including:

• Launched a direct franchising program, signing first franchisees in Puerto Rico and Las Vegas.  
• Closed a 30-unit deal in Puerto Rico with a multi-brand operator due to rapid market popularity. 
• Partnered with viral brands like FINAL FANTASY XIV ONLINE, Frank’s RedHot®, and Hershey’s for successful campaigns. 
• Introduced trending LTOs (Limited Time Offers) such as Pumpkin Pie and Red Velvet. 
• Opened 230+ U.S. stores across 21 states, Washington, D.C., and Puerto Rico since 2014. 
• Expanding into new territories in 2025, including Washington State, Oregon, and Tennessee. 
• On track to exceed 500 stores in the U.S. by the end of 2025.  

During my discussion with Mark Treptow, it was clear that he’s experienced enough of the changing market to have a genuine understanding of an idea that a lot of franchisors are still figuring out in real-time.

“Some of the bigger multi-unit, multi-brand operators aren’t necessarily leaving brands that are already in their portfolio behind, but they’re not as interested in continuing to build big, full cook kitchens that need eight or 10 bodies to operate,” said Treptow. 

“They’re looking outside of the restaurant space into retail as well as simpler concepts in the F&B industry such as beverage concepts, which don’t require as much in the setup, require simpler operations to run and it’s a lot easier for them to scale.”

Riding the Wave of a Growing Market

To catch a wave, you have to be out in front of it.

The bubble tea market is already huge (worth $2.63 billion in 2024), and it’s only getting bigger.

By 2032, it’s expected to hit $4.78 billion.

So bubble tea is less of a trend and more of a full-blown movement.

After all, tea is the #2 most consumed beverage in the world, second only to water. 

Gong cha is perfectly positioned to continue riding this wave, with a loyal fan base and a reputation as the category leader in the bubble tea space.  

But here’s the kicker: Success leaves clues. 

Gong cha has already cracked the code on delivering high-quality beverages and exceptional guest experiences, with low labor and supply overhead. 

The brand’s global footprint and proven track record make it a low-risk, high-reward investment for franchise owners looking to diversify their portfolios—without the headaches of traditional restaurant operations. 

Geoff Henry, President of Gong cha Americas, expresses his enthusiasm for this continued momentum: “Climbing over 100 spots in the Franchise 500® ranking—and being recognized as #1 in our category by Entrepreneur magazine for the fourth year in a row—is an incredible achievement.” 

“It reflects the tremendous momentum we’ve built as a brand, and the dedication of our franchisees and teams. As we look to 2025, we’re excited to continue innovating, expanding our footprint, and solidifying Gong cha’s place as the global market leader in bubble tea.”

The Gong cha Difference: A Legacy of Excellence

Simply put, if you’re a multi-unit franchise owner looking to add a non-competitive, high-margin brand to your portfolio, Gong cha should be on your shortlist.

With its low labor costs, simple operations, and proven scalability, Gong cha offers a unique opportunity to grow your business without the complexities of traditional models in industries like restaurants.  

It’s also an opportunity to diversify your portfolio, simplify your operations, and maximize your profits with a global brand that’s become synonymous with the bubble tea category.

The wave is continuing to grow—will you be ready to ride it?

Key Takeaways for Multi-Unit Franchise Owners  

• Gong cha is the category leader in the bubble tea segment, with a proven track record of success across 28 countries. 
• The franchise model is built to scale quickly and easily, offering low labor, high margins, and simple operations. 
• Gong cha’s farm-to-franchisee supply chain and tech-driven customer experience ensure quality, consistency, and a competitive edge.  

Interested in learning more? 

Reach out to Gong cha’s franchise team today and discover how you can be part of the bubble tea revolution.