Let’s talk about the growing popularity of tea. 

And when I say tea, I don’t mean your grandma’s Lipton either. 

I’m talking about bubble tea, the drink that’s taken over Instagram feeds, college campuses, and city streets worldwide. 

And while some still view bubble tea as a trend that will come and go… 

The actual numbers tell a different story.

For starters, tea is the #2 most consumed beverage globally, and bubble tea isn’t just holding strong, it’s still growing!

And after climbing over 100 spots in the Franchise 500® ranking then being recognized as #1 in their category by Entrepreneur magazine for the fourth year in a row…

Gong cha has become the category leader that’s not just riding the tea wave, they’re owning it.

With premium, handcrafted drinks, a model built for scale, and a market that’s only getting thirstier, Gong cha is the franchise opportunity multi-unit owners should be eyeing.

So, why now? Why Gong cha? And why should you care? Let’s dive in.

Understanding the Market Forces Driving Bubble Tea’s Growth

The sustained success of bubble tea is far from accidental. 

Several powerful consumer trends have converged to create ideal conditions for brands like Gong cha:  

Changing Beverage Preferences

Younger demographics are moving away from traditional coffee and alcohol consumption, seeking alternatives that offer both flavor and experience. 

The rise of “sober curious” consumers has created demand for social drinking options that don’t necessarily revolve around alcohol.  

Global Palates, Local Appeal  

Today’s consumers have more adventurous tastes than ever before. Food and drink IQs alike have simply become more sophisticated.

Where previous generations might have stuck to basic tea or coffee, modern customers actively seek international flavors like taro, matcha, and brown sugar. 

Gong cha’s menu of 600+ combinations meets this demand for variety and discovery.  

With that many options, you could try a new flavor combination every day for over a year 

(if you wanted)!

The Experience Economy 

Bubble tea shops have become gathering places—the modern equivalent of coffeehouses for younger generations. 

The visual appeal of the drinks and the customizable nature of orders make them inherently shareable on social platforms, which helps drive organic marketing.  

Health-Conscious Formulations  

With options for reduced sugar, plant-based milk, and fresh ingredients, bubble tea can potentially fit with contemporary wellness trends while still feeling like an indulgence, depending on how you tweak it.  

Industry projections support these observations, with the global bubble tea market expected to grow at a CAGR of 7-9% through 2030. 

This isn’t a flash in the pan, it’s the maturation of a new beverage category.  

The Operational Advantages for Multi-Unit Franchisees

For experienced operators looking to diversify their portfolios, Gong cha offers several compelling advantages that translate directly to the bottom line:  

Streamlined Operations  

Unlike many food service concepts that require extensive kitchen equipment and skilled labor, Gong cha’s model centers on simple preparation techniques. 

The core process involves brewing tea and assembling drinks—operations that can be mastered quickly and don’t require culinary expertise. 

This translates to:  

• Lower labor costs (stores can operate with 1-2 staff during slower periods)  
• Reduced training time and turnover challenges  
• Minimal food safety concerns compared to perishable ingredients  

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Get the tea 🧋

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Predictable Demand Cycles 

Beverage concepts benefit from multiple dayparts and consistent purchase patterns. 

Unlike repair-based or appointment-driven businesses that rely on problems occurring, Gong cha enjoys:  

• Daily and weekly repeat customers  
• Multiple peak periods throughout the day  
• Strong takeaway and delivery potential  

Real Estate Flexibility 

The concept works across various formats:  

• Compact kiosks in high-traffic areas  
• Inline locations in shopping centers  
• Non-traditional venues like airports and universities  

This flexibility allows operators to optimize their real estate strategy based on market conditions.  

Strong Unit Economics  

With average ticket prices often exceeding coffee shops and high-margin add-ons (like boba pearls or cheese foam), Gong cha locations can achieve:  

•  Healthier gross margins than many food concepts  
•  Faster break-even timelines  
•  Strong cash flow potential  

For operators managing multiple brands, these characteristics make Gong cha an attractive complement to more labor-intensive or capital-heavy concepts in their portfolios.  

Gong cha’s Strategic Position in the Market 

What truly sets Gong cha apart in a competitive landscape? Three key differentiators:  

Vertical Integration  

Unlike competitors relying on middlemen, Gong cha cultivates direct relationships with tea growers across Asia. 

This farm-to-cup approach guarantees premium leaf quality while insulating the brand from supply chain disruptions—a critical advantage when 72% of consumers cite taste/flavor consistency as their top reason for beverage loyalty.

Proven Global Footprint  

With over 2,200 locations spanning 28 countries and 240 locations here in the US, Gong cha has mastered the delicate balance of local adaptation and brand consistency. 

Whether in Toronto or Taipei, customers experience the same signature milk foam quality while enjoying market-specific innovations like regional fruit flavors or seasonal specials.

Innovation Pipeline 

Gong cha’s R&D team delivers a drumbeat of new offerings that transform occasional customers into regulars. 

Beyond predictable seasonal rotations, the brand surprises fans with limited-time collaborations (like their wildly popular gingerbread boba) and permanent menu additions informed by real-time sales data across continents.

Conclusion: A Timely Opportunity in a Growing Category  

The beverage landscape has no signs of slowing down anytime soon, and Gong cha has positioned itself at the intersection of several powerful trends. 

For multi-unit operators, the combination of operational simplicity, strong unit economics, and category growth potential makes this an opportunity worth serious consideration.  

As consumer preferences continue shifting toward experiential, globally-inspired beverages, Gong cha’s model offers a scalable way to participate in this movement without the complexities of traditional food service. 

The question isn’t whether bubble tea has staying power—the market has answered that. 

The real question is whether you’re positioned to benefit from its continued growth.  

Learn More About Gong cha Franchising

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Gong cha is the category leader for a reason…