Gong cha's Steep Climb: Inside the Bubble Tea Giant's Winning Formula

BOSTON, MA – January 14, 2026 – In the hyper-competitive world of franchising, global bubble tea brand Gong cha has demonstrated a remarkable ascent, climbing 39 spots to #142 in Entrepreneur magazine’s prestigious 2026 Franchise 500® list. The achievement is compounded by the company retaining its title as the #1 franchise in the Tea category for an impressive fifth consecutive year, cementing its status as a dominant force in the rapidly growing specialty beverage market.

This significant jump, following a 115-spot leap the previous year, is not a matter of chance. It reflects a meticulously executed strategy combining a scalable operational model, savvy marketing that resonates with a new generation of consumers, and an aggressive, multi-pronged expansion plan. The company's rise offers a compelling case study in how to brew success in a crowded industry.

“Earning #1 in our category for the fifth consecutive year—and climbing over 150 spots in the Franchise 500® ranking in just two years—reinforces the strength and trajectory of the Gong cha brand,” says Geoff Henry, President of Gong cha Americas. “It reflects a business that’s growing with intention, and a franchise network that’s deeply invested in long-term success.”

The Franchise Formula for Success

Gong cha’s consistent recognition is underpinned by the very metrics Entrepreneur magazine evaluates: unit growth, financial stability, and brand power. The brand’s success hinges on a business model designed for simplicity and scalability, making it an attractive proposition for potential franchisees. The initial investment for a Gong cha store can range from approximately $175,000 to over $600,000, but the model is engineered for efficiency.

Unlike many food service operations, Gong cha shops require a moderate capital investment and often a minimal buildout, with flexible formats ranging from small kiosks to larger flagship stores. Equipment costs are kept low due to limited food preparation requirements. Furthermore, the operational model minimizes waste, as most ingredients, such as premium teas sourced from Asia, have a long shelf life. This combination of low cost of goods and high margins creates a financially appealing structure for owner-operators.

Beyond the financials, the company provides robust corporate support. Franchisees are integrated into a fully developed supply chain that ensures access to high-quality, authentic ingredients shipped directly from Taiwan. This central pillar of support is crucial for maintaining the brand's core promise: premium quality. Every store prepares tea and tapioca pearls fresh throughout the day, offering customers a highly customizable experience with over 600 possible combinations of toppings, ice levels, and sweetness. This commitment to quality and personalization is a key driver in a global bubble tea market projected to exceed $6 billion in the coming years, fueled by consumer demand for unique and tailored beverage options.

Marketing Beyond the Bubble

While a strong operational backbone is essential, Gong cha’s explosive growth is also powered by its mastery of modern marketing. The brand has successfully tapped into the cultural zeitgeist, particularly with Gen Z and Millennial consumers, through strategic collaborations and high-profile endorsements.

In 2025, the company made a significant move by signing Felix from the global K-pop sensation Stray Kids as its global brand ambassador. This partnership was a masterstroke in authentic engagement. Felix, a known fan of the brand, brought his massive social media following and cultural influence, sparking viral trends like the “Felix Drink Challenge” among his millions of followers. The campaign included exclusive merchandise that sold out rapidly and even featured Felix's voice guiding customers at ordering kiosks in Korea, creating a unique and personal brand interaction. This strategy leverages the immense power of K-pop fandoms to drive both brand awareness and sales.

This was not an isolated tactic. The brand has consistently pursued culturally relevant partnerships. A collaboration with LINE FRIENDS minini introduced a new, smaller “mini pearl” and was promoted with a digital billboard in New York's Times Square. Another partnership with the iconic Peanuts® brand celebrated its 75th anniversary with themed drinks and collectible merchandise, blending nostalgia with the modern appeal of bubble tea. These campaigns demonstrate a sophisticated understanding of how to create buzz, engage diverse audiences, and transform a beverage purchase into a cultural experience.

Conquering New Frontiers, One Cup at a Time

Gong cha's ambition is reflected in its aggressive global expansion. With nearly 2,200 locations in 33 markets, the brand's footprint is growing at an accelerated pace. In 2025 alone, it opened over 230 new stores worldwide and entered new markets including Mongolia, Colombia, and Thailand.

In the U.S., the expansion has been equally vigorous. The brand recently established a presence in new states like Tennessee, Wisconsin, and Arizona, bringing its U.S. total to over 240 stores across 23 states, Washington, D.C., and Puerto Rico. The company is on a clear path to exceed 500 stores in the Americas by 2028.

A key component of this growth is a strategic push into non-traditional venues. The 2025 opening of a location at the iconic Atlantis Paradise Island resort in The Bahamas serves as a blueprint for this strategy. Targeting high-traffic areas like resorts, airports, and university campuses allows the brand to reach a captive, global audience and build brand visibility on an international scale. The flexible and efficient operational model is particularly well-suited for these often space-constrained, high-volume environments.

As the global bubble tea market continues its upward trajectory, Gong cha has positioned itself not just as a participant, but as a leader shaping the industry's future. Through a potent combination of a franchisee-friendly business model, culturally attuned marketing, and a relentless drive for expansion, the brand is ensuring its tribute tea is served to an ever-expanding empire of loyal customers.