Gong cha brewing big bubble tea growth in Texas

One of the world’s largest Bubble Tea brands has struck a big deal in Texas.

Gong cha reported that it has reached an exclusive area development deal with Bakers Acres & Cattle Company (BACC).

The agreement calls for the development of 50 locations and is the largest direct franchising deal in the company’s history. Key markets slated for development through the agreement include Austin, Houston, San Antonio, and Dallas.

“As Gong cha continues expanding across the U.S., we’re seeing strong interest from multi-unit operators looking to grow with the global leader,” said Geoff Henry, president of Gong cha Americas. “Franchisees are looking for concepts with operational simplicity, strong consumer demand and the ability to scale efficiently at relatively low cost, and Gong cha delivers on all of these.

“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 like Texas,” Henry added.

Based in Houston, BACC is a multi-generational business led by Brett and Wendi Walker. The company entered franchising in 2015 through the Nothing Bundt Cakes brand and is looking to expand to 12 locations after building a successful operation across the greater Houston market.

According to Gong cha, BACC brings experience and expertise in finance, real estate, technology, and business development.

“With its premium positioning, operational sophistication, and strong consumer loyalty, Gong cha immediately stood out as the right brand to grow with across Texas,” said Brett Walker. “Over the past decade, our family has built a highly disciplined multi-unit operating platform, and we know sustainable growth starts with the right systems, infrastructure and brand foundation. Gong cha brings all of that together in a category with tremendous long-term potential.”

Overall, Gong cha has nearly 2,200 locations in 33 international markets. Gong cha began franchising in the United States about two years ago. Since then, the brand has grown to more than 240 locations in 24 states, Washington, D.C., and Puerto Rico.

The agreement in Texas follows Gong cha’s move in May to acquire the franchise rights to 170 U.S. locations in 13 states from a master franchisee. This includes locations in New York, New Jersey, Pennsylvania, Connecticut, Massachusetts, Rhode Island, New Hampshire, Texas, Oklahoma, Florida, North Carolina, South Carolina and Georgia. The Southeast accounts for about 30% of Gong cha’s U.S. locations.

Gong cha was founded in Taiwan in 2006 and its brand name means “to offer the best tea to the emperor from all of one’s possessions.” The franchise reports that it is on track to have as many as 500 U.S. locations by 2028.