Gong cha tea franchise is a global business opportunity. In 2015, the company began franchising operations. The Gong Cha’s success can be explained by an extraordinary idea to combine authenticity with a modern franchise business model. Furthermore, the franchisor has extensive experience running a profitable and proven business prototype, which they share with their franchisees. 

This tea is sourced from the best Taiwanese tea estates, and it comes with its signature milk foam topping. Not only that, but Other items include freshly brewed tea and pearls (tapioca) that are cooked to perfection every four hours. The company’s strict quality control code ensures that only the highest quality ingredients are used. So, if you’re looking for a quick bubble tea franchise opportunity, take a look at the information below.

 

 

What is Gong Cha Bubble tea?

Gong Cha, a Taiwan-based bubble tea drink company, was founded in 2006 in Kaohsiung, Taiwan, and is positioned in the bubble tea industry, which is an entertainment drink for people of all ages. The brand name is made up of the Chinese characters “gong (贡),” which means contribution or tribute, and “cha (茶),” which means to tea, and it translates to “Tribute tea for the Emperor.” The brand offers approximately sixty different high-quality and healthy beverage options, which are divided into seven categories: house specials, brewed tea, milk tea, “Creative Mix,” coffee, “Healthy Series,” and ice smoothies. 

It follows a strict quality control code to ensure that only the best ingredients are used. This franchise has a consistent product innovation culture. When new franchise joins the company, they are given training and assistance with all business processes at a low cost. With such a strong tradition of excellence, you can join a great brand with limitless opportunities.

 

Is Gong Cha A franchise opportunity? 

From 2020 to 2026, the bubble tea industry is expected to grow at an 8.9% compound annual growth rate (CAGR). The food and beverage industry generates a total of $164 billion in value-added. Gong Cha first appeared in the United States in 2013. It has grown and gained acceptance steadily since then. Following its initial expansion to Hong Kong the same year it was founded, Gong Cha began expanding internationally in 2012, including South Korea, Australia, and the United States.

Gong Cha has over 1,650 cafes in 20 different countries. Currently, the majority of stores in the United States are located in the Northeast and the South. It has now gone global, with a presence in several countries, including the United States. Gong Cha franchisees must compete with businesses that sell tea drinks, blended juice drinks, smoothies, and other similar products.

 

Gong Cha franchise

 

Facts That Nobody Told You About Gong Cha

1. It is a popular and popular Taiwanese tea franchise with over 2,000 locations worldwide.

2. Gong Cha is known for its unique and flavorful teas.

3. Gong Cha is also known for its generous portions and affordable prices.

4. Gong Cha has a loyal following, and its teas are often recommended by tea experts.

5. Gong Cha’s tea franchise has been growing rapidly, and it is estimated that the company will be worth over $1 billion.

 

Gong Cha Franchise Review and Information  
Industry Type   Food Franchise Opportunities
Sub Category   Bubble Tea Franchises
Year Established   2006
Company Name   Gong cha Global Ltd 
Founder/Management Head   Martin Berry, Global CEO
Franchising Started    2009
Employees at Company H.O   More than 50
Franchise Expansion Plan   United States, Canada, and Taiwan
Number of Units   2,022 (as of 2023)
Number of Franchise Units   1,661
Social Media Handles   Facebook
    Twitter
    Youtube
    Instagram
Company Office location   c/o TA Associates, 200 Clarendon St., #5600Boston, MA 02116

 

Gong Cha Franchise Requirements

 

1. Franchisees must be thrilled to be a part of a growing industry and to be associated with a leading brand.

2. The candidate must be able to capitalize on their entrepreneurial drive using a globally proven system.

3. Determined and goal-oriented

4. Willing to go above and beyond for their visitors

5. Committed to providing guests with premium bubble tea

6. Dedicated to gong cha service

7. Recognizes industry opportunities

 

 

How much does a Gong Cha franchise cost

 

In the United States, a standard Gong Cha bubble tea franchise in the United States will cost between $177,430 – $335,400. 

The standard fee is $41,000. The royal fee will be approximately 5.5% of gross sales. The advertising and marketing fee will be up to 2% of the gross revenue. 

  • Gong Cha Master Franchise Cost is  $188,200 and $684,500, 
  • Gong Cha Share is  $115,000 and $515,000 
  • Royalty Share to Gong Cha is 3% out of 5.5 % Royalty fees

The cost to franchise a Gong Cha for smaller kiosk concepts can start as low as $3,000, and for a full-service restaurant can reach up to $ 1 million.

 

Gong Cha Initial and On-Going Franchise Cost
Gong Cha Franchise Fee $41,500
Gong Cha Franchise Cost $177,430 – $335,400
Royalty Fee 5.5%
Advertising Fee Up to 2%
Term of Agreement 10 years
Is the franchise term renewable? Yes
Renewable Franchise Fees 50% of Initial Franchise fees

 

Gong Cha Training To Franchises

Gong Cha offers specialized training in critical areas of its operations. The initial training program includes 19 hours of classroom instruction and 111 hours of on-the-job training, and franchisees must complete a comprehensive training program. Training is also accompanied by a quarterly audit system. This aids in the quality and efficiency of store operations. The training is as per the franchise training manual.

 

Gong Cha Bubble Tea Operations and Support

It has created a tried-and-true franchise system that will support you in every way. The company offers you an event support system. As a franchisee, you can help promote your business by using a centralized marketing strategy as well as localized marketing. Raw materials are supplied to franchise outlets by a dedicated logistics department. Local warehousing reduces inventory delivery time, thereby increasing cost efficiency.

 

 

What is the Gong Cha Term of Agreement and Renewal?

The Gong Cha franchise’s initial term length is 10 years or 5 years. If franchisees are performing as expected, they are eligible for renewal. Existing franchise owners can renew for an additional ten years or five years during the renewal process.

 

Does Gong Cha provide Financial Assistance to Franchises?

The firm does not offer direct financing. The franchisor cannot provide any lease or note obligation in exchange for the franchisee guarantee. As long as the company has an investor relationship, third-party financing can be provided to cover start-up costs, inventory, equipment, payroll, and accounts receivable. SBA financing for the purchase of a franchise may be available.

It is approved by the Small Business Administration and is listed in their franchise directory.

Before you buy this, I strongly recommend that you explore franchise insurance and franchise loan options. The franchise financing options can be explored on websites such as OnDeck, SmartBiz, ApplePie Capital, credibility, and Funding Circle. Some good franchise insurance options include Nationwide, Travelers, Liberty Mutual, Progressive, State Farm, Hiscox, and The Hartford.

 

Pros & Cons of Gong Cha bubble tea Franchises

When thinking about taking the plunge and opening your own, there are a few things to keep in mind. Here are some pros and cons to consider:

 

Pros of owning a Gong Cha franchise 

1. Rapidly Expanding Beverage Market

2. The franchises receive multifaceted support

3. Tea is made with high-quality ingredients.

4. Available master franchise opportunity

5. Establishing a supply chain will aid owners’ operational ease.

6. 600 possible drink combinations provide customers with a diverse range of options.

 

Cons of owning a Gong Cha franchise 

1. Marketing and royalty fees are higher in comparison.

2. A wide range of menu options can make store operations difficult.

3. The franchise fee varies according to location.

 

 

How much do Gong Cha franchise owners make?

There is no definitive answer to this question as it depends on a variety of factors including the amount of time and effort a franchise owner puts into the business, the location and size of the franchise, and the number of open locations. However, a typical starting salary for this owner is around $50,000, and the average salary can range from $70,000 to $100,000.

 

What is Gong Cha bubble tea franchise profit?

It has not shared the Average Unit Volumes or franchise profit in Item 19 of the latest franchise disclosure document.

 

Expected Annual Gong Cha Unit Sales
Average Per Product $ 4.0
Daily Products Sold 250
Expected Daily Sales $ 1000
Expected Weekly Sales $7000
Expected Weekly Sales $ 30,000
Expected Annual Unit Sales $ 360,000

 

We shall estimate this Gong Cha franchise profit and years to recoup the investment (ROI).

 

AUV Estimated Annual Profit (12.5%) Estimated Annual Profit (15%) Estimated Annual ProfitProfit (18%)
$ 360,000 $ 45,000 $ 54,000 $ 64,800
Recoup $376,400 8.36 years   7 years 5.8 years

 

The estimated profit is in the range of $ 45,000 to $ 64,800 and it will take 5.5 to 8 years to recoup the investment. As per industry standards, it is a very high term to get a return on the franchise investment.

 

Are the Gong Cha franchises profitable?

 

Yes, Gong Cha franchises are profitable and as per our assumptions and estimates above.

I will reach out to Gong Cha’s management team to get these sales figures and update this article accordingly. You can also ask current franchisees of Gong Cha for their franchise’s review and input on revenue and profit.

 

Gong Cha franchise owners’ reviews

Its reviews are positive, with many customers praising the tea and the unique brewing methods. Some reviewers note that the tea can be a bit expensive, but overall most reviewers are happy with their experience.

I always advise my readers to visit and meet Gong Cha’s current franchise owners to ask questions and reviews.

Below are a few franchisee reviews from the Gong Cha website, I request the existing franchises to comment on this article with your feedback and reviews.

 

 

Gong Cha Franchise Rankings

It is a popular fitness franchise with locations in many major U.S. cities. It is:

 

Franchise Deck Analysis and Overview

Since its inception as a franchise in 2013, Gong Cha has grown to over 1600 locations. The expected market for bubble tea is rapidly expanding, as is this type of tea business. One of the best tea franchises was taken by the Gong Cha. More than 600 teas are available on their menu, allowing customers to customize their tea experience with the flavors of Taiwan. Gong cha sub-franchisees benefit from their premium products, brand commitment to service, and the company’s franchising system built on quality above all else from Asia to the United States.

Outside of in-store opportunities, sales opportunities exist. As a result, Gong Cha provides franchisees with an events support system to help them capitalize on available opportunities. Feedback is critical for franchise operations. Gong Cha understands this and handles all dispatch complaints and issues. Gong Cha franchises promote your business as a franchisee by using a centralized marketing strategy as well as localized marketing. 

As a result, your company will receive the recognition it deserves. In the logistics department, Gong Cha is in charge of streamlining raw material supply to franchise outlets. Overall, I believe this is a fantastic opportunity to seize if you are interested in a bubble tea franchise.

On the other hand, I found the Gong Cha Bubble tea franchise for sale at BizQuest. The Gong Cha franchise resale price is $ 99,000 and the annual revenue of $ 220,000. The cash flow is $ 50,000, which is 22% and it is above our estimated Gong cha franchise profit margin of 12.5 to 18%.

This seems to me like a Kiosk or in-store location with low franchise costs and ongoing costs. This franchise business is based in Gwinnett County, U.S. state of Georgia.

 

Gong Cha franchise

 

Competition Analysis and Alternatives of Gong Cha Franchising

 

  Cost to Franchise Fran Fees Royalty + Ad fees Expected Profit Recoup of Capital FD Rating
Sharetea franchise $386,900 to $492,200 $ 48,000 6%+ 2% $ 45,000 to$ 64,800 5.8 to 8.3 years 3.7/5.0.
Ding Tea Franchise $123,000to $422,000 $ 20,000 4%+ 2% $ 57,600 6 to 8 years 3.3/5.0.
Kung Fu Tea Franchise $124,050 to $428,050 $37,000 4% +2% $ 65,000- $ 100,000 4 to 6 years 3.5/5.0
Boba Time Tea Franchise $389,100 to $531,700 $ 40,000 5% +2% $ 96,867 to            $ 134,123 3 to 5.5 years 4.0/5.0.
Gong Cha Franchise $177,430 to$335,400 $41,500 5.5% + 2% $ 45,000 to $ 64,800 6 to 9 years 3.7/5.0.
Happy Lemon Franchise  $309,000 to $509,000. $25,000 to$40,000. 7% + 2% $ 50,625 to$ 72,900 6 to 9 years 3.6/5.0.

 

The rating for the Gong Cha franchising is 3.7/5.0.

 

 

Conclusion

 

As an appealing franchise opportunity, Gong Cha is rapidly expanding in the bubble tea industry in the United States. As one of the industry’s most well-known bubble tea brands, Gong Cha can help you build a more solid customer base. Despite the low initial investment, the rewards are not as promising if you plan to invest for a short period. However, we expect Gong Cha to provide a high return on investment in the long run.

Entrepreneurs who want to open a franchise in the bubble tea franchise opportunities categories can look at 

  1. Kung Fu Tea Franchise 
  2. Boba Time Franchise
  3. Happy Lemon Franchise 
  4. Sharetea Franchise 
  5. Black Rifle Coffee Franchise
  6. Tropical Smoothie Cafe Franchise
  7. Ding Tea Franchise
  8. Best Bubble Tea Franchise
  9. Clean Juice Franchise
  10. Moge Tee Franchise
  11. Teaspoon franchise

 

Synopsis of this article All About Gong Cha franchises.

 

Published On: August 31st, 2022 / Categories: Blog, Bubble Tea Franchises, Home /

6 Comments

  1. Chris February 23, 2023 at 6:01 am - Reply

    Gong Cha is a popular franchise that serves delicious bubble tea drinks. They offer a range of delightful tea flavors and toppings, which are customizable to customers’ preferences. Gong Cha has quickly become a favorite among bubble tea lovers due to their high-quality drinks and friendly service.
    Their drinks are made with fresh ingredients and no preservatives, giving customers a healthy and delicious option for a quick beverage.

  2. Emily February 23, 2023 at 6:03 am - Reply

    Gong Cha has locations in many countries, making it easy for people to find a store wherever they are. The franchise also offers catering services for special events, making it a great option for any gathering. Gong Cha is continuously innovating, introducing new flavors and drinks to their menu. They also offer loyalty rewards for customers who frequently purchase their drinks.

  3. Scalett February 23, 2023 at 6:04 am - Reply

    They are committed to using only the highest quality ingredients and making sure their drinks are always freshly brewed. Gong Cha offers a wide variety of bubble tea flavors and toppings, allowing customers to customize their drinks to their own tastes. All of their drinks are also available in a variety of sizes, making it easy to fit everyone’s budget.
    Gong Cha is dedicated to providing a fun and social atmosphere in all of their stores.

  4. Rune February 25, 2023 at 6:43 am - Reply

    Gong Cha has established itself as one of the leading bubble tea franchises in the world.The quality of their drinks, as well as their customer service, has been consistently praised. Gong Cha uses fresh ingredients, such as real tea leaves, and their drinks are made to order.The variety of drinks that Gong Cha offers is extensive, ranging from classic bubble teas to seasonal drinks.

  5. pete February 25, 2023 at 6:44 am - Reply

    Gong Cha has a loyal following of customers, which is a testament to the quality of their products.
    Gong Cha’s prices are very reasonable, making their drinks accessible to a wide range of customers.
    The chain has also opened stores in various countries all over the world, making their products available to a global audience.
    Gong Cha has a unique and fresh take on the classic bubble tea, with a variety of flavors and combinations.

  6. Algenis February 25, 2023 at 6:46 am - Reply

    Gong Cha’s customer service is top-notch, always ensuring that customers have a pleasant experience.
    Gong Cha has a wide variety of toppings and add-ons that can be used to customize drinks even more. The franchise has recently rolled out a rewards program for customers, offering benefits and discounts for loyal customers.
    Gong Cha has become a popular destination for fans of bubble tea, with a wide selection of drinks and flavors.
    Gong Cha is constantly innovating, introducing new drinks and specials to keep their customers satisfied.

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