Master Franchisees Tap Gen Z Consumers with Bubble Tea Franchise
- Father-daughter franchise owners are leading a regional expansion of a modern bubble tea brand.
- As Gong cha master franchisees, they are scaling a beverage-first model across the Pacific Northwest.
- The concept is designed to appeal to Gen Z consumers through customization, technology and late-night hours.
- Digital ordering, efficient kitchens and flexible locations support long-term franchise growth.
Relaxing with a cup of tea might conjure up images of older folks sinking into their sofas after early-bird dinners, or sipping Earl Grey over cucumber sandwiches. But Ajay and Prachi Keshap, a father-and-daughter master franchisee team, are betting their Pacific Northwest Gong cha tea empire on a much younger demographic: Generation Z.
Also known as “Zoomers,” the Gen Z cohort was born between 1997 and 2012, making them between 14 and 29 years old, and seemingly young for ancient Asian tradition. But then, Gong cha has modernized tea-time by digitizing the customer experience and turning Taiwan’s unique bubble brew into a personal cup, as well as a global phenomenon.
With nearly 2,200 locations in 33 international markets, Gong cha is synonymous with its staple bubble tea, a brew of black or green tea, milk, sugar and chewy tapioca pearls known as boba that sit at the bottom of the cup (you sip them through a wide straw). The Keshaps brought Gong cha to the Pacific Northwest last fall with a flagship store in Seattle’s Capitol Hill neighborhood — and they aspire to open 50 more locations in Oregon, Washington and Idaho over the next five years.
Gen Z Consumers
Gen Z consumers play a critical role in that plan. “Gen Z is driving real change in franchising. They’re customers as well as trendsetters,” says Prachi, who will oversee the Capitol Hill shop.
While Millennials might have been digital pioneers, Gen Z was born into a high-speed internet, smartphone-dependent, social-media-posting world. “Gen Z wants a seamless experience,” says Prachi. “They expect to customize their orders, place them easily on their phones or at digital kiosks, and connect with brands through social media. While past generations may have focused more on convenience or price, Gen Z is looking for real connection.”
The Capitol Hill shop targets a younger crowd with customized drinks, snacks, and late-night hours. It’s open until 2 a.m., Sunday through Thursday, and until 4 a.m. on Fridays and Saturdays.
“Gen Z consumers grew up with endless options at their fingertips. That shapes how they approach food and drinks. Social media amplifies things, making younger consumers even more influential,” says Ajay. “Brands that adapt can lock in loyalty from a generation that’s just starting to form lifelong habits and build tech-enabled, resilient operating models for the future.”
It was Prachi who first noticed the popularity of bubble tea, and she thought her father’s master franchise experience as a multi-unit, multi-brand (MUMBO) operator would make him an ideal partner. Ajay holds a portfolio of more than 50 restaurants across the region, including the highest-grossing Dave’s Hot Chicken in the world. Prachi’s business strategy background in retail and supply-chain management rounds out their comprehensive expertise.
“I introduced Gong cha to my dad because I’d seen how my friends and I connected with bubble tea, both as a customizable drink and social experience,” says Prachi, a Zoomer herself. “I saw how much potential there was to engage Gen Z, an audience with significant spending power and potential for long-term loyalty.”
Father-Daughter Franchisees
The father-daughter partnership has its own advantages. Family businesses may have more staying power and earning potential than other companies. According to Family Enterprise USA, 74% of family businesses stay in business for 30 years or more. Meanwhile, Deloitte’s Global Family Business Insights Series estimates that their annual revenue is expected to rise 84% between 2020 and 2030, outpacing the 59% growth in non-family businesses.
As with any franchise, low costs equal high margins. Gong cha offers no-cook kitchens, “Super Wu” smart machines that handle about 80% of the drink-making process, and digital ordering. “Gong cha tends to be more efficient than traditional quick-service models, says Ajay. “Shops require only a moderate capital investment and minimal buildout. Equipment costs are low thanks to good use of space and limited food prep. Most ingredients have a long shelf life, which keeps waste down. With low cost of goods and high markups, the model supports strong profitability.”
Because it’s a beverage-first company with limited equipment, Gong cha adapts well to airports, malls, and college campuses. “That flexibility paired with lower product costs help drive stronger margins than many traditional restaurants,” says Ajay. “There’s still upfront investment in systems and training, but concepts like this are much easier to scale and replicate in new markets.”
In Seattle’s Capitol Hill, Gong cha appears right at home. “Capitol Hill is where people are always looking for new food and drink experiences,” says Prachi.
Ajay backs her vision in the brand and target customer. “Gen Z’s influence isn’t just about what they’re spending now, it’s about shaping the brands that will define the next generation of consumers,” he says. “For operators, this means shifting portfolios beyond legacy names to capture a generation that has significant spending power and the potential for long-term loyalty.”
Learn more about the Gong cha bubble tea franchise opportunity.
