Gen Z And Gen Alpha are Driving Demand for the Bubble Tea Franchise
How does a franchise brand become a category leader? In the case of the Gong cha bubble tea franchise, it was a combination of creating a quality product and offering a simple, streamlined business model.
With more than 2,200 locations spanning 30 countries (including 240 in the U.S.) Gong cha has turned Taiwan’s bubble tea into a global favorite.
Bubble tea, also called boba tea, is a sweet drink that originated in Taiwan in the 1980s. It’s usually made with black or green tea, milk, sugar and chewy tapioca pearls known as boba. The pearls sit at the bottom of the cup and are enjoyed through a wide straw.
Vice President of Franchise Development Mark Treptow saw the brand’s potential immediately. “When I was looking for my next career move, I didn’t want to start with a brand that was like all the rest. I was looking for the next category leader,” Treptow says. He’s worked with top franchise brands including Five Guys and The Halal Guys, so he knows the restaurant business. “I’ve never seen anything built to scale in food and beverage quite like Gong cha,” he says.
Becoming a Category Leader
Gong cha’s origins trace back to Taiwan in the late 1990s, when founder Zhen-Hua Wu started blending teas. By 2006, those experiments had become a full-fledged brand. Within a few years, Gong cha expanded into the U.S.
“We’re the largest bubble tea brand outside of China, and we’re the category leader,” Treptow says.
The name carries meaning. “Gong cha roughly translates to tea served up for the emperor,” Treptow says. That sense of heritage is ingrained in the brand’s high standards. “Our tea is the highest quality and its source comes from farms that we control. The pearls come from us as well,” he says. “Each cup is brewed fresh, and every batch of pearls is produced daily.”
Operations are lean. Stores are under 1,000 square feet and can run with just two employees per shift. “We’re low labor, we’re high margins … a no-cook kitchen. We don’t have hoods, ventilation or grease traps to worry about. There’s nothing to it,” Treptow says. “The simpler the business, the faster and wider you can scale.”
Gong cha’s digital kitchen is central to its success. A smart machine affectionately nicknamed “Super Wu” after the company’s founder handles about 80% of the drink-making process in roughly 20 seconds. Customers order via kiosks or with staff, scan a QR code and the system kicks in to maintain speed, consistency and control.
Scaling the Bubble Tea Franchise
Although Gong cha started out awarding single-unit franchises, it now partners with experienced business owners who can scale multiple units. “From my seat, I’m interested in selling each market one time the right way to the right groups,” Treptow says.
To support innovation, Gong cha operates more than 100 corporate stores globally and uses those locations to test new products and systems. “You can’t throw it all on franchisees and let them be guinea pigs,” Treptow says. “We have to get it right from the start.”
Appealing to Gen Z
Treptow sees Gong cha’s future in Generation Z, (born between 1997 and 2012) and Generation Alpha, (born from about 2013 to 2025). “Kids are going away from their parents’ coffee habits,” Treptow says. “They’re also drinking less alcohol than our generation did at that age. Tea is the second-most consumed beverage in the world after water. I could pull 100 people between 14 and 29 off the street, and I don’t think I’d get a single ‘no’ to whether they know bubble tea,” Treptow says. “And it has universal appeal. Regardless of cultural background, it offers something for everyone.”
Customization is another big draw for the bubble tea franchise. Gong cha offers more than 600 drink combinations and a diverse menu. Beyond classic milk teas and pearls, customers can choose from fruit teas, smoothies, milk-foam-topped drinks, seasonal specials and more. Each order can be customized: Pick your tea base, sweetness level, ice amount and add toppings such as pearls filled with tapioca, popping boba filled with juice, jelly cubes or foam.
This kind of flexibility isn’t just fun, it’s a smart business move. Consumers increasingly expect personalization in their food and drinks. NielsenIQ reports that demand for customizable beverages is growing worldwide. In fact, Forbes reports that companies that excel at personalization can see a 6-10% boost in growth.
For Gong cha, that means each location can adapt to local tastes while giving customers the chance to create something uniquely their own. With its innovative offerings and simple business model, Treptow believes the sky is the limit for Gong cha. “We’re boiling water and making tea, and we’re selling it at close to a Starbucks price point. It’s a very, very simple business to run, and the simpler the business, the faster and wider you can scale.”
Learn more about the Gong cha bubble tea franchise opportunity.
