Gong Cha is preparing to expand its presence in Texas after signing a franchise agreement to develop 50 new stores across the state, marking the largest direct franchise deal in the bubble tea chain’s history.
The agreement with Houston-based franchise operator Bakers Acres & Cattle Company (BACC) will see the new locations open over the next seven years, focusing on the Austin, Houston, San Antonio and Dallas metropolitan areas. The expansion will nearly double Gong Cha’s footprint in Texas from its current 35 stores.
The deal comes several months after Gong Cha acquired the master franchise rights for 170 US stores across 13 states, including Texas, as part of a strategy to transition to a direct-franchising model and accelerate growth in the US.
“As Gong Cha continues expanding across the US, 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.”
BACC currently operates Nothing Bundt Cakes locations in the Greater Houston area and said Gong Cha’s streamlined operations and growing consumer appeal made it a strong fit for its portfolio.
Founded in Taiwan in 2006, Gong Cha operates nearly 2200 stores across 33 markets worldwide, including more than 240 locations in the US. The company aims to expand its Americas network to more than 500 stores by 2028 through additional franchise partnerships.
