As the global bubble tea market heats up, Taiwanese brand Gong cha is taking an unconventional approach to growth — moving beyond saturated city centers into regional Australia, aggressively expanding across the US, and innovating its menu with trendy new offerings.
Regional Australia: Unlocking Untapped Potential
While many bubble tea brands battle for space in Australia’s major cities, Gong cha is zeroing in on regional towns with growing appetite for high-quality beverages.
With 172 stores nationwide and eight more planned by year-end, Gong cha recently opened a store in Bathurst, New South Wales — a regional location that has quickly become one of the company’s top 20 performers, according to Lili Shi, Company Director at Gong cha Australia.
Shi told QSR Media, “That was unexpected because it’s not a big city—it’s very localised. This shows the great potential in regional stores.”
Future Australian expansion plans include targeting towns like Toowoomba and Dubbo, contingent on securing suitable real estate.
Beyond traditional storefronts, Gong cha is also exploring micro-store formats at high foot-traffic locations such as universities, airports, and train stations. Its compact store at Martin Place Metro, opened late last year, has seen “really good foot traffic and has been performing really well,” Shi said.
Innovation on the Menu: Premium Mocktails with Brown Brothers
Gong cha recently launched a unique mocktail range in partnership with heritage Australian wine label Brown Brothers, featuring alcohol-free Moscato-infused tea drinks.
Shi explained the concept: “We saw the chance to create something sophisticated and fun that can be enjoyed with friends and totally on trend… but still costs under $10.”
Currently, these mocktails are sold as fixed recipes to preserve their intended flavour balance, with plans to introduce customization and additional toppings like gummy bears or fruit pieces depending on customer feedback.
US Expansion: Multi-Unit Franchise Growth in Arizona and Non-Traditional Venues
In the US, Gong cha is accelerating growth through key franchise partnerships. The Taiwanese bubble tea giant recently inked a multi-unit franchise agreement with Blu Tea Arizona to open new stores in Tempe, Mesa, and Chandler, expanding its presence in the western US.
This move supports Gong cha’s ambitious goal to reach 500 US locations by 2028.
Fernando Ochoa, President of Blu Tea Arizona, shared: “We were looking for a category leader with strong demand, a premium product, and a scalable model. Our success with Gong cha in other markets gives us confidence to scale quickly in Arizona.”
Complementing this growth, Gong cha appointed Michael Nedelkovich Jr. as Vice President of U.S. Non-Traditional Franchise Development. Nedelkovich brings extensive experience growing F&B brands in airports, stadiums, casinos, and amusement parks — environments ideal for engaging Gen Z and Millennial consumers through impulse purchases.
Nedelkovich said, “These venues provide high visibility and scalable, multi-unit growth potential where consumer demand for innovative beverages continues to rise.”
Global Footprint and Forward Strategy
Founded in 2006, Gong cha now boasts over 2,200 outlets worldwide in 28 markets, with strongholds in the US, Australia, and Asia. Its Americas portfolio spans Mexico, Puerto Rico, Honduras, and franchise agreements are in place for Central American expansion.
The company continues to pioneer new formats and flavors to stay ahead of consumer trends while pursuing targeted geographic growth.
What This Means for Franchise Investors
Gong cha’s dynamic strategy demonstrates how F&B brands can thrive by combining regional expansion, menu innovation, and non-traditional venue growth. For investors, this represents an exciting opportunity to partner with a brand poised for both local relevance and global scale.
At Star Brands Consulting Group, we assist entrepreneurs and investors in exploring high-potential franchise opportunities like Gong cha worldwide, offering guidance on market entry, site selection, franchise application, and operational best practices.
Interested in Gong cha franchise opportunities or the broader bubble tea market? Contact us!