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Tag: Gong Cha

  • Gong Cha Steers Growth With Major Leadership Shake-Up Across Key Global Markets

    Gong Cha Steers Growth With Major Leadership Shake-Up Across Key Global Markets

    Popular bubble tea franchise, Gong Cha, has recently undergone a significant restructuring of its top-tier management. This move is intended to bolster the company’s framework, enabling it to better support continued growth across its principal markets.

    New Leadership Assignments

    Keaton Myburgh, who joined Gong Cha in 2023, has been appointed as the new General Manager for the Asia-Pacific region (APAC). In his time with Gong Cha, Myburgh has shown exceptional leadership in assisting franchise partners and managing regional operations. His new role will extend his responsibility to ensuring operational excellence, regional development, and brand consistency across the APAC region.

    For the Europe, Middle East, and Africa (EMEA) region, Gong Cha has appointed Jemma Smoker as the General Manager. Smoker, who also joined the company in 2023, will assume responsibility for overseeing regional operations and the development of the brand within the region.

    Marketing Team Expansion

    On a similar note, Gong Cha has also broadened its marketing team. Sepanta Bagherpour has taken on the role of Chief Marketing Officer for the Americas and EMEA regions. Bagherpour brings to the table over two decades of experience in marketing and communications, working with global brands.

    Moreover, Gong Cha has announced the promotions of Maya Murasawa and Jina Jeeyoung C. Murasawa will now serve as the Head of Marketing in Japan while Jeeyoung C has been named the Chief Marketing Officer for South Korea and APAC. These appointments underscore Gong Cha’s commitment to customer-focused, locally relevant marketing strategies.

    These reshuffles come on the back of the company’s launch of Gong Cha 2.0, a global revamp of the company’s business model. This new model aims to bolster efficiency across its franchise network.

    Questions & Answers

    What is the goal of Gong Cha’s recent leadership restructuring?
    Gong Cha has reshaped its senior leadership team to strengthen its organizational structure and support its growth across key markets.

    Who are the newly appointed leaders in Gong Cha’s team?
    Keaton Myburgh has been appointed as the General Manager for the APAC region and Jemma Smoker for the EMEA region. Sepanta Bagherpour has joined as the Chief Marketing Officer for the Americas and EMEA. Maya Murasawa and Jina Jeeyoung C have been promoted within the marketing department in Japan and South Korea and APAC respectively.

    What is Gong Cha 2.0?
    Gong Cha 2.0 is a global update to the company’s operating model aimed at improving efficiency across its franchise network.

  • Gong Cha Launches ‘Super Wu’ Automated System in Revolutionary 2.0 Global Model Upgrade

    Gong Cha Launches ‘Super Wu’ Automated System in Revolutionary 2.0 Global Model Upgrade

    Gong Cha, a globally recognized tea brand, is introducing significant updates to its business model, labeled Gong Cha 2.0, that will enhance efficiency across its franchise locations.

    The New Operating Model

    The highlight of Gong Cha 2.0 is Super Wu, an innovative, automated beverage-making system designed for repetitive duties and real-time operation tracking. Following a successful trial period of over two years at 40 outlets in 13 different countries, the company is ready to roll out Super Wu on a larger scale.

    The upgrades are not just confined to the beverage-making system. Newly built and remodeled stores will also implement self-ordering kiosks and updated store layouts, aiming to quicken service, alleviate labor pressures, and boost digital ordering and customer loyalty programs.

    Redesigned Stores and Enhanced Efficiency

    The brand’s revamped store designs will embody open layouts, digital menu displays, and more streamlined configurations at the back of the house. Despite the changes, the brand assures that their focus will remain on offering customized tea beverages.

    Super Wu and the digital kiosks are expected to improve efficiency significantly, enabling staff to shift their attention from monotonous tasks to engaging with customers. Geoff Henry, president of Gong Cha Americas, explained how the new technology has made onboarding easier for franchisees, reduced pressure during peak times, and freed up more time for customer interaction.

    About Gong Cha

    Established in Taiwan in 2006, Gong Cha has rapidly expanded its footprint to almost 2200 outlets in 33 markets worldwide, including over 240 locations in the United States.

    Questions & Answers

    What is Gong Cha 2.0?
    Gong Cha 2.0 is a global update to the operating model of Gong Cha, aiming to improve efficiency across its franchise network with enhanced technology and revamped store designs.

    What is Super Wu?
    Super Wu is an automated drink-making system that performs repetitive tasks and provides real-time operational data. It is a part of the Gong Cha 2.0 update.

    What changes will Gong Cha 2.0 bring to the stores?
    Gong Cha 2.0 will introduce self-ordering kiosks, updated store layouts, digital menu displays, and a more efficient back-of-house configuration. These changes aim to speed up service, ease labor demands, and support digital ordering and customer loyalty programs.

  • Gong Cha Hits Thailand with Bold Expansion: Bubble Tea Giant Targets 100 New Stores in Latest Global Growth Surge

    Gong Cha Hits Thailand with Bold Expansion: Bubble Tea Giant Targets 100 New Stores in Latest Global Growth Surge

    Gong Cha, a leading global bubble tea brand, has recently launched its first concept store in Thailand. The new establishment is a result of a collaboration with Perfect Step, a local master franchisee and a subsidiary of Thai Outdoor Group.

    Strategic Location and Expansion Plan

    The new Gong Cha outlet is strategically located on the third floor of the Beacon Zone in CentralWorld. This store is the first move in an aggressive expansion plan, with the brand aiming to establish up to 100 stores across Thailand in the near future.

    Embracing Technology and Authenticity

    Every proposed Gong Cha outlet will present the brand’s Gong Cha 2.0 design. This modern and innovative design incorporates technology to enhance service speed and adaptability while maintaining the brand’s commitment to serving authentic whole-leaf teas.

    Focused on Global Expansion

    The Thailand launch is another milestone in Gong Cha’s ambitious global expansion plan. The brand recently made its foray into Colombia and aims to establish 10,000 outlets worldwide over the next decade. Gong Cha isn’t just focused on Asian markets; the brand will soon open its first Caribbean outlet at Atlantis Paradise Island.

    Accelerated US Expansion

    In the United States, Gong Cha is rapidly expanding its footprint through multi-unit franchise agreements in Milwaukee, Portland, and Nashville. The bubble tea brand has set a target of surpassing 500 locations across the country by 2028. To achieve this goal, Gong Cha is actively seeking top-tier franchise partners in regions including Southern California, Nevada, Utah, and the Southeastern US.

    Return to the Singapore Market

    Gong Cha had to exit the Singapore market after its franchise agreement with Gong Cha Singapore, which had been operating the brand since 2017, came to an end. However, Gong Cha Global has announced plans to re-enter the market next year.

    Currently, Gong Cha operates 2,200 locations in 30 international markets.

    Questions & Answers

    What is Gong Cha’s expansion plan for Thailand?
    Gong Cha plans to open up to 100 stores across Thailand.

    What is unique about the new Gong Cha outlets in Thailand?
    The new Gong Cha outlets in Thailand will feature the brand’s Gong Cha 2.0 design, which blends technology and authenticity, enhancing service speed and adaptability while staying true to authentic whole-leaf teas.

    What is Gong Cha’s expansion goal in the United States?
    Gong Cha aims to surpass 500 locations across the US by 2028 through multi-unit franchise agreements.

  • Gong Cha Exits Singapore Market After Franchise Agreement Ends; Plans For A Revamped Return Underway

    Gong Cha Exits Singapore Market After Franchise Agreement Ends; Plans For A Revamped Return Underway

    Taiwan’s popular milk tea brand, Gong Cha, has ceased operations and shuttered all its outlets island-wide as of October 1. This move follows the expiration of its franchise agreement with Gong Cha Singapore, which has been running the brand’s operations since 2017.

    All the physical stores were abruptly closed, and the brand’s digital presence was also taken down, including its website, social media accounts, and listings on food delivery platforms.

    Kang Puay Seng, Gong Cha Singapore’s CEO, confirmed these developments, expressing his gratitude to customers, staff, and business partners for their support.

    Future Prospects

    Gong Cha’s Global has confirmed plans to re-enter the Singapore market next year. The global CEO, Paul Reynish, stated that the company is currently in the process of selecting a new master franchisee and will relaunch with an updated ‘Gong Cha 2.0’ store concept, which has already been successfully implemented in select international markets.

    Gong Cha initially entered the Singapore market in 2009 but later withdrew due to a franchise dispute. The brand then re-entered the market under a new agreement with its now-former franchisee.

    The decision to exit the Singapore market follows a period of strong global performance for the brand. Earlier this year, Gong Cha reported an impressive US$600 million in system-wide sales for the 12 months ending in December, a milestone attributed to its aggressive international expansion.

    Questions & Answers

    What is the reason for Gong Cha’s exit from the Singapore market?
    Gong Cha’s exit from the Singapore market followed the end of its franchise agreement with Gong Cha Singapore.

    Will Gong Cha return to the Singapore market?
    Yes, Gong Cha Global has announced plans to re-enter the Singapore market in the coming year with a new master franchisee and an updated ‘Gong Cha 2.0’ store concept.

    What has been Gong Cha’s performance in the past year?
    Gong Cha reported strong global performance, with system-wide sales reaching $600 million for the 12 months ending in December. This success is mainly attributed to the brand’s rapid international expansion.

  • Stray Kids’ Felix Tapped As Global Ambassador For Gong Cha Bubble Tea In Strategic Bid For Gen Z

    Stray Kids’ Felix Tapped As Global Ambassador For Gong Cha Bubble Tea In Strategic Bid For Gen Z

    Taiwanese bubble tea company Gong Cha has announced the enlistment of Felix, a member of the renowned South Korean group Stray Kids, as their global brand ambassador.

    Gong Cha Launches New Campaign

    The brand aims to bolster its global presence with a campaign featuring Felix, set to roll out in Korea in June before making its way to the United States. Gong Cha believes that Felix’s personal experience with their bubble tea, coupled with his love for the product, will serve as an effective introduction of the brand to his global fan base.

    Felix’s Role as a Brand Ambassador

    As a global ambassador, Felix is expected to boost Gong Cha’s brand recognition through high-visibility marketing campaigns showcasing the company’s signature beverages. This partnership is part of Gong Cha’s strategic move to reach out to Generation Z consumers via culturally significant marketing initiatives.

    Gong Cha’s Collaborative Ventures

    In addition to partnering with Felix, Gong Cha has recently teamed up with Line Friends Minini and Final Fantasy XIV. These collaborations aim to attract new consumers to the brand’s offerings, expanding the customer base.

    Questions & Answers

    How will the brand utilize Felix’s association with Gong Cha?
    Felix will be leveraging his global popularity to boost brand awareness through high-profile marketing campaigns featuring Gong Cha beverages.

    What is Gong Cha’s strategy for reaching out to new audiences?
    The company’s strategy involves forging connections with Generation Z customers via culturally significant marketing campaigns and collaborations with popular entities like Line Friends Minini and Final Fantasy XIV.

    What is the significance of Felix’s personal experience with Gong Cha’s products?
    Felix’s personal affinity for bubble tea, and his positive experiences with Gong Cha, are expected to resonate with his global fan base, thereby serving as an effective brand introduction to potential new consumers.

  • Taiwanese bubble tea chain Gong Cha hits US$600m in global sales

    Taiwanese bubble tea chain Gong Cha hits US$600m in global sales

    Taiwanese bubble tea chain Gong Cha has reached US$600 million in global system sales for the 12 months ended December, driven by its rapid global expansion.

    Group revenue also rose 12 percent year-on-year to US$190 million as the brand expanded operations in Japan, South Korea, and the US.

    The company opened 240 new stores and entered five new markets: Saudi Arabia, Morocco, Mauritius, Honduras and Puerto Rico. Gong Cha now operates 2162 stores across 28 countries.

    “It’s been a fantastic year for Gong Cha,” said Paul Reynish, global CEO. “We’ve invested heavily in our supply chain and operations, expanded our footprint through new stores and geographies, and focused on making our existing stores more efficient and profitable for our franchisees.”

    The company recently introduced a new store format, Gong Cha 2.0, alongside a digital kitchen system that features ordering kiosks and automated drink machines.

    The brand also launched several marketing campaigns, including a high-profile collaboration with Final Fantasy XIV and limited-time drink offerings, resulting in more than 1.3 billion media impressions last year.

    “Looking ahead, we see huge potential for Gong Cha to become a global brand,” Reynish added.

    Founded in Taiwan in 2006, Gong Cha relocated its global headquarters to London in 2019. The company plans to enter at least six new markets this year and reach 10,000 stores globally by 2032.

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  • Chinese tea chain Mixue opens its first Australia outlet

    Chinese tea chain Mixue opens its first Australia outlet

    Chinese tea chain Mixue has launched in Australia, opening its first store in Sydney’s World Square shopping centre.

    Two more locations are imminent in Brisbane and Melbourne.

    The Sydney store features floor-to-ceiling windows spanning an entire wall and red steel frames.

    A marketing campaign by Mixue offering “1000 Sydney students to have a drink for free” was launched for the brand’s Sydney launch. Mixue said that although the pricing will be different to that in its home market, the quality will not change.

    Founded by Zhang Hongchao in 1997, Mixue Ice Cream and Tea opened its first overseas store in Vietnam in 2018 and currently has 600 stores in 11 Asian countries and 21,000 stores in China.

    With several milk tea companies expanding into the market during the past two years, Australia is a promising destination for the sector.

    Global milk tea giant Gong Cha last year said it planned to add 17 new stores to its existing 118 locations in Australia and both Gotcha and Chatime recently said they planned to prioritise the market.

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  • Global milk tea chain Gong Cha will add 17 stores in Australia

    Global milk tea chain Gong Cha will add 17 stores in Australia

    Global milk tea chain Gong cha is planning to expand in Australia with a further 17 stores this year.

    That’s adding to the 118 stores already operating.

    The plan for growth is part of a bigger international expansion goal, which sees the business focus on development in countries such as Japan, Mexico, New York, and the Philippines.

    Around the world Gong Cha had 1661 stores at the end of 2021, including 90 new outlets opened in Japan. The growth represents a 17 percent rise from the previous year.

    Also this year, another 25 stores planned to open under the guidance of the New York master franchise. South of the border in Mexico the plan is to almost double the number of stores to 51; while the Philippines store count is expected to grow by another 34 new milk tea venues.

    The Gong cha brand was founded in Taiwan in 1996 and is now owned by the Gong Cha Group, headquartered in London.

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  • Gong Cha secures private-equity investment to boost global expansion

    Gong Cha secures private-equity investment to boost global expansion

    International private equity company TA Associates will take an undisclosed stake in fast-growing bubble-tea chain Gong Cha.

    The investment is being made through TA Associates’ Hong Kong office, with settlement expected in early October. The value of the investment has not been revealed.

    Gong Cha’s South Korean operator will also participate in the capital raising.

    Gong Cha has more than 1000 stores in 17 countries, including South Korea, Japan, Taiwan, the Philippines, Malaysia, Mexico, Australia, Canada, Vietnam, the UK and the US. The company was founded in 2006 in Kaohsiung, southern Taiwan.

    Edward Sippel, an MD at TA Associates and co-head of Asia operations of TA Associates Asia Pacific, said his company’s involvement in the brand will help grow the Gong Cha brand in new and existing markets.

    “Gong Cha [is] a high-growth business that is among the world’s most-recognized tea brands. We are incredibly impressed with how successfully the management team has grown Gong Cha into such a profitable, global business. We will work closely with management in supporting the company’s franchise partners to further Gong Cha’s strong business model,” said Sippel.

    Gong Cha’s main offering, Taiwanese-style bubble tea, is sweet milk tea infused with pearl-shaped tapioca. The company also offers a variety of seasonal and specialty tea-based drinks. Through a primarily franchise model, Gong Cha reaches consumers through a variety of retail store formats, including urban and suburban stores, as well as take-out shops, mall-based stores and kiosks, often in high traffic areas such as train and metro stations.

    “We welcome TA Associates as investors in Gong Cha,” said Euiyeol Kim, CEO of the Gong Cha Group. “With its scale, large capital base and global footprint, TA is an ideal partner for Gong Cha at this stage in our growth. TA offers the truly deep global resources and experience that will help us further strengthen our market position and allow us to even more effectively build our leading global tea brand.”

    Peter Rodwell, newly appointed executive chairman of Gong Cha, said the brand’s success was the result of the management team’s persistent customer-centric focus on quality, innovation and service.

    “I am confident that with TA’s long history of building value in growing businesses, we are poised to bring Gong Cha’s quality tea products to many more consumers around the world.”

    Rodwell joins Gong Cha with more than 30 years of retail food-and-beverage and franchising, including leading McDonald’s expansion across Asia-Pacific and the Middle East.

    Michael Berk, an MD at TA Associates, said the global tea market has enjoyed steady growth over the past several years, and milk tea, including bubble tea, remains a staple beverage across Asia and increasingly around the world.

    “Globally, the tea market is estimated to be larger than that of coffee, with continued expected growth. Given these market dynamics, we believe that Gong Cha is very well-positioned to further expand the company’s presence and brand throughout the world.”

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  • Gong Cha to open world’s first bubble-tea funhouse

    Gong Cha to open world’s first bubble-tea funhouse

    Gong Cha will team up with Tokidoki to create the world’s first bubble-tea funhouse at Singapore Shilin night market.

    The Tokidoki-themed bubble-tea funhouse will bring three new flavours including Rosa Latte, Berry Biscotti, Bambu Boba, served in Tokidoki co-branded cups.

    Boba enthusiasts can also treat themselves to bubble tea-inspired desserts such as Boba Pancake, and Earl Grey Milk Tea Ice Cream.

    There will also be two limited-edition Tokidoki x Gong Cha-merchandised tumbler and sleeve for the first 500 customers daily.

    At a DIY station, customers can customise their own drinks.

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  • Gong Cha bubble tea could fetch US$442 million

    Gong Cha bubble tea could fetch US$442 million

    South Korean private equity firm Unison Capital is selling its Gong Cha bubble tea franchise in a deal likely to fetch up to US$442 million.

    The company purchased the brand four years ago for KRW34 billion ($30 million), before taking over its global headquarters in Taiwan in a KRW40 billion ($35.45 million) deal in 2017. The brand’s HQ operates stores in 16 countries.

    The offer has attracted interest from major South Korean F&B players, considering the brand’s stable cash flows and EBITDA margin of 24–25 per cent, compared with Starbucks’ 21 per cent.

    The brand runs 448 outlets within South Korea, and derives 70 per cent of its sales from directly managed stores within Korea and Japan. The firm plans to expand its global store count from 900 to 1700 by 2021, expanding into 10 more countries during the period – with concrete plans to establish stores in the UK, Mexico, Thailand, Indonesia and Cambodia.

    Sales are forecast at KRW180 billion ($159.54 million) this year, compared to KRW134 billion ($118.77 million) last year.

  • Unison Capital could bag US$442 million for Gong Cha deal

    Unison Capital could bag US$442 million for Gong Cha deal

    South Korean private equity firm Unison Capital is selling its Gong Cha bubble tea franchise in a deal likely to fetch up to US$442 million. The company purchased the brand four years ago for KRW34 billion ($30 million), before taking over its global headquarters in Taiwan in a KRW40 billion ($35.45 million) deal in 2017. The brand’s HQ operates stores in 16 countries.

    The offer has attracted interest from major South Korean F&B players, considering the brand’s stable cash flows and EBITDA margin of 24–25 per cent, compared with Starbucks’ 21 per cent.

    The brand runs 448 outlets within South Korea, and derives 70 per cent of its sales from directly managed stores within Korea and Japan. The firm plans to expand its global store count from 900 to 1700 by 2021, expanding into 10 more countries during the period – with concrete plans to establish stores in the UK, Mexico, Thailand, Indonesia and Cambodia.

    Sales are forecast at KRW180 billion ($159.54 million) this year, compared to KRW134 billion ($118.77 million) last year.

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  • SingPost Centre to have Gong Cha flagship

    SingPost Centre to have Gong Cha flagship

    Never mind bubble wrap, the new SingPost Centre in Paya Lebar is about to have the flagship store for bubble-tea chain Gong Cha as it returns to Singapore.

    Under construction, the store will open in December.

    In May, the brand announced it was leaving Singapore and that its outlets would be replaced by new local chain LiHo. However, Royal Tea Taiwan, the company behind Gong Cha, revealed a couple of months later that the chain would return under a new master franchisee. Former Mr Bean co-founder/MD Kang Puay Seng is leading the return of the brand.

    The new SingPost Centre mall will officially launch next Thursday.

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  • International brands battle for Vietnam milk tea market

    International brands battle for Vietnam milk tea market

    As Vietnam’s economy grows the Vietnam milk tea market has become a battleground for foreign franchises.

    The latest debutant is Taiwanese milk tea brand T4, founded in 2004,  and which has steadily built an international network now including Malaysia, Thailand, Indonesia, China, the UK and the US.

    The first T4 outlet in Vietnam is a two-storey building, located on Phan Xich Long street in Ho Chi Minh City, a popular destination for milktea fans, where consumers are spoilt for choice.

    Next on the scene is Tealive, a new brand from the former Malaysian master franchisee for Chatime.

    And while new names are coming, current players are expanding their networks, in a market share battle even more fierce than the notorious coffee market stoush.

    Gong Cha, Hong Kong-based Taiwanese milk tea chain, plans to boost franchise this year, after building a strong foothold in Ho Chi Minh City with 10 outlets. Now, Gong Cha is opening two stores in Hanoi and one in Danang, with more to come in other cities, including Haiphong.

    Considered a prime competitor for Gong Cha, Koi The came to Vietnam in September 2015, and currently operates seven outlets in Ho Chi Minh City, all located in busy downtown sites or shopping malls.

    Nguyen Hoai Phuong, a spokesperson for Gong Cha Vietnam, previously told a local newspaper that milktea is the weapon to win in Vietnam’s beverage cafe market, largely due to the youthful Vietnamese population.

    That might well be the reason why more and more international brands are planning Vietnam expansion.

    More big names have just joined the segment – Queeny, Chachago, Sharetea and Goky.

    Middle market players include Bobapop, Teacup and Dingtea, the oldest player in the sector. Dingtea landed in Vietnam in 2014 and has now built a network of nearly 100 outlets across the country. It has 350 stores in China and 650 globally.

    In this battle, local brands seem to struggle, with only a few names having gained a reputation and real market penetration. Hot and Cold might be considered the most successful, a pioneer in the Vietnam milk tea market since 2011. Charting a different course to most of its rivals, Hot and Cold grew market share with a customised menu and finger food.

    Given the size of the market and Vietnam’s young population, many more milk tea and juice brands are expected to try their luck in due course, making the battle for share even more fierce.

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  • Sharetea bubble tea arrives in Vietnam

    Sharetea bubble tea arrives in Vietnam

    Taiwanese bubble-tea brand Sharetea has launched into Vietnam with a store on the walking street of Nguyen Hue in central Ho Chi Minh City.

    Sharetea has more than 450 stores in more than 18 countries. Its drinks are made from tea leaves and ingredients shipped directly from Taiwan.

    It says its customers’ favourite drinks include coffee milk tea, kiwifruit tea, whole-lemon green tea and pearl black milk tea.

    Vietnam’s bubble-tea market has yet to reach its potential, say business owners in the sector. Sharetea is competing with other overseas brands like Chatime, Gong Cha and Koi.

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