Gong Cha Franchise Cost, Fees & Profit 2024

The milk tea industry is a thriving beverage sector in the Philippines, Asia, and internationally. Its popularity stems from its refreshing taste and a variety of delectable mixes.

Gong Cha established itself in the milk tea business with this philosophy in mind. So, do you want to open a Gong cha milk tea franchise?

Gong Cha Franchise

About The Gong Cha

Gong cha is a worldwide bubble tea franchise dedicated to providing premium bubble tea that elevates the bar for the whole beverage industry in terms of quality.

From their Taiwanese headquarters to the Boston headquarters to the global network of Gong cha franchisees, they are committed to excellence.

Gong cha transforms tea into a global and fashionable beverage and instills tea culture into people’s lives.

Gong cha pledges to use the art of tea to inspire people in their daily lives and to brighten their thoughts.

The first franchise was available for purchase in 2016, after acquiring its amazing concept, developing its special bubble tea formula, and improved quality control.

Since then, the number of franchise opportunities has increased. There are currently 1,459 franchisees functioning under the trademark worldwide. It is also one of the 10 best bubble tea franchises that you must own.

Gong Cha Franchise Products Or Services

Gong Cha Franchise Products Or Services
  • Choco Loco
  • Wintermelon Mania 
  • House Special
  • Milk Tea
  • Ice Cream Special
  • Ice Smoothie
  • Coffee Special
  • Fruit Tea
  • Fruit Series
  • Brewed tea

What Are The Requirements For Becoming A Gong Cha Franchisee?

Once you’ve decided to open a Gong Cha franchise, you’ll need to do the following:

  • Examine the accessible land.
  • Make sure you have the resources.
  • Possess prior experience
  • Have a specified amount of money in the bank.

Gong Cha Franchise Model 

Cost Or FeesAmount
Initial Franchise Fee  $30,000  
Total Investment  $217,800 to $498,000  
Area RequirementN/A
Royalty Fee6.0%
Total Outlets1,459 Units

Gong Cha Franchise Revenue & Profit

The revenue and profit of Gong Cha Franchise owners can vary depending on the location, size of the outlet, labor cost, etc.

However, as per our research, A Gong Cha franchise owner makes $530,000 in sales per year on average.

And with a profit margin corresponding to 15%, they make $44,775 in profits per year on average.

This is how we were able to calculate the profit of Gong Cha:

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%298504.00
Franchise Royalty Fees5.31%(15858.02)
Cost of Goods Sold (COGS)26.56%(79290.13)
Labor (Variable)13.81%(41230.86)
Total (Expenses)85.00%(253728.40)
Net Profit15.00%44775.60

Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.

Global Assistance Network

With Gong cha, you’ll have access to the whole team of Gong cha bubble tea masters for training and assistance.

They will help out of your franchise experience, from our U.S. offices in Boston to our corporate headquarters in Taiwan.

Why Would You Want To Buy A Gong Cha Tea Franchise?

Why Would You Want To Buy A Gong Cha Tea Franchise

Customers responded favorably to the premium quality tea, products, and services given by Gong Cha in Taiwan, as seen by its success:

  • Every four hours, a new cup of tea is made.
  • Every 4 hours, the pearls (bubbles) cook to perfection.
  • Tea from Taiwan’s most prestigious tea plantations
  • All ingredients are subjected to stringent quality monitoring.

What Is The Best Way To Fund A Gong Cha Franchise?

Secured Business Loan- 

This type of loan requires you to put up an asset as collateral, usually a commercial or residential property. 

Unsecured Business Loan-

If you don’t have access to a valuable asset like real estate, you might want to look into an unsecured business loan.

Line Of Credit For A Business-

Unlike a traditional loan, a line of credit provides your company with ongoing access to a pre-determined credit limit that can be used as and when needed.

Payback Period Of Gong Cha Tea

With an investment of $498,000 and an estimated 15% profit margin, the yearly profit would be $44,775.

So, to find out how long it will take to earn back the initial investment:

Payback Period = Investment / Yearly Profit = $498,000 / $44,775= 11.06 years

Based on these figures, it will take approximately 11 years to pay back the initial investment for Gong Cha Tea. This time period could be longer or shorter depending on your sales, revenue, and profit figures.

Entrepreneurs considering a venture into the beverage franchise sector might explore options such as Kung Fu Tea franchiseMilkshake FactoryTiger SugarMochinut, and Ding Tea franchises.

Gong Cha Tea Comparison

CompanyGong Cha TeaSharetea
Founded In20061992
Initial Investment$217,800 to $498,000  $260,000
Franchise-Fee$30,000  $22,500
Total Outlets1,459 450
Annual Revenue$576,575$65 Million 

Frequently Asked Questions 

What is Gong Cha's claim to fame?

Gong Cha USA Franchise is 100% committed to offering high-quality Bubble Tea beverages to their clients.

What is the composition of Gong Cha pearls?

Pearl Milk Tea by Gong Cha is a sweet, milky black tea with chewy tapioca pearls.

Is Gong Cha a true tea connoisseur?

Gong Cha’s various flavored teas are supplied from Taiwan’s most recognized tea estates.

Does Gong Cha offer franchising?

Gong cha is an international beverage specializing in freshly prepared bubble tea, and yes, it offers franchising.

Who owns Gong Cha Tea?

TA Associates is the owner of Ginga Cha Tea. It acquired the chain in 2019.

How many locations does Gong Cha Tea has?

Gong Cha Tea currently operates more than 1,300 stores globally, including South Korea, Australia, Japan, Singapore, the United Kingdom, and the United States.

Where is Gong Cha Tea headquartered?

Gong Cha Tea is headquartered in London, United Kingdom.

Who founded Gong Cha Tea?

Gong Cha Tea was founded in 1996 in Taiwan by two friends, Huang and Wu Zhenhua.

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