Daily Newsletter

12 December 2023

Daily Newsletter

12 December 2023

Gong cha signs franchise agreements in US and Central America

The two agreements will expand the bubble tea brand’s presence in the Americas by more than 100 stores.

Umesh Ellichipuram December 12 2023

Tea drink franchise Gong cha has signed agreements with two new master franchisees and awarded the territory rights for the Great Pacific Northwest and Central America.

The bubble tea brand, which currently operates more than 2,100 locations across 23 countries, will be expanding its reach to Washington, Oregon and Idaho under the Great Pacific Northwest franchise agreement with Ajay Keshap.

Keshap has owned a multi-brand franchise group in the US for 25 years. The group's holdings include 24 Denny’s restaurants and 15 Papa John’s pizza restaurants.

The group holds area development rights to Dave’s Hot Chicken in the state of Washington.

For Central America, Gong cha signed an agreement with husband and wife team Justin Willingham and Monica Fonseca.

Willingham and Fonseca will begin by opening the first Gong cha location in Honduras, then expand the brand to Costa Rica, El Salvador and Guatemala.

They aim to open one or two locations in early 2024, with a target of 50 stores across their territory by 2033.

Together, the two agreements will expand the bubble tea brand’s presence in the Americas by more than 100 stores.

Gong Cha Americas president Geoff Henry stated: “We’re proud to be partnering with Ajay, Justin and Monica to bring Gong cha to new markets across the Pacific Northwest and Central America.

“With their experience and leadership in the franchise space, we know they will find great success introducing Gong cha’s premium product to a brand new audience.”

Gong cha Americas has opened more than 400 locations across the US, Canada, and Mexico since 2014.

The brand has opened more than 225 stores across 19 states and is estimated to reach its 1,000th in the Americas by 2026.

Western Europe foodservice market dynamics

The total revenue of the Western European foodservice profit sector totaled $685.3 billion in 2022, having declined at a negative CAGR of 2.4% during 2017–22. In 2022, FSR was the largest foodservice channel, with a value share of 25.9%, followed by QSR. However, the region’s foodservice sector is poised to bounce back as it is forecasted to register a CAGR of 8.1% by 2027.

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