How Gong Cha Makes Bubble Tea Better

Image of four different bubble tea beverages

In 2023, inflation remains a concern for the QSR segment. Weary of rising costs, entrepreneurs are far savvier when looking to invest in a franchise opportunity amidst economic uncertainty. Businesses that are inflation-resilient and embracing strategies or business models to combat the looming risks of increased costs are the most attractive.

We will review why Gong cha’s strong purchasing power and supply chain flexibility, relatively low COG, and ability to bear cost increases without effect on demand help to allow Gong cha to be well-positioned to navigate inflationary pressures.


Gong cha has been in business for over a decade and is a well-known and established brand with a global presence and loyal customer base. Because of our strong focus on quality, premium ingredients, and unique flavors, we have developed strong relationships; beginning with the finest tea estates in Taiwan and leading to a reliable, streamlined, diverse, and efficient supply chain, both domestically and internationally. This helps to mitigate the impact of disruptions in any one area, ensuring that Gong cha can continue to operate even if there are shortages or disturbances in certain supplies.


Gong cha also has the ability to keep the Cost of Goods (COG) relatively low. With a large global presence comes significant purchasing power when it comes to ingredients and supplies. By buying in bulk, Gong cha’s volume purchasing may be able to negotiate better prices and keep the COG lower. Our menu is also relatively focused and flexible, with a limited number of drink options compared to some competitors. This could allow for easier control of inventory and streamlined operations. Gong cha is also known for other operational efficiencies like brewing tea fresh on-site. This could aid in minimizing waste, which could further help keep the COG relatively low.

The bubble tea industry, at large, has also been able to adapt to changing circumstances by being flexible and open to alternative solutions like shifting to takeaway or delivery during the impacts of labor shortages and in-store service disruptions.


During tough times, simple pleasures are often the most valued. Bubble tea is often considered an affordable luxury, which means that loyal customers are still willing to spend money on the sweet treat, even during economic downturns. Customers may cut back on other expenses, but they are likely to continue indulging in comfort items like bubble tea. Gong cha is Entrepreneur’s #1 Ranked Tea Franchise and is a premier bubble tea brand with a global presence known for quality ingredients and unique flavors. This brand recognition and loyalty may allow continuing premium prices for products even in the face of rising input costs. And that’s perfectly fine with us. We are in the business of brewing happiness.


Despite uncertain times, the popularity of the bubble tea market, however, is quite certain. People love bubble tea.  And the U.S. bubble tea market is expected to grow into a $5.5 billion industry by 2031. Franchising with Gong cha is the perfect opportunity to capitalize in a thriving industry, at a time when demand and recognition are surging. Learn more about your franchising opportunity by scheduling a call with us today.

Gong cha Franchise


*Allied Market Research, Global Bubble Tea Market Opportunities and Forecast, 2020 – 2027.

The information in this proposal does not constitute an offer to sell a franchise. The offer of a franchise can only be made through the delivery of a franchise disclosure document. Certain states require that we register the franchise disclosure document in those states. We will not offer or sell franchises in those states until we have registered the franchise (or obtained an applicable exemption from registration) and delivered the franchise disclosure document to the prospective franchisee in compliance with applicable law.