Bubble tea giant Gong cha to expand into Arizona with multiple Phoenixarea locations

“Gong cha, a bubble tea brand founded in Taiwan nearly two decades ago, has signed a deal to bring its first stores to Arizona.

The fast-growing beverage franchise, which has more than 240 locations across 21 states in the U.S., announced this week it has signed a deal with an existing franchisee to expand to Arizona, specifically in the metro Phoenix area.

In the Grand Canyon State, the Gong cha franchisee will be operated under the company Blu Tea Arizona and led by Fernando Ochoa, who has run several franchised brands, including Gong cha in two other territories.

In a statement, Ochoa described Gong cha as a “category leader with strong demand, with a premium product, and a scalable model,” which is why he’s added the concept to his portfolio.

“Our success in other markets has affirmed our confidence in the brand, and we see a strong opportunity to continue to scale into Arizona with a multi-unit deal,” Ochoa said in a statement. “We plan to grow quickly with multiple stores across the Phoenix region.”

Blu Tea Arizona specifically highlighted Tempe, Mesa, and Chandler as destinations it is looking to expand to. The franchisee said Arizona was “an ideal market” for the brand to grow since more than 22% of the state’s population falls between ages 15 and 29 — Gong cha’s core audience.

Bubble tea has grown in popularity not just in the Phoenix area, but across the U.S. Gong cha is in the midst of a major expansion to capitalize on the growing popularity of its product. The company wants to more than double its footprint in the U.S. by 2028 and have a total of 500 locations here in the next three years.

The Gong cha model allows franchisees to open flagship stores up to 2,500 square feet or small kiosks.

The franchise model has been popular in Arizona in recent months. Quick-serve fried chicken concept Slim Chickens is set to open its fifth Arizona location later this month, while fried chicken chain Zaxby’s has named a pair of Phoenix-area franchisee groups and is set to open its first Valley location this summer.”

Source: Phoenix Business Journal