Gong cha, a leading global bubble tea brand with nearly 2,200 locations spanning 24 countries, has announced a significant milestone with the signing of a 30-unit development agreement in partnership with SID Tea LLC. This collaboration is spearheaded by a team of seasoned QSR franchisors, including Jose Vazquez, former Vice President of the Puerto Rico Chamber of Commerce and ex-President of ASORE (the Puerto Rico Restaurant Association). The agreement follows Gong cha’s successful debut in the Puerto Rican market, marked by the opening of its first two stores in San Juan and Manatí in spring 2024. Plans are underway to launch two more stores this summer, with a fifth expected by year-end.
Founded in Taiwan in 2006, Gong cha initially entered the Americas through a master franchise model but has recently broadened its approach to include direct franchising. SID Tea LLC, renowned for operating numerous Subway outlets globally and managing a diverse portfolio of over 180 units, including Wingstop and Acai Express, will serve as Gong cha’s inaugural direct franchisees. Their strategy involves leveraging multiple brands within their portfolio to enhance foot traffic and introduce Gong cha’s offerings across various formats, from standalone units with drive-thrus to kiosks in shopping centers.
The bubble tea market is rapidly expanding, projected to grow from $2.63 billion in 2024 to $4.78 billion by 2032, positioning Gong cha favorably in Puerto Rico. “Puerto Rico traditionally favors coffee, but there’s a rising interest in bubble tea, particularly among Gen Z and millennial consumers,” notes Lyle Swanson, President of SID Tea LLC. The initial stores in San Juan and Manatí have seen robust sales and enthusiastic community reception, underscoring the success of the multi-brand co-location strategy.
Mario Gaztambide, Director of Operations at SID Tea LLC, emphasizes their choice of Gong cha due to its premium products, strong brand equity, and streamlined operational model. The brand’s swift adaptation and seamless integration with existing portfolios have exceeded expectations, prompting a larger commitment to expand Gong cha’s presence across the island.
Beyond consumer satisfaction, SID Tea LLC is committed to local economic growth, projecting an investment of over $1 million in 2024 to establish five locations, potentially creating up to 75 jobs through hiring initiatives and supply chain management.
Geoff Henry, President of Gong cha Americas, expresses confidence in SID Tea LLC’s expertise to drive expansion and foster customer loyalty through their multi-brand approach. The first Gong cha store in Puerto Rico is situated at 1705 Calle San Javier, San Juan, with a second location at Plaza Atenas Shopping Center on 9 PR 2, Manatí.
Gong cha continues to seek qualified franchise candidates to accelerate its growth trajectory across the U.S. and the Americas. For more details on Gong cha’s franchise opportunities, visit https://gongchausofficial.com.
