Gong cha's Strategic Expansion into High-Traffic Tourism and Hospitality Markets: Unlocking Scalable Growth and Premium Brand Equity for Quick-Service Beverage Franchises

In the fast-evolving world of quick-service beverage franchises, location is no longer just a convenience—it's a competitive advantage. Gong cha, the Taiwanese bubble tea giant, has mastered this equation by embedding itself in high-traffic tourism and hospitality ecosystems. From luxury resorts to international airports, the brand's strategic partnerships are not only driving scalable growth but also cementing its identity as a premium, experience-driven player in a crowded market. For investors, this dual focus on operational scalability and brand equity presents a compelling case for long-term value creation.

The Resort-Based Play: A Gateway to Global Tourism

Gong cha's 2025 entry into the Caribbean via Atlantis Paradise Island is a masterstroke. This resort-based partnership taps into a demographic of high-spending tourists seeking curated experiences. Unlike traditional retail locations, resorts offer a captive audience with disposable income and a penchant for novelty. By positioning itself in such environments, Gong cha isn't just selling tea—it's becoming part of the destination's identity. This strategy mirrors the success of Starbucks in airports or McDonald's in theme parks, where convenience and brand familiarity drive repeat visits.

The Caribbean is just the beginning. Gong cha's global expansion into the Middle East and North Africa (MENA) region, with tailored offerings like strawberry almond jelly tea and boba crème bowls, demonstrates its ability to localize while maintaining brand consistency. These markets, rich in tourism and cultural exchange, provide a fertile ground for Gong cha to scale without diluting its premium image.

The U.S. Western Expansion: Tourism-Driven Franchising

In the U.S., Gong cha's focus on Arizona, Nevada, Utah, and Hawaii—all top-tier tourist destinations—highlights its understanding of where demand for premium beverages is most concentrated. For example, the multi-unit franchise agreement with Blu Tea Arizona in cities like Tempe and Chandler aligns with the region's growing appeal to both domestic and international visitors. Similarly, the brand's first Seattle-area store, led by seasoned operator Ajay Keshap, targets the Pacific Northwest's tech-savvy, travel-oriented population.

This approach is not accidental. By re-acquiring franchise rights in California and targeting 200 stores in the state, Gong cha is leveraging its existing 27 locations as a foundation for hypergrowth. The state's tourism-driven economy, from Silicon Valley to Hollywood, ensures a steady stream of foot traffic. Moreover, Gong cha's direct franchising program in Hawaii and Nevada—both iconic tourist hubs—positions the brand to capitalize on seasonal demand and discretionary spending.

Experiential Retail: Beyond the Storefront

Gong cha's foray into non-traditional formats—airports, casinos, and amusement parks—further underscores its commitment to experiential retail. Appointing Michael Nedelkovich Jr., a veteran in high-traffic venues, to lead U.S. non-traditional franchise development signals a strategic pivot. These locations are not just about proximity to travelers; they're about creating moments. A traveler grabbing a Gong cha at a Las Vegas airport or a family enjoying a boba crème bowl at a theme park is more likely to associate the brand with positive, shareable experiences.

This experiential angle is critical for brand equity. In an era where consumers crave authenticity and social proof, Gong cha's presence in high-traffic, high-exposure environments amplifies its visibility. The brand's recent rollout of digital kiosks and beverage dispensing technology also enhances operational efficiency, ensuring that even in bustling locations, service remains swift and consistent.

Global Ambitions and Financial Implications

Gong cha's 2025 milestones—225 stores in the UK via Jinziex, 300 in the MENA region via Shahia Foods—underscore its ambition to reach 10,000 stores globally by 2032. These numbers are not just aspirational; they're backed by a franchise model that prioritizes experienced operators and localized product innovation. For investors, the key metrics to watch are same-store sales growth, franchisee retention rates, and unit economics in high-traffic markets.

Investment Thesis: A Franchise Model Built for Tourism

Gong cha's expansion into tourism and hospitality markets is a textbook example of location-led scalability. By anchoring itself in environments where foot traffic is guaranteed and consumer spending is discretionary, the brand minimizes the risks associated with traditional retail. Moreover, its focus on premium, customizable offerings—like its indulgent milk-based beverages in the Middle East—positions it as a value-adding player in a sector where price sensitivity is low.

For investors, the risks are mitigated by Gong cha's proven franchise model and its ability to adapt to local tastes. The brand's re-acquisition of California franchise rights, for instance, allows for tighter control over expansion and brand consistency. Meanwhile, its global partnerships with operators like Jinziex and Shahia Foods ensure that growth is not just rapid but also sustainable.

Conclusion: A Premium Play in a High-Growth Sector

Gong cha's strategic expansion into high-traffic tourism and hospitality markets is more than a geographic play—it's a masterclass in leveraging location to build both scale and brand equity. For investors, this represents a rare combination: a franchise model with strong unit economics, a brand that resonates with premium consumers, and a global footprint that's expanding into markets with high tourism potential. As the bubble tea industry matures, Gong cha's ability to stay ahead of the curve—through innovation, localization, and experiential retail—positions it as a standout opportunity in the quick-service beverage sector.