Bain Capital is buying Gong Cha
Bain Capital acquires Gong Cha, indicating continued interest in beverage franchises.
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Bain Capital is acquiring Gong Cha, a major player in the bubble tea market with 2,200 locations globally, including 289 in the U.S. The transition comes as Gong Cha seeks to reset its franchising strategy after slowing growth, planning to expand with 50 new locations in Texas over the next seven years.
Why It Matters
This acquisition may enhance future unit economics for franchisees as Bain increases support for expansion and modernizes operational models, potentially influencing territory availability and competitive dynamics.
Bain Capital, a private-equity firm, is acquiring the bubble tea chain Gong Cha from TA Associates. While the financial terms of the transaction have not been disclosed, this deal involves a significant player in the beverage industry, as Gong Cha operates 2,200 locations globally, including 289 in the U.S. and Canada. The brand has established itself as one of the largest bubble tea chains in the U.S. with a strong reputation and a loyal customer base. "Gong Cha has built a distinctive and globally recognized brand with a loyal customer base and franchisee economics that are among the strongest in the sector," stated Naofumi Nishi, a partner with Bain.
Despite its strong market presence, Gong Cha has experienced a slowdown in domestic growth in recent years, with system sales growing only 3.3% to $121.6 million in 2025, according to Technomic. Unit expansion has also decelerated, with only 12 locations added over the past two years compared to previous years' averages exceeding 30 per year. In response to this decline, Gong Cha has recently adjusted its franchising strategy. The chain acquired master franchisee rights in the Eastern U.S. and on the West Coast and announced a plan to open 50 new locations in Texas over seven years in collaboration with Bakers Acres & Cattle. Additionally, Gong Cha is introducing a “digital kitchen” concept with a flexible store footprint to enhance operational efficiency.
The deal, expected to close by the end of this year, positions Bain Capital to tap into the growing demand for beverage brands, following trends in the restaurant industry where coffee and beverage segments have thrived despite broader economic challenges. Financial advisors for Gong Cha included J.P. Morgan and NorthPoint, while Nomura Securities advised Bain.
Going forward, the focus will be on how Gong Cha adapts to its updated franchise strategy and how this acquisition influences its growth trajectory in a competitive beverage market.
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