Gong Cha expands reach in Puerto Rico with new franchise partnership

In a strategic move to expand its footprint, Gong cha, the globally renowned bubble tea brand, has announced a significant development agreement with SID Tea LLC. This partnership marks a major milestone as Gong cha continues to penetrate the Puerto Rican market, a region traditionally dominated by coffee. Under this deal, 30 new Gong cha units are slated to open, enhancing the brand’s presence with a focus on multi-brand, co-located stores.

The agreement comes shortly after Gong cha’s successful introduction in Puerto Rico, with the first two stores launched in San Juan and Manatí in early May 2024. These initial locations have already shown promising results, with robust sales and community enthusiasm. The expansion strategy includes opening two more stores by this summer and a fifth by the end of the year. SID Tea LLC, led by experienced franchisors such as Jose Vazquez and Mario Gaztambide, plans to utilize a multi-brand strategy to maximize customer traffic and introduce new consumers to the bubble tea product.

The global bubble tea market is expected to grow from $2.63 billion in 2024 to $4.78 billion by 2032, and Gong cha is positioned as an early mover in Puerto Rico. Lyle Swanson, President of SID Tea LLC, emphasized the untapped potential in the region, noting the rising interest among younger consumers and the lack of a dominant bubble tea player on the island.

Mario Gaztambide, Director of Operations at SID Tea LLC, highlighted the seamless integration of Gong cha into their existing portfolio, praising the brand’s premium quality and operational ease. The partnership not only introduces a high-quality product but also plays a significant role in job creation and economic growth in Puerto Rico. In 2024 alone, SID Tea LLC plans to invest over $1 million in the first five locations, expecting to create approximately 75 jobs across various roles.

Gong cha’s commitment to quality and customization is well-reflected in its rapid global expansion. With nearly 2,200 locations in 24 countries, the brand continues to attract entrepreneurs worldwide. Geoff Henry, President of Gong cha Americas, expressed confidence in the expansion, commending the operational synergies that will likely accelerate growth through the multi-brand location strategy.

The strategic expansion of Gong cha in Puerto Rico through its partnership with SID Tea LLC is a testament to the brand’s adaptive market strategies and the potential of bubble tea in non-traditional markets. This move could serve as a blueprint for similar expansions in other regions, leveraging local market insights and operational synergies to optimize growth.