Gong cha has signed a master franchise agreement with Shahia Foods Group to open at least 300 locations in the Middle East over the coming years.
The partnership is the largest master franchise agreement for the bubble tea concept, which has 2,100 locations in 23 countries, including 15 in the UK.
With more than 800 retail sites and 7,000 employees, Shahia Foods Group is a leading franchise operator that represents brands including Dunkin’ and Arby’s.
Under the terms of the agreement, the group will initially open and launch stores in Riyadh early in 2024, and target additional stores in Saudi Arabia, Bahrain, and Dubai by 2025.
Gong cha’s launch in the Middle East comes amid growing consumer demand for bubble tea, with research by the brand indicating its menu of freshly brewed drinks has a high purchase intent by 90% of consumers.
Founded in Taiwan in 1996, Gong cha has expanded its global footprint with recent launches in France, Portugal, Panama, and Benelux, while opening new sites in the UK and US.
After recently reaching the 2,000-site mark, the brand is seeking new master franchise agreements to scale up to 10,000 sites by 2032.
Paul Reynish, global CEO of Gong cha, said: “We’re delighted to announce our landmark partnership with the Shahia Foods Group to bring Gong cha’s quality tea to the Middle East. With a strong portfolio of global brands, extensive locations across key markets, and long-standing relationships, we believe the Shahia Foods Group is the perfect partner to help fulfil our expansion ambitions in the Middle East. We look forward to working with the team to launch our new stores in the months ahead.”
Mr Saud Abdullah Al Athel, group CEO of Shahia Foods, said, “We’re delighted to bring the world’s best known bubble Tea brand to the Middle East. Gong cha’s commitment to quality and differentiated menu will delight consumers’ taste buds in the Middle East and complement our existing retail portfolio for optimum growth.”
