GONG CHA SIGNS LARGEST MASTER FRANCHISE AGREEMENT IN ITS HISTORY

Gong cha, one of the world’s fastest-growing global tea brands is pleased to announce that it has signed a master franchise agreement with Shahia Foods Group. Headquartered in Saudi Arabia, Shahia Foods is one of the largest and most successful food companies in the region.

Founded in Taiwan in 1996, Gong cha is known for its consistently high-quality, freshly brewed drinks made with premium ingredients. In 2009, the brand expanded overseas for the first time and has grown significantly, and now, through master franchise agreements, has more than 2,100 locations across 23 countries, including the UK, USA, Mexico, Australia, New Zealand, Korea and Japan.

With more than 800 retail sites and 7,000 employees, the Shahia Foods Group is a leading franchised operator that represents international brands including Dunkin Donuts and Arby’s. Under the terms of the agreement, which is one of the largest in Gong cha’s history, the Shahia Foods Group, will initially open and launch stores in Riyadh early in 2024. By 2025, it will look to scale up Gong cha’s presence in the Middle East – targeting additional stores in Saudi Arabia, Bahrain and Dubai.

Gong cha’s launch in the Middle East comes amid growing consumer demand for unique food and beverage products, including bubble tea. Research by Gong cha indicates that its menu of high-quality, freshly brewed drinks has a high purchase intent by 90% of consumers, particularly products with chocolate and brown sugar notes such as its chocolate smoothie with cookie crumbs and crème brulee brown sugar tea.

The latest chapter in its ambitious international expansion strategy, Gong cha’s launch in the Middle East is a significant milestone for the Group. In recent months, it has strengthened its global footprint launching in France, Benelux, Portugal and Panama, while opening new sites in strategically important markets including the UK and USA. After recently opening 10 stores in 9 countries in a single day to break through the 2,000-store estate barrier, Gong cha is now 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.”

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