Gong Cha Changes Hands Again as Bain Capital Takes Over the Global Network of the "Founding Father of New-Style Tea Drinks"

Gong Cha, with nearly 2,200 stores worldwide, has changed ownership once again.

On August 6, Bain Capital announced that it would acquire Gong Cha from US private equity firm TA Associates and other shareholders. The transaction is expected to be completed in the fourth quarter of 2026, with the amount and specific terms yet to be disclosed.

In May this year, when TA Associates initiated the sale process for Gong Cha, it sought a valuation of up to approximately $2 billion, equivalent to nearly 30 times Gong Cha’s annual EBITDA.

However, Reuters reported at the time that potential buyers were inclined to offer lower valuation multiples.

Gong Cha’s revenue grew 14% year-over-year in 2025 to reach $217 million, with EBITDA exceeding $70 million. Currently, the brand has entered 33 markets through a mix of direct operations and franchising, operating nearly 2,200 stores across Asia, North America, Europe, and the Middle East.

What Bain Capital is taking over is not just a bubble tea brand, but a global franchise network that has undergone multiple rounds of capital consolidation.

Founded in Kaohsiung, Taiwan, China, in 2006, Gong Cha initially entered markets such as Hong Kong, Singapore, Malaysia, the Philippines, and South Korea primarily through regional franchising. Local partners were responsible for investment, store openings, and daily operations, while headquarters provided brand, product, training, and supply chain support.

In 2014, private equity firm Unison Capital acquired a controlling stake in Gong Cha’s South Korean business and promoted the professionalization of its management, operations, and franchise systems.

Subsequently, Gong Cha Korea obtained operating rights for the Japanese market and, between 2016 and 2017, gradually acquired a 70% stake in Royal Tea Taiwan, the global headquarters based in Taiwan, China.

It is uncommon in the restaurant chain industry for regional franchisees to reverse-control the global headquarters.

This integration also changed Gong Cha’s approach to globalization. Previously scattered trademarks, regional rights, and franchise networks began to be incorporated under a single group, transforming Gong Cha from a Taiwanese tea drink brand into an international franchise enterprise dominated by Korean management teams and capital.

In 2019, TA Associates gained control of Gong Cha from shareholders including Unison Capital. Since then, Gong Cha’s global store count has nearly doubled, expanding its presence to 33 markets.

During TA’s holding period, Gong Cha also began reclaiming some operating rights in mature markets.

In 2025, Gong Cha completed strategic acquisitions of master franchisees on the US East and West Coasts, shifting some markets from a regional master agency model to direct development and management of franchisees by headquarters.

Japan is currently one of Gong Cha’s most important growth pillars.

Gong Cha Japan’s revenue reached KRW 116.5 billion in 2025, a year-over-year increase of over 53%, with net profit accounting for approximately 80% of Gong Cha Korea’s consolidated net profit.

Gong Cha plans to increase its number of stores in Japan from about 220 to 400 by 2028, raising annual customer traffic from approximately 40 million to 60 million visits.

This explains Bain’s interest in Gong Cha. In addition to the rapid growth in the Japanese market, Bain has also invested in Domino’s Japan and has long been positioned in catering and franchise chain assets.

Gong Cha can create synergies with Bain’s existing operational resources in Japan, franchise management experience, and digital marketing capabilities.

Starting from regional licensing, integrating the global headquarters under the Korean team, and then having TA drive store expansion and reclaim rights in mature markets, Gong Cha’s globalization has not been a simple replication of stores, but a continuous adjustment of the relationship between headquarters and regional operators at different stages.

After Bain takes over, Gong Cha’s next phase of growth space will mainly come from two areas: continuing to amplify high-growth markets like Japan, while reclaiming more operational and revenue control rights in mature markets such as the United States.

How to further integrate nearly 2,200 stores from a scattered international network into a more unified and efficient global franchise system will determine how much value this acquisition can ultimately unlock.

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