Bain Capital acquires Gong cha as private equity bets on global bubble tea expansion
A wave of consolidation is moving through the quick-service beverage sector globally, with private equity capital flowing toward franchised concepts that span multiple geographies. Against that backdrop, Bain Capital has agreed…
Key takeaways
- Bain Capital has agreed to acquire the Taiwan-founded bubble tea chain Gong cha from TA Associates, with the deal expected to close in the fourth quarter.
- Financial terms were not disclosed, though Bloomberg reported in March that a potential sale could value Gong cha at roughly $2 billion.
- Gong cha operates nearly 2,200 stores across 33 international markets and serves more than 150 million beverages annually.
- Gong cha has more than 240 U.S. locations against a long-term domestic target of 1,000 stores.
- The deal extends Bain's food-and-beverage build-out, following its purchase of Sizzling Platter last year and Fogo de Chão in 2023.
A wave of consolidation is moving through the quick-service beverage sector globally, with private equity capital flowing toward franchised concepts that span multiple geographies. Against that backdrop, Bain Capital has agreed to acquire Gong cha, the Taiwan-founded bubble tea chain, from TA Associates in a deal expected to close in the fourth quarter. Financial terms were not disclosed; Bloomberg reported in March that JPMorgan Chase was advising TA on a potential sale that could value Gong cha at roughly $2 billion, though neither party confirmed a figure with this week's announcement.
Seven years under TA Associates
TA Associates took a majority stake in Gong cha in 2019. Over the following seven years the firm built the chain's international presence, funded restaurant technology investment, and moved to consolidate a fragmented U.S. footprint. The biggest operational shift came when Gong cha acquired 170 restaurants across 13 states from a U.S. master franchisee, bringing the Southeast directly under corporate control and creating a platform for recruiting larger multiunit operators. Master franchise rights for both the eastern and western regions of the country have since followed.
Gong cha now operates nearly 2,200 stores across 33 international markets and serves more than 150 million beverages annually. U.S. locations number more than 240, against a long-term target of 1,000 domestically.
Bain's expansion thesis
Bain Capital's case for the deal rests on Gong cha's franchisee economics and its cross-border presence across 33 markets. The firm cited Asia-Pacific (including Japan) and the Americas as regions with substantial development potential. This acquisition extends a broader food-and-beverage build-out: last year Bain spent over $1 billion on Sizzling Platter, a 750-unit franchisee running Little Caesars, Wingstop, Dunkin' and several other brands, and it acquired Brazilian steakhouse Fogo de Chão in 2023.
The transaction arrives as Gong cha advances its Gong cha 2.0 initiative. The program overhauls digital infrastructure, the beverage-production system, and store layout. That new format is live in 250 stores.
Sector consolidation and the demand read-through
Gong cha's ownership change fits a sector-wide pattern in quick-service beverages. Dutch Bros agreed this year to acquire 20-unit Clutch Coffee Bar and struck a separate $105 million deal for up to 65 former Salad and Go sites. Luckin Coffee has been extending its U.S. presence in a direct challenge to established specialty coffee competitors.
The macro question for Gong cha's next phase is whether U.S. consumer traffic can support the franchisee-led expansion needed to reach 1,000 domestic stores from a current base of 240. Bain has set no public timeline for that target. The deal is expected to close in the fourth quarter.
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