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Mon 17th Mar 2025 - Gong Cha signs franchise agreement to open at least 225 new UK stores |
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Gong Cha signs franchise agreement to open at least 225 new UK stores: Gong Cha, the fast-growing bubble tea brand headquartered in the UK, has signed an agreement with Jinziex – a new company led by Diljit Brar, chief executive of Goldex; Azha Rehman, founder and chief executive of Kaspa’s Desserts; and Steve Falle, managing director of WY&SF Ltd – to open an initial 225-plus stores in the UK over the coming years. The agreement will create nearly 2,000 jobs and is an important part of Gong Cha’s global expansion strategy to scale to 10,000 sites by 2032. In the UK, Gong Cha currently operates 13 stores. Jinziex’s first Gong Cha locations are expected to open in April with stores in Sidcup in south east London, Gravesend in Kent, Romford in east London, and Hornchurch in Essex. Paul Reynish, global chief executive of Gong Cha, said: “Across Europe we continue to see fantastic interest from potential franchisees keen to bring the world’s fastest-growing tea brand to their market. But where it mattered most to us was the UK, which is one of the most exciting markets for us globally. After a careful selection process, we’re delighted to partner with Jinziex – a proven and highly respected food and beverage franchise operator – that match our ambitions to become the clear bubble tea market leader in the UK. As a market, the UK has huge potential for us. It’s a market that is constantly evolving, ripe with innovation, and made up of consumers willing to try new and exciting products. We firmly believe it is one of the most significant markets in the global food and beverage industry, and one of the reasons we relocated our global headquarters to London in 2019. Now, with our expanded footprint, we want to play a leading role in shaping the next decade of the UK’s food and beverage industry, while cementing Gong Cha as a household name. We can’t wait to show the UK how tea is meant to be.” Brar said: “Gong Cha is a fantastic global brand with a truly unique customer offer that plays into the heart of changing consumer tastes and trends. Leveraging our experience from scaling a highly successful Costa Coffee franchise, our relationships with leading landlords, and operational expertise, we are highly confident that we can scale quickly and ensure Gong cha becomes a household name.” Founded in Taiwan in 2006 and headquartered in London since 2019, Gong Cha is known for its high-quality, freshly brewed whole-leaf bubble tea. The product is totally customisable, with more than 600 possible flavour combinations. In 2009, the brand expanded overseas for the first time and has grown significantly to operate more than 2,100 locations across 28 countries. Gong Cha’s partnership with Jinziex builds on a period of strong strategic progress and momentum. In late 2023, Gong Cha signed its largest ever master franchise agreement to open at least 300 locations in the Middle East with Shahia Foods Group. Over the next decade, the group has ambitious targets to scale to more than 10,000 global locations, with a significant proportion of growth coming from new markets in Europe, including the UK. Goldex is one of the UK’s largest Costa Coffee franchisees. After partnering with the brand in 2005, it has grown to operate more than 50 stores across Kent, Sussex and the south east of England. The group, which is led by Brar, is also a significant franchisee for Kaspa’s Desserts, operating 100 dessert diners in the UK and Morocco, as well as five Döner & Gyros quick service restaurants. Across the group, Goldex employs more than 1,000 employees in the UK and Morocco. Gong Cha features in Propel’s highly anticipated International Brands report, featuring the 100 leading international brands in UK hospitality, launches this month and is available to pre-order now. This in-depth report explores company histories, leadership structures, site numbers and turnover figures – an essential tool for industry professionals navigating the UK hospitality market. The top 100 will include expanding brands from markets such as the US, Canada, Europe, Australia and Asia. The guide will be sent out as two files – an introductory PDF featuring deep dives into international brands from Propel’s writers, and a fully searchable Excel sheet for easy access to key data. The analysis includes Matteo Frigeri, founder of Seeds Consulting, on the challenges of recruiting the right UK franchisee, Michael Ingemann, director of Think Hospitality, on why European brands chose the UK for expansion, and Meaningful Vision founder Maria Vanifatova examining the UK market for quick service restaurant operators. The International Brands report will be available from 9am on Friday, 28 March for £595 plus VAT, with existing Premium Club members able to purchase at a discounted rate of £395 plus VAT. Premium Club members will receive it free on Friday, 9 May at 9am. Pre-order your copy today by emailing: kai.kirkman@propelinfo.com.
Premium Club subscribers to receive next Who's Who of UK Hospitality on Friday: The next Who’s Who of UK Hospitality will be released to Premium Club subscribers on Friday (21 March), at midday. Another seven companies have been added to the database, which now features 894 companies. This month’s edition will also include 52 updated entries. The companies, listed in alphabetical order, will have their most recent results reported as well as broader information around Ebitda, plans and trading style available. The database merges Companies House information, interviews and other public information to provide an easy to reference and exhaustive guide to the sector. Premium Club subscribers also receive access to five other databases: the Multi-Site Database, the New Openings Database, the Turnover & Profits Blue Book, the UK Food and Beverage Franchisor Database and the UK Food and Beverage Franchisee Database. All Premium Club subscribers will be offered a 20% discount on tickets to Propel paid-for events including Excellence in Pub Retail (May 2025) and discounts on specialist sector reports such as the International Brands report. Operators that are Premium Club subscribers are also able to send up to four members of staff to each of our four Multi-Club Conferences for free. Premium Club subscribers receive their daily Propel Info newsletter 11 hours earlier than standard subscribers, at 7pm the evening before. They also receive videos of presentations at eight Propel conference events two weeks after they are held. This represents around 100 videos of industry insight over the course of the year. Premium Club subscribers will be sent a dedicated monthly newsletter that will highlight key updates in the sector and direct subscribers to all the vital content their membership offers. Premium Club subscribers also receive exclusive opinion columns every Friday at 5pm, which include the thoughts of Propel group editor Mark Wingett and a host of industry leaders from across the sector. A Premium Club subscription costs an annual sum of £495 plus VAT for operators and £595 plus VAT for suppliers. Companies can now have an unlimited number of people receive access to Premium Club for a year for £995 plus VAT – whether they are an operator or supplier. Email kai.kirkman@propelinfo.com today to sign up.
Hotel operator ‘trading well’ after closing loss-making venue: CQK Group, which now operates two hotels in Surrey, has said it is “trading well” after closing its loss-making third hotel. Hadlow Manor, based in Tonbridge in Kent and dating to 1812, ceased trading in January 2023, although the property is still held by the group. In the year to 31 March 2024, the company reported turnover of £5,968,545 from its remaining operations. This compared with £7,039,783 in 2023 – including £5,738,546 from continuing operations and £1,301,237 from discontinued operations. Pre-tax profit in 2024 was £2,032,758. This compares with £616,994 in 2023 – £663,479 from continued operations and a loss of £46,485 from discontinued operations. No dividend was paid (2023: nil). Director Geoffrey Goddard said: “At the date of the approval of the accounts (December 2024), the hotels continue to trade well and are benefiting from a continuous programme of reinvestment. On the rental side, income has remained consistent and will continue to do so moving forward. The directors are confident that the company is well positioned to meet the challenges that lie ahead.” The company operates Reigate Manor in Reigate and Hartsfield Manor in Betchworth under the banner of Manor Collection.
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