Gong cha reports record $600m system sales in 2024
Group revenue also went up 12% compared to the prior year.
Gong cha reported record system sales of over $600m for the 52 weeks ending 31 December 2024, with group revenue up 12% to $190m for the year, driven by strong growth in Japan and Asia Pacific.
The group expanded into five new markets, including Saudi Arabia, Morocco, Mauritius, Honduras, and Puerto Rico. In 2024, Gong cha opened 240 new outlets, including new flagships in Korea and its first stores in the Middle East, taking the total number of global stores to 2,162 at the year's end.
The brand also launched the 'Gong cha 2.0', a modern new store design that brings the brand to life and appeals to a wide group of consumers. As part of this, Gong cha is also rolling out its new ‘Digital Kitchen’, which combines digital kiosks and innovative, industry-leading dispensing technology that has been proven to increase average order values and drive operational efficiencies by as much as 30%.
Gong cha also rolled out a new brand positioning – How Tea is Meant to Be – reflecting its focus on whole-leaf tea and ingredient provenance. In addition, the Group launched new marketing initiatives with Final Fantasy XIV and launched viral seasonal products, which led to more than 1.3 billion earned media impressions and introduced new audiences to the brand.
The Group’s strong momentum has continued into FY25 and is trading ahead of expectations. Earlier this month, Gong cha appointed Matthew McCormick as its new Global CFO. McCormick joined the Group from KFC UK & Ireland, where he spent just under six years. Working closely with Global CEO Paul Reynish, McCormick will help Gong cha unlock long-term, sustainable growth opportunities in new and existing markets. In FY25, the Group plans to launch into at least six new markets with an ambition to open a new store every day.
"It’s been a fantastic year for Gong cha. Reflecting our position as one of the world’s leading bubble tea brands, we want to create more tea-purchasing moments for consumers by showing them how tea is meant to be. This year, we’ve invested heavily in our supply chain and operations to bring the best whole-leaf tea to consumers, expanded our footprint through new stores and geographies, and focused on making our existing stores more efficient and profitable for our franchisees. We’re delighted this has translated into a really strong year for Gong cha,” Reynish said.
The brand announced that it plans to launch in six markets this year.
