Do we like them?

Do we like Gong Cha?

Global bubble tea chain with about 2,200 stores in 30+ markets; founded in Taiwan, global HQ in the UK.

Our score: 5 out of 10. Popular and widely spread, but we found little proof of good deeds. Korean franchisee disputes and a PE sale leave us undecided.

Gong Cha began in Taiwan and is now a bubble tea giant with nearly 2,200 stores in about 33 markets. Its global operation is run from the UK, and one founder, Wu Zhenhua, is still involved in running it.

It's been passed around private equity. TA Associates bought it in 2019 and wanted around $2 billion this year. Nikkei Asia reported Bain Capital is buying it for about US$635 million, well under that ask.

In South Korea, things are tense. Around 70 franchisees reported the company to the Fair Trade Commission in February over fees collected through a purchasing agency. A franchisee council also filed a criminal complaint over personal data. The company called it groundless, and we found no ruling.

In Australia, a 2019 Fair Work Ombudsman audit recovered unpaid wages at several new food chains, Gongcha among them. The court case in that coverage was against ChaTime, a different chain. So we're at a middle score.