Gong Cha Korea posts double-digit sales growth in first half amid crowded milk tea market

Gong Cha Korea said Wednesday its total sales for the first half of this year rose 11.4 percent from the same period a year earlier, sustaining growth momentum even as foreign milk tea brands continue to enter the South Korean market.

Sales in June alone climbed 17.1 percent from May, while store visitors rose 15.4 percent over the same period, the company said. "Customer-focused store innovation, product diversification built around tea, and synergies with our brand ambassador have together laid the foundation for growth," a company official said.

Gong Cha Korea plans to steadily expand the number of stores operating under its Gong Cha 2.0 format. The company introduced the redesigned concept — featuring a new interior — at its Seolleung and Gangnam flagship locations in 2024, and more than half of its directly operated stores have since converted to the Gong Cha 2.0 format.

The company is also broadening its tea product lineup. It has added new flavors to its signature milk tea range and expanded into dessert categories, including ice cream. After rolling out distinctive menu items using signature toppings and products developed through brand collaborations, the company recently launched a low-sugar milk tea series reflecting the wellness trend.

Its brand ambassador campaign has also contributed to growth. The ambassador advertisement surpassed 100 million cumulative impressions within three months of its release, and a collaboration drink sold at a rate of six cups per minute.

Gong Cha Korea is also actively deploying an automated beverage-making device called "Superwoo" to improve operational efficiency at its stores. The machine is part of the company's digital transformation strategy, using standardized recipes to reduce taste variation and cut drink preparation time. "We will continue to strengthen our position through menu development tailored to evolving consumer needs and digital-driven operational innovation," a company official said.