HTeaO transformed from a small Amarillo hamburger restaurant to a booming franchise empire by focusing on premium, 100% natural iced tea. You’ll find in-store water filtration systems in each location, ensuring exceptional quality across their more than 500 flavor combinations.
After launching franchising in 2018, they licensed 22 locations in just 30 days and now aim for 500 stores by 2026. Their strategic partnerships and franchisee support system reveal why this Texas concept is revolutionizing the beverage industry.
From Hamburger Joint to Tea Empire: The Origin Story
Every great business has humble beginnings, and HTeaO‘s story starts in an unexpected place—a family hamburger restaurant in Amarillo, Texas.
In 2008, the founder noticed something surprising: fresh-brewed iced tea was becoming their best-selling item. Rather than ignoring this trend, he saw an opportunity.
By 2009, he launched Texas Tea, focusing exclusively on premium teas and water. The concept proved successful enough to expand to Midland, Texas, where it rebranded as HTeaO in 2014.
Four years later, the first franchise prototype opened its doors in Midland, marking the beginning of a remarkable growth trajectory.
What started as a simple observation about Texans’ love for iced tea blossomed into a specialized concept that would soon sweep across the southern United States.
The company found particular success in the Permian Basin region, capitalizing on the area’s economic growth and the hot semi-arid climate that makes cold beverages especially appealing.
The Perfect Recipe: Quality Tea and Proprietary Water Filtration
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What’s the secret behind HTeaO’s meteoric rise in the beverage industry? It starts with an unwavering commitment to quality that’s built into their franchise model. Each location features a custom water purification system—a proprietary filtration setup that guarantees consistently clean, great-tasting water as the foundation for every drink.
You’ll find no artificial ingredients here. HTeaO crafts all its teas using 100% natural ingredients, which you can see being freshly brewed at in-store stations. Their team prepares both sweetened and unsweetened varieties daily.
This combination of purified water and premium ingredients creates what the company proudly calls the “absolute best quality iced tea” available. Their focus on water quality reflects a broader Texas ethic of innovation and environmental accountability.
Driving Growth Through Strategic Franchising
Few business stories rival HTeaO’s explosive entry into franchising. When CEO Justin Howe launched the franchise model in 2018, he licensed 22 locations in just 30 days, setting the stage for what would become a fast-growing iced tea phenomenon.
You’ll find Howe’s hands-on leadership evident in every aspect of the operation—from site visits to direct franchisee communication. This approach has attracted a dynamic network of franchisees, including former NFL players and PGA Tour golfers.
The company’s 2023 partnership with Crux Capital and Trive Capital accelerated its expansion. Meanwhile, HTeaO’s robust training programs and supply chain systems support franchisees at every step.
Like how Dell Technologies scaled after moving to Round Rock, HTeaO’s Texas-based operations have fueled its financial and geographic growth.
500 Flavor Combinations: How HTeaO Stands Out in the Beverage Market
While many beverage chains stick to a basic menu, HTeaO has disrupted the iced tea landscape with 500+ customizable flavor combinations that turn every visit into a unique experience.
You’ll find their filtration system and natural ingredients ensure consistent quality across an expansive self-serve menu. The drive-thru and walk-in formats allow quick, efficient service tailored to busy lifestyles.
Unlike coffee shops or soda chains, this tea brand offers fun twists like “Turbo Tea” and exclusive collabs with brands like Yeti, creating a product and retail environment that stands apart from traditional beverage competitors.
Beyond Tea: Diversifying Product Lines and Strategic Partnerships
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HTeaO’s expansion into a lifestyle brand is driven by three smart diversification strategies.
First, their stores offer complementary products like Yeti tumblers, Clif Bars, and Clint & Sons Beef Jerky—boosting transaction sizes with impulse-friendly add-ons.
Second, brand awareness has grown through celebrity connections, including a campaign with “Yellowstone” actor Cole Hauser, reinforcing the company’s rugged Texas identity.
Lastly, partnerships like the Just Desserts collaboration reflect HTeaO’s willingness to explore seasonal innovations and limited releases. The involvement of professional athletes as franchisees demonstrates the business’s strong crossover appeal.
The Sun Belt Expansion: Planning for 500 Stores by 2026
HTeaO’s private equity partners bring three critical resources to the table:
- Enhanced focus on unit-level profitability
- Advanced franchisee support infrastructure
- Equity participation options for key employees
The brand is on track to open around 130 locations by the end of 2024, mainly across the Sun Belt. The plan reflects a careful balance of scalability and sustainability, with tools in place to help franchisees succeed as the company targets 500 locations by 2026.
Afternoon Beverage Market: Capturing the PM Side of the Road
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While most drink brands chase the morning rush, HTeaO has carved out its own space by serving the afternoon iced tea crowd.
Their drive-thru setup makes it easy for commuters to grab a refreshing beverage during lunch breaks or after-school runs—what the brand calls the “PM side of the road”.
Cost-efficiency is a central pillar of their approach, with franchisees able to offer affordable premium drinks while maintaining strong margins. New products and limited-edition teas help sustain consumer interest during slower dayparts.
Building a Culture of Support: How HTeaO Empowers Franchisees
Customer traffic alone doesn’t build a great franchise—support does. HTeaO has built a culture of active franchisee engagement that reflects the company’s collaborative spirit.
Founder involvement is ongoing, with regular site visits, training sessions, and roundtables that encourage feedback and alignment.
Franchisees benefit from:
- Structured onboarding and operational training
- Ongoing peer group collaboration and communication
- Performance incentives that reward top operators
The equity funding structure supports this ecosystem, offering capital access and shared growth opportunities. Together, these systems build a network where entrepreneurs feel supported and valued—a key ingredient in HTeaO’s rapid rise.
