The beverage category has exploded with growth, driven by brands like Dutch Bros, 7 Brew, Scooter's, and Swig. But HTeaO deserves a seat at that table as it transforms from a regional concept into a national contender.
The iced tea chain generated over $147 million in sales in 2025, marking a 26.7% year-over-year increase, according to Technomic. It finished last year with 178 locations in just eight states.
The company, which began as a family-owned concept in 2009 in Amarillo, Texas, is now ready to push the gas even more with newly-secured investments from Dallas-based private equity firms Crux Capital and Trive Capital, building on the firms’ previous investments in 2023. The iced tea concept has also brought on a seasoned industry veteran in Brian Wise as CEO, and he is charged with leading the next phase of expansion.
Wise spent the past 7.5 years at Freddy’s Frozen Custard and Steakburgers, most recently as chief operating officer. Prior, he was partner/COO of HCI Hospitality. With Wise’s addition, HTeaO co-founder and previous CEO Justin Howe has moved to executive chairman of the board.
While the burger-to-beverage pipeline isn't common, Wise said the move felt natural.
"I've been part of great organizations, and like those, this provides a truly authentic experience," he said during a recent interview.
Wise was also drawn to HTeaO’s customization model, including 20 base tea flavors. Customers can mix-and-match flavors and choose their sweetness levels. They can also order from the brand’s secret menu. Wise’s go-to is from that menu — the “Skinny Cowboy,” a mix of half sweet blueberry green and half Ryan Palmer (and a quarter of the sugar of a regular Cowboy).
HTeaO also provides grab-and-go snacks and such offerings will become a bigger priority on his watch. There is also a lot of potential in coffee, he said.
“Our premium snacks allow us to provide more opportunities for visits and it’s an area that is growing. Guests are looking for more snacks, especially in the mid-afternoon,” he said. “We’re also growing in the morning, and our coffee program continues to grow. As we learn how to execute coffee the HTeaO way, that can be an added point of differentiation.”
Differentiation is HTeaO’s sweet spot. Most of the fast-growing beverage concepts specialize in espresso-based beverages, energy drinks, and refreshers, HTeaO is leveraging the growing demand for tea/iced tea with minimal competition. Even as tea concepts like Chagee and Gong Cha pull from public markets to expand in the U.S., HTeaO is standing out simply by focusing on its water; the company uses a reverse osmosis system to purify tap water.
Wise said the process requires an “incredible amount of engineering and adds back the appropriate minerals to make sure the flavor of the tea comes through.”
“It is the centerpiece of the brand,” he said. HTeaO even sells water by the gallon and 5-gallon, as well as premium ice. It also has a water refill program.
“It’s a quality component that is what leads to the consistency of the product,” he said.
As HTeaO builds on its now nearly 200 locations, water quality will continue to be a priority. Wise will also pull from his previous experience to focus on training and operations to ensure the experience of dine-in customers matches the experience of drive-thru customers. The business is split evenly between the two channels.
“The brand and experience is the heartbeat of what we do,” he said. “We are focused on growing frequency and guest count and sales through strong guest relationships. We have a successful franchise model that’s been proven. Now we’re making investments in the guest experience, in operations, and training.
“We’re building support structures so as we scale, we can resonate with guests who are looking for a customized, quality product and an authentic experience.”
Wise emphasized an investment mentality that supports what Howe, and his parents Gary and Kim Hutchens, built 17 years ago. That means not only strengthening support structures and bolstering food and coffee programs, but also recruiting “next-level executives.” In February, the chain added Chris Phillips to the CFO role and the team is “on the hunt” for more, Wise said.
As for what else is next, Wise simply said, “You’re going to see us build on what we have. We’re going to be artful in how we’re developing markets across the U.S. That’s the story in the future for us. It’s hard not to be excited.”
Contact Alicia Kelso at Alicia.Kelso@informa.com
Follow her on TikTok: @aliciakelso
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