Molly Tea dispute leaves Brooklyn shop operating under question marks

A popular bubble tea store on Eighth Avenue has changed its sign to “? Tea” and is offering a 20% discount on all items following a federal legal injunction in a dispute between its local operator and its China-based parent company.

Molly Tea, a popular Chinese bubble tea brand, opened its first U.S. store in Flushing in April 2024. The wildly popular outpost generated an average monthly revenue of $480,000, and its success spawned additional locations across the city. Its Eighth Avenue location (5909 8th Ave) opened in late December 2024. There are three additional locations in the greater New York area: two in Manhattan and one in Jersey City.

On Sunday, June 14, 2026, the bubble tea store on Eighth Avenue remained open. The original Molly Tea facade was covered by wood slats, with three large question marks painted on them in white. Inside the store, all Molly Tea names, signs and logos had been removed. Signs inside the shop read, “Store upgrade in progress.”

On June 8, a federal judge issued an injunction barring the local operator from using the brand’s name, logo, recipes or supply chain. The Molly Tea parent company accused the operator of creating a separate, unauthorized company and bank accounts that funneled millions of dollars in store profits. In a now-removed post on the Chinese social media platform Xiaohongshu, the operator alleged that the brand abruptly reduced his equity stake from 80% to 30% and forced him to transfer all leases, store management and employee management rights.

At the Brooklyn store, customers streamed in and ordered its signature jasmine milk tea. The average wait time was around 20 minutes, which some patrons noted was shorter than usual.

Jasmine and Jeffrey came to Eighth Avenue with friends to spend Sunday. Jasmine said she knew of Molly Tea but was unaware of the legal dispute.

“We don’t live in the area,” she said. “When we passed by today, I saw there is 20% off on everything and the line was not that long.”

Jeffrey said he had seen news about the dispute on social media. “I saw that the owner is having a lawsuit with the parent company, but I don’t know too much,” he said. The group had been to the store before and liked its offerings.

Lina, another customer waiting for her drink, said she had been to the store before but was not a regular.

“I pass by all the time, but the line was always so long,” she said. “Today the line was not that bad and there is 20% off.”

She heard about the legal battle online and speculated that the store might close soon. “I’ve heard that there is a lawsuit or something. I think they are trying to sell out their inventory here to save some money,” she added.

Staff at the store declined to comment on the lawsuit but said the store continues to operate as usual.

According to IBISWorld, a market research firm, the U.S. bubble tea shops industry had a market size of $2.7 billion in 2025. IBISWorld said the industry grew 2.9% in 2025 and had grown at a 10.2% annualized rate between 2020 and 2025. Over a dozen specialized bubble tea shops dot the stretch of Eighth Avenue between 40th and 60th streets, with additional restaurants and cafes serving the flavored drink on their menus.

Despite the legal drama, as long as the 20% discount stands and the jasmine milk tea keeps flowing, local customers seem perfectly content to wait out the corporate storm in line.