How much does it cost to open a bubble tea shop? What is the price range for drinks at a bubble tea shop?
Written by Shawn
How much does it cost to open a bubble
tea shop?
What is the price range for drinks at a bubble tea shop?
In modern life, drinking a drink is a relaxing and enjoyable thing.
A cup of hot coffee starts a wonderful morning.
A cup of green tea to relieve the greasy feeling of lunch.
Enjoy a cup of bubble tea with an afternoon snack.
Paired with a variety of toppings, it’s even more mouth-watering!
Especially its bubble milk tea, which has won praise from all over the world.
Beverages are closely related to our lives.
So how much does it cost to open a bubble tea shop?
Let Fokus Inc takes you into the world of bubble tea.
Firstly, decide the style of your shop and know your estimate budget.
Here are some different styles of shops for your reference:
1. Starting with USD$20K, a simple small stall can start a business!
Starting a business is a dream for many people, and there are many ways to do it. We’re glad you took this step!
In normal situation, the costs include:
1) A Small stall
2) Tea buckets (3-4 buckets for different drinks) and utensils such as shaker, tapioca scoop, powder scoop, tea strainer, etc.
3) Raw materials (such as syrups, cooked toppings, bubble tea flavor powder, and cooked tea: Black tea, Green tea, White gourd tea, Oolong Tea)
· Raw materials account about 5% of total cost.
The advantages are:
Low cost, High profits, Simple menu, Less materials to prepare and High replicability (easy to franchise).
It’s a relatively easy type of bubble tea shop to start with.
There are many stores like this in Taiwan. Many of them started at night markets, and many have expanded their operations through franchising.
2. Starting with USD$50K, a wide range drinks selection of to-go bubble tea shop!
Bigger shop with wider selection of drinks.
At this moment, we are not only selling drinks, but also services.
The costs contains:
1) Store rental fee (depends on shop’s size/area and in which country)
2) Equipment (topping cooker, tea cooker, blender, shaker machine, tea buckets, sealing machine, refrigerator) POS machine or Kiosk (depends on your budget)
3) Raw materials: Bubble tea flavor powers, Toppings, Tea, Smoothies, Juice, Coffee, special drinks
4) Personnel costs (at least three staffs for cashier, cooking, preparing drinks)
5) Utility bills (depends on your shop’s size)
If your store has an arcade, it can protect customers from the sun and rain.
You could also place 2-3 chairs next to it for waiting customers to sit.
Interesting case sharing, our customer in Philippine shared that they do not provide free Wi-Fi and sockets for consumers to use. Because it may cause they stay for a while!
3. Starting with USD$150K, a comprehensive bubble tea shop with meals and seats!
It’s very important that you want your shop to match the meal with the drink or the drink with the meal.
The costs contains:
1) Store rental fee (depends on shop’s size and in which country)
2) Equipment (topping cooker, tea cooker, blender, shaker machine, tea buckets, sealing machine, refrigerator) but also other machines for making meals and tables & seats !
3) Raw materials: Bubble Tea flavor powders, Toppings, Tea, Smoothies, Juice, Coffee, special drinks/ materials for meals.
4) Personnel costs (In addition to the original store clerk, there are also chefs and waiters/waitresses who need to prepare and deliver meals.)
5) Decoration, renovation, branding design fees (Bright signs and storefronts)
6) Utility bills (depends on your shop’s size)
7) Training (drinks and meals preparation, customer service)
8) Social media management & advertising (improving brand awareness is very important)
We also have a Vietnamese customer who opened a bubble tea shop in the U.S. They pair bubble tea with Vietnamese pho and completely create a new style of their own!
Fun facts, equipment is important to produce bubble tea.
Our customers bought a sink from us and wanted to install in their store in Australia. At that moment, the machines had arrived, but they could not be installed. The reason was that the voltage spec was different, and there were safety concerns about the risk of fire for vendors installing them in department stores. Therefore, we would also like to remind you of relevant regulations and laws!
4. Starting with USD$300K, a distinguished restaurant with bubble tea!
This type of store not only requires food and drinks quality, but also pays more attention to dining environment and service quality.
The cost of opening this style of store, in addition to all the items mentioned above. They’re more special things maybe can give you more ideas!
Brand uniqueness:
1) Providing menus in multiple languages, it doesn’t matter where do your customers come.
2) Special event: Customers participate in the process of making drinks, drinking more safely and increasing connectivity.
3) All flowers in the store insist on using real flowers, showing 100% sincerity. If a store is completed with the utmost caution from decoration to small decorations, it will naturally not be too casual when it comes to ingredients.
Running a business is not easy. No matter the scale is small or large, there are points that need to be carefully considered. Budget has always been the first consideration. Subsequent operations also require constant modification and adjustment in the process to find the most suitable method.
Always keep your faith no matter what happens!
Just focus well on what you’re planning, Fokus will be here with you.
What is the price range for drinks at a bubble tea shop?
Take an example of the price in the U.S.
|
Product Item |
Price USD |
|
Fresh Tea: |
$ 2-3/cup |
|
Milk Tea |
$ 2.95-3.5/cup |
|
Bubble milk tea |
$ 4-7/cup |
|
Soda Drinks |
$3.25-4.25/cup |
|
Fruit Tea |
$ 3-4/cup |
|
Juice |
$ 3.75-4.25/cup |
|
Slushie |
$2.5-4/bowl |
|
Coffee |
$ 4-7/cup |
|
Toppings |
$ 0.3-0.5 |
Menu of Bubble Tea shop (for example)
Written by Anakin
How much does it cost to start a bubble tea shop?
NO MATTER why you want to open a bubble shop, the Budget is always a first issue, How much does it cost to open a bubble shop? The answer can be vary depending on the scale you want and the variety of options you plan to offer
Initial Inventory ( 2000-10000)
Do you know how to make a bubble tea? The essential materials include flavor powder, tea leaves, milk, sweeteners, and toppings like boba or jelly.
Now you have the material, how to deal with it? Typically, you need some equipment like tea brewers, refrigerators to protect materials and sweetener dispensers. Take the sink to process the ingredients for example…usually costs 10000-50000, you can reduce costs by purchasing second-hand equipment, helping to lower your overall expenses.
Finally, we need packaging like straws, cups, and seals. Which is important for convenience and your brand's presentation.
For KIOSK or BEVERAGE TRUCK, we recommend you prepare 3 months of ingredients for the first order. and placing another order according to the situation.
If you find a shopfront, you can consider opening a teashop! More stable, more serving offer, but higher Initial cost because it provides more options for beverages, Maybe you need a shaker or heater, a blender for smoothies, or even more for Signature!
Foods are sometimes offered to go together with beverages! This may increase costs, but if done right, it has the potential to attract a broader customer base, leading to greater benefits.
Rent
Whether you're renting or buying a space to open a store, it involves a substantial expense. Balancing the potential customer base and costs is a crucial consideration when searching for a location. In the United States, the average cost per square foot for independent commercial space is around $300. Based on this, the estimated cost for a bubble tea shop with an average area of 1500 square feet would be approximately $450,000.
Keep in mind that landlords may request a deposit ( 1-2 months rent) , so it’s essential to be prepared with additional funds in early stages
Furniture
A small bubble tea shop may not require seats, especially if it is to-go only. However, even to-go shops can consider adding benches or limited seating for customers to use while waiting, enhancing the storefront's image.
For shops offering meals, the choice of furniture becomes a cost consideration, as it goes beyond mere decoration to ensure customer comfort.
Providing ample lighting and incorporating furniture that creates different atmospheres is crucial for setting the right ambiance
Utilities
Utilities like water, electricity, waste disposal, and internet may incur a monthly cost of approximately $1,000
Marketing:
You'll need to engage in advertising to make your brand known, such as creating a website, designing a memorable logo, crafting a catchy marketing slogan, and managing social media.
Labor costs:
If you're solely handling operations, additional manpower may not be necessary. However, in most cases, it's important to consider factors like salaries, insurance, and other associated costs when contemplating staffing requirements. ($15-$27 per hour)
Professional services:
Apart from the initial business permit and health certification, as your business grows, The prices for licenses and permits typically range between $50 and $400.
You may need to engage consultants such as lawyers and accountants for ongoing support and advice.
Finally, having an extra amount of money set aside as an emergency fund is crucial. You never know what unexpected situations may arise, so having funds readily available is essential to handle unforeseen circumstances.
We can conclude that the most crucial factor influencing the opening costs is the rent. Therefore, considering an affordable area should be the primary consideration when selecting a storefront.
Having your own business is an exciting thing. Fortunately, at Fokus, we provide all the assistance you need to start, whether it's raw materials, equipment, or professional guidance. You can find more information on our official website.
Keeping is harder than winning, don’t forget the initial intention; it's the key to sustainable business. Wishing everyone a successful venture ahead.
