Bubble Tea Business Info for Newbies
Bubble tea, more commonly known as boba, is a tea drink that has been around since the 1980’s. It originated in Taiwan and is typically made from a mixture of tea and milk or fruit with tiny balls of tapioca or fruit jelly. There are many variations on these combinations available with a wide range of flavors available in many shops.
For those of you who love bubble tea and have often considered opening one of these types of shops, there is more to know than what kind of recipes taste best. There is a lot to learn about bubble tea shops and we’re going to walk you through the basics.
The plan you have in mind for your store is uniquely yours and will reflect a price tag to fit. Therefore, these costs are an approximate estimate of what you may need to spend to cover the essentials for getting your business off the ground.
This is your most vital expense and it could run you well into the middle five-figures or higher depending on the location you’ve chosen. There’s a balance you need to consider here, if your shop is in a busy section of town or a popular neighborhood your rent prices will be significantly higher but you could attract more regular clientele and routine foot traffic.
The type of setting is also important, are you planning on getting a storefront or renting kiosk space in a mall or promenade? This may affect what you plan to serve beyond bubble tea, if that is something you are considering for your enterprise. These decisions will also play a role in your initial expenses.
You can go one of two ways here, buy good, sturdy used equipment which will get you a break on the price or buy it all brand new. This investment will probably run you about $10,000 or more depending on what brands and models you select.
To get started, the equipment you will need at first is a blender, cup sealing machine, refrigerator, an ice maker, shakers, and a stove. Gas or electric doesn’t matter. It’s your call there.
This cost will also fluctuate based on the diversity of the menu you plan to offer and any additional items you wish to serve outside of tea. But if we’re looking at just the ingredients necessary for making boba drinks, you need the teas, the milk, fruit, flavor powders, and the tapioca balls. This can run you a couple thousand but possibly more if you want to serve a wide variety of flavors and drink combinations.
Other Costs to Consider
This doesn’t take into account other costs such as marketing, permits, insurance and employees. These can all vary based on your particular situation, but you may also be able to reduce all of these costs if you buy into a franchise opportunity. Some newbies prefer to have the support system of an established brand behind them as they’re starting out on their first small business venture.