business plan for bubble tea

Bubble Tea Business Plan Template

Written by Dave Lavinsky

Bubble Tea Business Plan

You’ve come to the right place to create your Bubble Tea business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Bubble Tea businesses.

Below is a template to help you create each section of your Bubble Tea business plan.

Executive Summary

Business overview.

Goldenberry Bubble Tea Bar is a startup bubble tea shop located in Omaha, Nebraska. The company is founded by two friends, Chu Lin and Dave Zhu. Together they have over thirty years of experience in the food and beverage industries, from creating recipes and serving customers, to importing and exporting produce and desserts. They are highly skilled in restaurant management, creation of menu items, service to customers and are known for their integrity and leadership skills. They own two restaurants together in Omaha. With their extensive network of clients and connections, Chu Lin and Dave Zhu have decided to bring the famous bubble tea of Taiwan to Omaha, Nebraska.

Product Offering

The following are the products and services that the Goldenberry Bubble Tea Bar will provide:

• Custom bubble/boba ball tea beverages
• Traditional and custom tea beverages
• Blended ice cream or cream beverages
• Frozen fruitsicles and ice pops
• Imported desserts
• Customer dining area

Customer Focus

The Goldenberry Bubble Tea Bar will target customers who like to try new flavors and frozen desserts within the population of Omaha. In particular, the primary target will be young adults and teens, who are known to be most open to new foods and flavors. Secondary targets will include those who enjoy ice cream or fruit-based blended beverages. In addition, imported desserts will be offered to all. The Goldenberry Bubble Tea Bar will bring the best industry practices to their target audience, while delivering premium service and garnering high-yield profitability.

Management Team

Goldenberry Bubble Tea Bar will be owned and operated by Chu Lin and Dave Zhu. Together, they have over thirty years of restaurant experience, including establishing key food distribution channels in Taiwan and the U.S. They own three restaurants in Taipei, Taiwan and two restaurants in Omaha. Chu Lin and Dave Zhu have been lifelong friends who will be responsible for different areas of management in the business.

Success Factors

Goldenberry Bubble Tea Bar will be able to achieve success by offering the following competitive advantages:

• Friendly, knowledgeable, and highly-qualified partnership of successful restaurateurs.
• Unique natural ingredients and exciting new flavors are introduced to the target audience.
• Exotic menu ingredients, boba balls, bring new textures to beverages.
• Superior customer service, with friendly and well-trained team members.
• Maintaining the highest standards of cleanliness in all food preparation, use of equipment and the general premises of the business.

Financial Highlights

Goldenberry Bubble Tea Bar is seeking $200,000 in debt financing to launch its tea bar business. The funding will be primarily for building out the tea bar property location, purchasing blenders and food appliances, equipment for food preparation, indoor furnishing, computers and office supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, lease payments, and marketing costs for advertising and social media marketing.

The breakdown of funding is as follows:

• Building location build-out: $20,000
• Food equipment, appliances, computers: $10,000
• Overhead expenses: payroll, lease, utilities (3-months): $150,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph below outlines the pro forma financial projections for Goldenberry Bubble Tea Bar.

Company Overview

Who is goldenberry bubble tea bar.

The Goldenberry Bubble Tea Bar is a newly established bubble tea beverage business in Omaha, Nebraska that specializes in unique beverages first discovered in the night markets of Taiwan. Partners Chu Lin and Dave Zhu, own five restaurants together and bring a highly-experienced cadre of leadership skills to build relevant profitability levels for investors. The unique value propositions of Goldenberry Bubble Tea Bar are the distinctive flavor profiles and exotic presentations of teas, ice cream, fruit beverages, and imported desserts to this experience. These offerings will appeal primarily to young adults and teens, due to the unique properties of the beverages, with the secondary targets of all ages, who will be attracted to the ice cream and fresh fruit offerings. There will also be a small dining area for customers.

Goldenberry Bubble Tea Bar Management History

The Goldenberry Bubble Tea Bar business consists of two experienced restaurateurs with distinctive areas of expertise:

Chu Lin is a restaurant owner who created bubble tea recipes while living in Taipei. With his childhood friend, Dave Zhu, a highly-experienced distributor in food import/export channels, their first investor group was formed to build two additional restaurants in Taiwan. Those investors earned twenty-eight percent on their investment within a four-year plan. Chu Lin and Dave Zhu then emigrated to the U.S., became citizens in 2005, and formed a legal partnership with 51/49 percent ownership shares. They purchased two additional restaurants in Omaha with investor support. Within a six year plan, investors earned twenty-four percent on their initial investments. The partners are experienced in leadership skills, client relationships, business development and general management. With the five restaurants currently providing long-term growth and success, Chu Lin and Dave Zhu want to bring the tastes of Taiwan to Omaha.

Since incorporation, Goldenberry Bubble Tea Bar has achieved the following milestones:

• Registered Goldenberry Bubble Tea Bar, a legal partnership, to transact business in the state of Nebraska.
• Holds two long-term, set-pricing contracts with import firms.
• Has hired the office manager for the business.
• Has secured the business location and built it out within budget and on time.
• Has hired and is training three part-time employees.

Goldenberry Bubble Tea Bar Products and Services

The following will be the products and services Goldenberry Bubble Tea Bar will provide:

Industry Analysis

• The bubble tea beverage industry in the U.S. is expected to grow over the next five years to $3 billion in revenue.
• Increasing numbers of coffee and tea drinkers have propelled the bubble tea business into popularity, particularly on the east and west coasts of the U.S.
• The wide variety of bubble tea beverages has strengthened the demand, due to an increasing number of beverage combinations and availability of fresh ingredients.
• Industry reports suggest bubble tea will continue to grow in popularity due to younger generations who prefer beverages sweetened naturally, including fresh fruit blends, and they also prefer cold beverages over dairy options, such as milk.
• Bubble tea is quickly growing in popularity and remains a sought-after beverage, which indicates a growing interest and rising opportunity for profitability within this industry sector.

Customer Analysis

Demographic profile of target market.

Goldenberry Bubble Tea Bar will target those individuals who are seeking new flavor profiles and unique textures within the beverage sector. These individuals will be, according to industry statistics, primarily young adults and teens, who are early adopters within these sectors, followed by all ages who enjoy cold or frozen beverages and ice cream beverages. Within the Omaha region, there are few direct competitors and one indirect competitor, none of whom have the depth of varieties of bubble tea on offer, and none who have the extensive menu of ice cream and fruit beverages blends.

The precise demographics for Omaha, Nebraska are:

Customer Segmentation

Goldenberry Bubble Tea Bar will primarily target the following customer profiles:

• Young adults and teens who want new flavor profiles and unique textures
• All ages who want frozen, blended beverages with tea or coffee
• All ages who want beverages with cream or milk
• All ages who want imported dessert specialties from Taiwan

Competitive Analysis

Direct and indirect competitors.

There are currently two direct competitors and one indirect competitor for the Goldenberry Bubble Tea Bar in the city of Omaha, Nebraska. This creates a unique opportunity for this business as one of the first providers of this beverage product line.

Bergen’s Grocery & Deli Mart

This direct competitor is a mid-sized, local grocery store with an attached delicatessen and dessert shop. Situated in the city of Omaha, Nebraska, the grocery store is located ten miles from the location of the Goldenberry Bubble Tea Bar business. The grocery store sells ingredients that can be used to create bubble tea if the recipes were provided. The tapioca balls, known as bubbles or boba, are available at the dessert shop, and bubble tea is offered in three flavors. In addition, ice cream, ice pops and other items in the grocery store are alternatives to the offerings of the Goldenberry Bubble Tea Bar. The competitive advantage of the Goldenberry Bubble Tea Bar is found in the fresh ingredients of beverages, the customized recipes, and the boba balls that are offered. The dessert shop has an assortment of cookies, donuts, and cakes available; none are imported from Taiwan and none are identifiable as “specialties.” The owners of Bergen’s Grocery & Deli Mart, Dale Bergen and Marie Bergen, are the founders of the business who formed a C corporation at the time of incorporation.

The Wild Horse Coffee House

This coffee house, positioned seven miles from the location of the Goldenberry Bubble Tea Bar, is a direct competitor with a space that seats approximately twenty individuals. Bubble tea in three flavors is served, along with a variety of in-house roasted bean varieties of coffee. The wide selection of coffees lends itself to coffee beverages, however, none are cold or frozen and none include ice cream, cream, or are prepared with distinctive recipes. There are no desserts or specialties offered. Teas and tea beverages are offered at this location, along with wine and beer in a bar area. The legal entity formed for this business is a C corporation consisting of three equal shareholders; Denise Martine, Janell Martine, and Bruce Martine.

Mama Bear Coffee Shop

The Mama Bear Coffee Shop is an indirect competitor, although there is a service counter and a dining area offered, as does the Goldenberry Bubble Tea Bar. It is located seventeen miles from the location of the Goldenberry Bubble Tea Bar. Freshly-blended ingredients are not offered, although ice cream milkshakes are offered and blended on-site. No fruit juice blends or cream and tea beverages are available. No bubble teas are offered and tapioca balls are not available. Desserts include slices of pie, cake, and cookies. This business was founded by the owner, Jean Louise Tate, who formed a sole proprietorship in 1990.

Competitive Advantage

• Goldenberry Bubble Tea Bar has very few direct competitors at this time. Two direct competitors are within the Omaha area, however neither serves more than three options for bubble tea and no other fresh fruit or frozen beverages are offered. Because of this, there is a significant competitive advantage over any competitors.
• Exceptional bubble tea beverages in a wide variety of flavors are made with fresh ingredients and offered at reasonable prices.
• The dessert specialties sold through the Goldenberry Bubble Tea Bar are imported and not found in most businesses within the U.S. and, as such, constitute another unique offering of this business.
• The friendly and helpful staff members at the Goldenberry Bubble Tea Bar bring a warm environment to the business, as they help customers make informed choices of exciting and unique beverages.
• The partners bring vast experience, individual strengths and a successful capital raising background into the business.

Marketing Plan

Brand & value proposition.

Goldenberry Bubble Tea Bar will offer the unique value proposition to its clientele:

• As one of very few providers of bubble tea in Omaha, Nebraska, the Goldenberry Bubble Tea Bar is in the enviable position of offering a unique value proposition by introducing the tea with tapioca bubble (or boba) balls in several flavors to the geographic area.
• The partners of this business bring vast relevant experience in capital raising, key areas of management, business development, recipe creation, restaurant experience and import/export channel contracting.
• The business includes an area for customers to sit and relax after making a purchase at the counter, which encourages conversation and community interaction.
• Pricing for all beverages and desserts is moderate and reasonable; there are no beverages over the five-dollar price point.

Promotions Strategy

The promotions strategy for the Goldenberry Bubble Tea Bar is as follows:

Social Media Campaign

With the primary demographic target of younger adults and teens during the first phases of the business, the promotion will focus on posts on Twitter, Facebook and Instagram. Product images, photos and graphics will announce the launch of the business. The use of engaging or humorous video reels will also be employed to bring the bubble tea to the attention of potential clientele. A social media marketing manager will provide part-time services for three months.

Website – SEO Marketing

A website developer and designer will construct the website, which will be attractive to all target audience sectors and will conform to the brand identity and messaging across all platforms. Working with the social media marketing manager, SEO marketing will be utilized to bring messages of the launch, announce the purpose of the business, and reveal plans of the Goldenberry Bubble Tea Bar. Images and graphics directed to the demographic target audiences will be included. Menu items and product descriptions will be included. Launch Day discounts will be offered.

Print Advertising

In a ten-mile radius around the business location, flyers designed to fit the same configurations and the website and social media campaign will be distributed to homes, places of business and community centers with announcements and discounts for purchases. This will position the launch as an event with a purpose to the general public and cater to the residents who will optimally become regular repeat customers.

As a new beverage product line, previously unknown to most consumers, introductory pricing will be reasonable and moderate, on par with the direct competitors within the region. Goldenberry Bubble Tea Bar has two direct competitors; to overcome their offers and entice first-time buyers, the introductory pricing for beverages will be discounted for the first month of business in operation.

Operations Plan

The following will be the operations plan for the Goldenberry Bubble Tea Bar. Operation Functions:

• Chu Lin and Dave Zhu will share the legal partnership of the company with 51/49 percent ownership shares. They will conduct day-to-day operations, oversee all staff and manage vendors, product suppliers.
• Chu Lin and Dave Zhu will seek investor funding to open two additional locations; offering advantageous returns for early investors.
• Chu Lin will develop new recipes and continue expanding the product line of offerings.
• Dave Zhu will oversee imports, product supply and will lead capital-raising efforts.
• Kayla Blackburn, in the role of office manager, will oversee day-to-day operations.

Additional staff include:

• Mia Lorenz – Human resources coordinator who will onboard and train employees.
• Kevin Glick – Maintenance supervisor who will oversee cleaning and upkeep of facilities and grounds.

Milestones:

Goldenberry Bubble Tea Bar will have the following milestones complete in the next four months:

• 4/1/XX – Finalize contract for lease and equip for business
• 4/15/XX – Finalize personnel and staff employment contracts for the Goldenberry Bubble Tea Bar
• 5/1/XX – Marketing campaigns on social media begin; website development begins
• 5/10/XX – Final beverage testing and employee training
• 5/15/XX – Launch of business; location opened

The Goldenberry Bubble Tea Bar will be owned and operated by Chu Lin and Dave Zhu, in a legal partnership.

The company is founded by two friends, Chu Lin and Dave Zhu. Together they have over thirty years of experience in the food and beverage industries, from creating recipes and serving customers, to importing and exporting produce and desserts. They are highly skilled in restaurant management, creation of menu items, service to customers and are known for their integrity and leadership skills. They own three restaurants together in Taipei and they own two restaurants together in Omaha. With their extensive network of clients and connections, Chu Lin and Dave Zhu have decided to bring the famous bubble tea of Taiwan to Omaha, Nebraska.

Additional key employees include:

• Kayla Blackburn – in the role of office manager, who will oversee day-to-day operations.
• Mia Lorenz – the human resources coordinator, who will onboard and train employees
• Kevin Glick – the maintenance supervisor of cleaning and upkeep of facilities

Financial Plan

Key revenue & costs.

The revenue drivers for the Goldenberry Bubble Tea Bar are the monies that will be charged to the customers of the food offerings sold in the tea bar, including all beverages and dessert specialities. Competitors, either direct or indirect, may charge up to twenty-five percent more for offerings while the Goldenberry Bubble Tea Bar will charge a reasonable, moderate price below that of any competitor.

The cost drivers will be the overhead costs required in order to staff the tea bar and pay for inventory food items. The expenses will be the payroll cost, lease payments, utilities, office supplies, and marketing costs.

Funding Requirements and Use of Funds

The Goldenberry Bubble Tea Bar is seeking $200,000 in debt financing to launch its bubble tea bar business. The funding will be dedicated toward securing the location and purchasing the furnishings, equipment and food inventory to conduct business. Funding will also be dedicated toward three months of overhead costs to include: payroll of the staff, lease payments, food inventory, and marketing costs for the campaigns. The breakdown of funding is as follows:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan:

• Number of customers served per month: 1,200
• Revenue per average sale: $14
• Revenue per month: $16,800.
• Lease per Year: $42,000

Financial Projections

Income statement.

Balance Sheet

Cash Flow Statement

Bubble Tea Bar Business Plan FAQs

What is a bubble tea business plan.

A bubble tea business plan is a plan to start and/or grow your bubble tea business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Bubble Tea business plan using our Bubble Tea Business Plan Template here .

What are the Main Types of Bubble Tea Businesses?

There are a number of different kinds of bubble tea businesses , some examples include: Mobile Bubble Tea Business, Bubble TeaHouse, and Bubble Tea Bar.

How Do You Get Funding for Your Bubble Tea Business Plan?

Bubble Tea businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start a Bubble Tea Business?

Starting a bubble tea business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Bubble Tea Business Plan - The first step in starting a business is to create a detailed bubble tea business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your bubble tea business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your bubble tea business is in compliance with local laws.

3. Register Your Bubble Tea Business - Once you have chosen a legal structure, the next step is to register your bubble tea business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your bubble tea business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Bubble Tea Equipment & Supplies - In order to start your bubble tea business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your bubble tea business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.

Bubble Tea Business Plan Template

Written by Dave Lavinsky

Bubble Tea Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their bubble tea companies. 

If you’re unfamiliar with creating a bubble tea business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a bubble tea business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is a Bubble Tea Business Plan?

A business plan provides a snapshot of your bubble tea business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Bubble Tea Business

If you’re looking to start a bubble tea business or grow your existing bubble tea company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your bubble tea business to improve your chances of success. Your bubble tea business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Bubble Tea Businesses

With regards to funding, the main sources of funding for a bubble tea business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan (hand it to them in person or email to them as a PDF file) and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for bubble tea companies.

Finish Your Business Plan Today!

How to write a business plan for a bubble tea business.

If you want to start a bubble tea business or expand your current one, you need a business plan. The guide and sample below details the necessary information for how to write each essential component of your bubble tea business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of bubble tea business you are running and the status. For example, are you a startup, do you have a bubble tea business that you would like to grow, or are you operating a chain of bubble tea businesses?

Next, provide an overview of each of the subsequent sections of your plan. 

• Give a brief overv iew of the bubble tea industry. 
• Discuss the type of bubble tea business you are operating. 
• Detail your direct competitors. Give an overview of your target customers. 
• Provide a snapshot of your marketing strategy. Identify the key members of your team. 
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of bubble tea business you are operating.

For example, you m ight specialize in one of the following types of bubble tea businesses:

• Mobile Bubble Tea Business : A mobile bubble tea business can get ready for customers and sell products anywhere, making this one of the most profitable bubble tea business ventures. 
• Bubble TeaHouse: In this type of business, customers can lounge in comfort as they enjoy drinking bubble tea. The environment of a teahouse is relaxed, serene and inviting.
• Bubble Tea Bar: A bubble tea mobile bar or cart is the perfect way to start this business by moving among beachgoers, county fair attendees, guests in a park, or anyone on the street. 

In addition to explaining the type of bubble tea business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, the number of months with positive cash flow, reaching X number of beaches with mobile bubble tea service, etc.
• What is your legal business structure? Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the bubble tea industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the bubble tea industry educates you. It helps you understand the market in which you are operating. 

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your bubble tea business plan:

• How big is the bubble tea industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your bubble tea business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your bubble tea business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals and families or friends. 

As you can imagine, the customer segment(s) you choose will have a great impact on the type of bubble tea business you operate. Individuals may respond to different marketing promotions than a group of friends,, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers. Ideally you can speak with a sample of your target customers before writing your plan to better understand their needs.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are othe r bubble tea businesses. 

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes coffee houses, tea shops, or other beverage services. You need to mention direct competition, as well.

For each direct competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of bubble tea business are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide snacks or desserts with your bubble tea?
• Will you offer bubble tea with the highest-quality tapioca that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a bubble tea business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type o f bubble tea company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide membership cards for frequent bubble tea buyers, desserts with bubble tea selections, or other types of infused teas? 

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of yo ur plan, yo u are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your bubble tea company. Document where your company is situated and mention how the site will impact your success. For example, is your bubble tea business located in a busy retail district, a business district, or a standalone tea house? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your bubble tea marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites 
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your bubble tea business, including answering calls, testing and sampling new bubble tea recipes, paying vendors, and maintaining your shop or mobile tea service. 

Long-term goals are the milestones you hope to achieve. These could include the number of customers you plan to serve within 6 months,, or when you hope to reach $X in revenue. It could also be when you expect to expand your bubble tea business to a new city.

Management Team

To demonstrate your bubble tea business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company. 

Ideally, you and/or your team members have direct experience in managing bubble tea businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a bubble tea business or successfully running a small medical practice.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance s heet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you serve 30 guests every day, and/or offer family discounts ? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your bubble tea business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. 

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a bubble tea business:

• Cost of equipment and office supplies
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and tea-making equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your 5-year business lease or a list of unique tea infusions you’ve created for the market.

Writing a business plan for your bubble tea business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the bubble tea industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful bubble tea business.

Don’t you wish there was a faster, easier way to finish your Bubble Tea business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.  

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Bubble Tea Business Plan Template & PDF Example

• September 4, 2024
• Business Plan

Creating a comprehensive business plan is crucial for launching and running a successful bubble tea business. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your bubble tea business’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a bubble tea business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the food and beverages industry, this guide, complete with a business plan example, lays the groundwork for turning your bubble tea business concept into reality. Let’s dive in!

Our bubble tea business plan is crafted to address all vital components necessary for a detailed strategy. It highlights the business’s operational procedures, marketing tactics, market landscape, competition, management structure, and financial outlook.

• Executive Summary : This section gives a snapshot of the Bubble Tea business, encapsulating the concept, market potential, management structure, and financial outlook.
• Bubble Tea Shop & Location: The design, features, and strategic location of the Bubble Tea shop, designed to attract the target clientele.
• Supply & Operations:   A comprehensive list of bubble tea varieties, including flavors, toppings, and pricing, reflecting the shop’s value proposition.
• Key Stats: Vital statistics on the bubble tea industry, underlining the business opportunity.
• Key Trends: Trends shaping the bubble tea market, aligning with the business’s offerings.
• Key Competitors:  Examination of nearby bubble tea competitors, highlighting this shop’s differentiators.
• SWOT: A SWOT analysis to identify internal and external factors affecting the business.
• Marketing Plan : Marketing tactics designed to build brand visibility and customer loyalty.
• Timeline : Key objectives and timelines for the business’s first year, charting the path to success.
• Management: Details on the management team, their roles, and how their expertise benefits the business.
• Financial Plan: A projection of the Bubble Tea Shop’s financial performance over five years, covering revenues, profits, and major expenses.

Bubble Tea Business Plan

Fully editable 30+ slides Powerpoint presentation business plan template.

Download an expert-built 30+ slides Powerpoint business plan template

Executive Summary

The Executive Summary introduces your bubble tea shop’s business plan, offering a concise overview of your shop and its offerings. It should detail your market positioning, the variety of bubble tea flavors and related products you offer, its location, size, and an outline of day-to-day operations. 

This section should also explore how your bubble tea shop will integrate into the local market, including the number of direct competitors within the area, identifying who they are, along with your shop’s unique selling points that differentiate it from these competitors.

Furthermore, you should include information about the management and co-founding team, detailing their roles and contributions to the shop’s success. Additionally, a summary of your financial projections, including revenue and profits over the next five years, should be presented here to provide a clear picture of your shop’s financial plan.

Bubble Tea Business Plan Executive Summary Example

Business Overview

When constructing the executive summary for your bubble tea business, it’s imperative to present concise yet comprehensive details about your establishment. This encompasses your shop’s name, its strategic location, and a brief on daily operations.

These insights not only serve to introduce your business but also highlight its distinctive attributes. The  Unique Selling Proposition  ( USP ) is pivotal, setting your bubble tea shop apart from the competition. This could be your emphasis on authentic recipes, the introduction of eco-friendly practices, or innovative beverage creations. Your USP is the essence of your executive summary, captivating your  target audience  and underscoring the exclusive value your shop brings to the table.

Example: “Blissful Bubbles,” situated in the lively Arts District of Metro City, occupies a cozy 800 sq. ft. corner on Vine Street. Opening its doors from 10 AM to 10 PM, it offers an eclectic mix of bubble tea varieties, from traditional milk teas to exotic fruit infusions. Its USP lies in the commitment to sustainability, using only biodegradable materials and ethically sourced ingredients, appealing to environmentally conscious consumers.

Market Overview

A solid understanding and articulation of the market dynamics are essential for the  market analysis  section. It should underscore the burgeoning potential of the U.S. bubble tea industry, supported by relevant statistics such as market valuation and growth forecasts. Discussing  market trends  like the shift towards health-conscious offerings or the integration of cultural authenticity provides a glimpse into the evolving industry landscape and your shop’s place within it.

The  competitive landscape  is equally crucial. In your executive summary, identify major competitors and delineate how your bubble tea shop is uniquely positioned. Whether through unparalleled taste experiences, superior customer service, or innovative loyalty programs, this section is your chance to highlight how your shop will shine in a  competitive  setting.

Example: Amidst the flourishing U.S. bubble tea scene, valued at $1.0 billion with an 8.6% growth rate from 2023 to 2030, “Blissful Bubbles” emerges as a sanctuary for bubble tea aficionados in Metro City. Competing against five local establishments, it sets itself apart with its dedication to environmental sustainability and a diverse menu that caters to both traditionalists and adventurous palates.

Management Team

The collective expertise and background of your management team are invaluable to your business. Highlight the significant qualifications and experiences of your team members in this part of the executive summary.

This might include the entrepreneurial spirit of your CEO or the culinary creativity of your beverage director. Showcasing the team’s depth of knowledge not only strengthens credibility but also assures potential investors and partners of your bubble tea shop’s potential for success.

Example: “Blissful Bubbles” is led by dynamic duo, Jordan Kim and Taylor Cruz. Jordan, a seasoned entrepreneur with a passion for sustainable businesses, oversees the strategic direction, while Taylor, with their innovative culinary background, curates the shop’s unique beverage menu, together driving the vision of a modern yet conscientious bubble tea experience.

Financial Plan

The financial overview should succinctly encapsulate your financial ambitions and projections, including revenue goals and profitability margins, offering a lucid perspective on your shop’s financial future.

Example: Targeting $760,000 in annual revenue by 2028 with a 13% profit margin ( EBITDA ), “Blissful Bubbles” is poised for robust growth. The financial roadmap is centered on strategic investments in sustainable practices and a compelling menu, supported by targeted marketing and community engagement, setting the stage for lasting profitability and recognition in Metro City’s vibrant culinary scene.

For a Bubble Tea Shop, the Business Overview section can be effectively divided into 2 main parts:

Bubble Tea Shop & Location

Briefly describe the shop’s physical environment, emphasizing its design, ambiance, and the welcoming atmosphere it offers to customers. Mention the shop’s location, highlighting its accessibility and the convenience it offers to customers, such as proximity to educational institutions, shopping centers, or ease of parking. Explain why this location is advantageous in attracting your target clientele, focusing on high foot traffic areas or regions lacking in bubble tea options.

Supply & Operations

Detail the range of bubble tea options and related products offered, from classic flavors to innovative and seasonal specials. Discuss your supply chain strategy, ensuring it supports the consistent quality of ingredients, like premium teas and organic fruits. Outline your pricing strategy , making sure it reflects the quality of products provided and aligns with the market you’re targeting. Highlight any special offers, loyalty programs, or sustainable initiatives that provide added value to your customers, encouraging repeat business and community engagement.

Industry Size & Growth

In the Market Overview of your bubble tea shop business plan, start by examining the size of the bubble tea industry and its growth potential. This analysis is crucial for understanding the market’s scope and identifying expansion opportunities. Highlight how the global appreciation for bubble tea has led to a vibrant and growing market, with a diverse customer base eager for new and innovative beverage experiences.

Key Market Trends

Proceed to discuss recent market trends , such as the increasing consumer interest in healthier beverage options, exotic flavors, and customizable drinks. For example, highlight the demand for bubble tea varieties that cater to dietary restrictions (like vegan or sugar-free options) and the introduction of organic and locally sourced ingredients. Also, note the rising popularity of themed bubble tea shops that enhance the customer experience beyond just beverage consumption.

Competitive Landscape

A  competitive analysis  is not just a tool for gauging the position of your bubble tea business in the market and its key competitors; it’s also a fundamental component of your business plan.

This analysis helps in identifying your bubble tea business’s unique selling points, essential for differentiating your business in a  competitive  market.

In addition, the competitive analysis is integral to laying a solid foundation for your business plan. By examining various operational aspects of your competitors, you gain valuable information that ensures your business plan is robust, informed, and tailored to succeed in the current market environment.

Identifying Your Competitors in the Bubble Tea Industry

The first step to understanding your market position is to identify who your competitors are. Start by mapping out local bubble tea shops and cafes that offer bubble tea as part of their menu. For example, if your specialty is authentic Taiwanese bubble tea, your direct competitors would include nearby shops that focus on traditional bubble tea recipes, as well as larger chain cafes that offer bubble tea among other beverages. It’s also important to consider indirect competitors, such as coffee shops or dessert bars that might offer a limited selection of bubble tea flavors.

Utilize online tools like Google Maps to understand the geographical spread of your competitors. Platforms like Yelp and TripAdvisor can provide customer reviews and ratings, offering insights into what customers appreciate or dislike about these competitors. For instance, if multiple reviews praise the innovative flavors and quick service at “Bubble Bliss,” these are competitive  strengths  to take note of.

Bubble Tea Competitors’ Strategies

To analyze your competitors’ strategies effectively, consider the following aspects:

• Bubble Tea Menu:  Look into the variety of bubble tea options they offer. If “Tropical Teas” is becoming popular for its wide range of fruit-infused teas, it might indicate a trend toward fruity bubble tea flavors.
• Brewing Techniques:  Assess their tea brewing methods. A shop like “Authentic Brews” that emphasizes traditional brewing methods might cater to purists, whereas “Modern Mixes” might attract a younger crowd with its creative and contemporary blends.
• Pricing:  Evaluate how your prices compare with those of your competitors. Are your bubble teas priced competitively with those at “Value Teas,” or are they positioned as premium offerings like those at “Luxury Bubbles”?
• Marketing Efforts:  Observe how competitors market their products. Do they engage heavily with customers on social media, or do they focus on local events and word-of-mouth?
• Customer Experience:  Look at the ambiance and service quality. A shop like “Cozy Bubble Corner” may be known for its warm and inviting space, adding value to the customer experience.
• Operational Innovations:  Notice if competitors are leveraging technology or new processes to enhance efficiency, like “Quick Sips” with its mobile ordering app.

What’s Your Bubble Tea Business Value Proposition?

Reflect on what unique value your bubble tea business brings to the table. Perhaps it’s your exclusive matcha bubble tea blend or your commitment to organic, sustainably sourced tea leaves.

Explore market opportunities by listening to customer feedback and keeping an eye on industry trends. For instance, the increasing interest in healthy, low-sugar bubble tea options could be a niche if your competitors haven’t yet tapped into this demand.

Your location plays a role too: A downtown bubble tea shop might focus on catering to the lunchtime office crowd with fast service and loyalty programs, while a suburban location might thrive by creating a community hub for local gatherings and events.

First, conduct a SWOT analysis for the bubble tea shop, highlighting Strengths (such as a diverse menu with unique and authentic flavors, and a strong focus on customer experience), Weaknesses (including potential high initial setup costs or the challenge of maintaining quality with seasonal ingredients), Opportunities (for instance, the growing demand for innovative and healthier drink options, and the ability to expand into catering or online ordering), and Threats (such as fluctuations in the prices of key ingredients or the increasing number of competitors in the market).

Marketing Plan

Next, develop a marketing strategy that outlines how to attract and retain customers through engaging and visually appealing online content, promotional offers for new flavors or loyalty rewards, active participation in local events and festivals, and partnerships with local businesses or schools. Emphasize the importance of building a brand that resonates with your target market , utilizing platforms where your audience is most active, like Instagram or TikTok, to showcase your products and shop atmosphere.

Marketing Channels

Utilize various channels to reach and engage with potential and existing customers.

Digital Marketing

Establish a robust online presence:

• Social Media:  Utilize platforms like Instagram, Facebook, and TikTok to showcase your bubble tea varieties, behind-the-scenes processes, customer testimonials, and interactive content.
• Email Marketing:  Build an email subscriber list by offering promotions. Send newsletters with updates on new flavors, special offers, and upcoming events at your tea house.
• Website and SEO:  Create a user-friendly website with a menu, customer reviews, and a blog featuring tea-related content. Optimize your site for local SEO to enhance visibility in searches for bubble tea in your area.

Local Advertising

Connect with the local community:

• Distribute Flyers:  Design and distribute flyers in local community hubs, college campuses, and cafes to increase brand visibility.
• Community Engagement:  Participate in local events, and sponsorships, or collaborate with nearby businesses to expand your reach and foster community relationships.

Promotional Activities

Engage potential customers through enticing offers:

• Special Deals:  Plan and execute various promotional campaigns, such as ‘Buy One, Get One Free’ offers or introducing seasonal flavors and limited-time discounts. Leverage these promotions to attract new customers and retain existing ones by continuously offering unique and exciting deals.
• Loyalty Programs:  Implement a comprehensive loyalty program that rewards frequent buyers with points redeemable for free drinks, discounts, or exclusive benefits. Regularly communicate the value of the program and create tiers or  milestones  to encourage increased customer engagement and retention.
• Referral Incentives:  Encourage customers to refer friends and family to your bubble tea shop by offering incentives, such as referral discounts or freebies. Leverage word-of-mouth marketing by creating a referral program that benefits both the existing customer and the referred individual.

Sales Channels

Maximize revenue streams and enhance customer satisfaction through effective sales strategies .

In-Store Upselling

Enhance sales during customer visits:

• Upselling Options:  Train staff to suggest add-ons like flavored toppings or snacks that complement the bubble tea orders.
• Merchandising:  Display tea-related merchandise or specialty items for purchase near the checkout counter to encourage impulse buying.

Online Sales and Booking

Leverage technology for seamless transactions:

• Online Ordering:  Offer online ordering and payment options through your website or mobile app to cater to customers seeking convenience.
• E-Commerce:  Sell branded merchandise, DIY bubble tea kits, or curated tea sets through your website to expand revenue streams.
• Virtual Consultations:  Provide online consultations for customized drink recommendations or special event planning, leading to increased sales and customer satisfaction.

Membership and Loyalty Programs

Foster customer loyalty and repeat business:

• Membership Options:  Introduce a tiered membership program offering exclusive benefits, such as early access to new flavors, bulk purchase discounts, or VIP event invitations. Provide value to members by continuously enhancing the program with new perks and incentives.
• Loyalty Rewards:  Develop a digital loyalty program where customers earn points for every purchase, leading to rewards or special privileges. Utilize customer data gathered through loyalty programs to personalize marketing efforts, thereby increasing customer retention and lifetime value.

Strategy Timeline

Finally, create a detailed timeline that outlines critical milestones for the bubble tea shop’s opening, such as finalizing the location, securing suppliers, completing the interior setup, and launching a soft opening. Include key marketing campaigns to build anticipation before the opening and after, tracking customer growth, feedback implementation, and potential expansion or menu diversification objectives, ensuring the business progresses with clear direction and purpose.

The Management section focuses on the bubble tea business’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the bubble tea business toward its financial and operational goals.

For your bubble tea business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your bubble tea business’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your bubble tea business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

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Bubble Tea Business

Back to All Business Ideas

How to Start Your Own Bubble Tea Business

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on March 31, 2022

Investment range

$21,550 - $45,100

Revenue potential

$220,000 - $1,100,000 p.a.

Time to build

1 – 3 months

Profit potential

$44,000 - $220,000 p.a.

Industry trend

Here are the most important things to consider when starting a bubble tea business:

• Location — Choose a location that’s in a high foot traffic area such as busy streets, shopping malls, and areas near schools or universities. Make sure you are near your target demographic like younger people, especially students.
• Find a franchise — There are a couple of franchises you can choose from: Kung Fu Tea , Gong Cha , or Chatime .  
• Licenses and permits — Since a bubble tea shop involves food and beverage preparation, you’ll need a permit from the local health department, which will also require an inspection of your premises to ensure it meets health and safety standards.
• Equipment — You will need bubble tea equipment , such as shakers, tea brewers, sealing machines, refrigerators, and blenders.
• Register your business — A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple. Form your business immediately using ZenBusiness LLC formation service or hire one of the best LLC services on the market.
• Legal business aspects — Register for taxes, open a business bank account, and get an EIN .
• Come up with a menu — Come up with a unique menu with core offers, toppings and extras, seasonal or trendy drinks, and even non-tea options to diversify your income.
• Online presence and orders — Take your bubble tea business online and offer deliveries, or partner with other food shops or online food service providers so they also have your products on the menu.

Interactive Checklist at your fingertips—begin your bubble tea business today!

You May Also Wonder:

Can a bubble tea business be profitable?

Yes, a bubble tea business can be profitable. The key is to create interesting and unique flavors that will keep customers coming back.

What is the most popular flavor of bubble tea?

Milk tea is generally the most popular. Other popular flavors include green tea and oolong tea.

What is the healthiest bubble tea?

Green and black teas are full of antioxidants. You have to be careful about what you put in because adding unhealthy ingredients can take away from the health benefits.

What is the most successful bubble tea company?

Kung Fu Tea is the largest bubble tea brand in the United States. They have more than 350 locations across the country.

Can you start bubble tea business on the side?

A bubble tea business is really a full-time commitment. If you only have limited hours, you’re limiting your revenue. 

Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting a bubble tea business has pros and cons to consider before deciding if it’s right for you. 

• Trending market — Demand for bubble tea is growing rapidly
• Ingenuity — Create your own unique flavors
• Easy entry — You might buy a Kung Fu Tea or Gong Cha Tea franchise to get started
• High startup costs — Opening a bubble tea shop costs $$$
• Crowded market — Bubble tea shops are popping up everywhere

Bubble Tea Industry Trends

Industry size and growth.

• Industry size and past growth — The global bubble tea market was worth $3 billion in 2022.
• Growth forecast — The global bubble tea market is projected to expand by 6.3% annually by 2032, reaching $5.4 billion.(( https://www.alliedmarketresearch.com/bubble-tea-market ))

Trends and Challenges

• Increased health consciousness is driving demand for bubble tea, as it is thought to have many health benefits.
• Bubble tea is extremely popular with millennials and Gen Zers. A 2021 survey showed that 94% of those aged 20–29 had purchased it in the past month.(( https://foodinstitute.com/focus/survey-millennials-gen-z-big-fans-of-bubble-tea/ ))
• The growing prevalence of bubble tea shops is making the market very competitive.
• Rising prices for ingredients are cutting into the profit margins of bubble tea businesses.

How Much Does It Cost to Start a Bubble Tea Business?

Startup costs for a bubble tea business range from $21,000 to $45,000. Costs include a shop space rental deposit, space preparation, equipment, and ingredients. 

You’ll need a handful of items to successfully launch your bubble tea business, including: 

• Bubble tea machines
• Automatic tea brewers
• Automatic tapioca pearl makers
• Automatic tapioca pearl cookers
• Refrigerator
• Sealing film

How Much Can You Earn From a Bubble Tea Business?

The average price for bubble tea is $6. Your profit margin after rent, overhead, labor, and ingredients will be about 20%.

In your first year or two, you could sell 100 bubble teas per day, bringing in $220,000 in annual revenue. This would mean $44,000 in profit, assuming that 20% margin. As your brand gains recognition and your shop grows in popularity, sales could climb to 500 teas per day. With an annual revenue of $1,100,000, you’d make a tidy profit of $220,000.

What Barriers to Entry Are There?

There are a few barriers to entry for a bubble tea business. Your biggest challenges will be:

• The startup costs of opening a shop
• Coming up with unique flavors that draw customers

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Step 2: hone your idea.

Now that you know what’s involved in starting a bubble tea business, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an Opportunity

Research bubble tea businesses in your area to examine their products, price points, and what sells best. You’re looking for a market gap to fill. For instance, maybe the local market is missing a bubble tea shop that uses popping boba or a bubble tea shop that also offers snacks.

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as green tea-based bubble tea or dessert-flavored boba tea.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine Your Menu and Bubble Tea Flavors

When creating your menu for bubble tea flavors, consider including a variety of options such as classic milk tea, fruit-flavored teas, and unique combinations like matcha or taro.

Additionally, incorporating a selection of snacks or light meals like dumplings, spring rolls, or sandwiches can provide a more comprehensive experience for your customers.

How Much Should You Charge for Bubble Tea?

The average price of a bubble tea is $6. Your ongoing expenses will be for rent, overhead, labor, and ingredients. You should aim for a profit margin of about 20%.

Once you know your costs, you can use our profit margin calculator to determine your markup and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify Your Target Market

Your target market will be broad but tend toward a younger demographic. You should market on sites like TikTok and Instagram. 

Where? Choose Your Bubble Tea Location

Selecting the right location for your bubble tea business is essential for its success. Look for a spot in a high-traffic area with a strong youth culture, such as a college campus, a trendy shopping district, or a bustling downtown area.

Consider accessibility and convenience, ensuring that the location has ample foot traffic and is easily reachable by public transportation. By strategically choosing the right location, you can establish a profitable and popular bubble tea business that caters to a wide range of customers and sets you apart from the competition.

You’ll need to rent out a shop space. You can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

Step 3: Brainstorm a Bubble Tea Business Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “bubble tea” or “boba tea,” boosts SEO
• Name should allow for expansion, for example, “The Bubble Tea Company” over “Matcha Bubble Tea”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Discover over 240 unique bubble tea business name ideas here . If you want your business name to include specific keywords, you can also use our bubble tea business name generator. Just type in a few keywords, hit Generate, and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Bubble Tea Business Plan

Here are the key components of a business plan:

• Executive summary — A brief summary outlining the core elements of the bubble tea business plan, including its mission, goals, and key highlights
• Business overview — An overview of the bubble tea business, detailing its mission, vision, target market, and the unique value it brings to customers
• Product and services — A concise description of the bubble tea products and services offered, highlighting key features and potential variations
• Market analysis — An examination of the bubble tea market, including target demographics, trends, and potential growth opportunities
• Competitive analysis — An evaluation of competitors in the bubble tea industry, outlining strengths, weaknesses, opportunities, and threats to the business
• Sales and marketing — Strategies for promoting and selling bubble tea, encompassing marketing channels, pricing, and sales tactics
• Management team — Introductions and brief bios of the key individuals responsible for managing and operating the bubble tea business
• Operations plan — Detailed information on the day-to-day operations of the bubble tea business, covering suppliers, equipment, location, and logistics
• Financial plan — A comprehensive financial projection for the bubble tea business, including startup costs, revenue forecasts, and profit margins
• Appendix — Additional supporting documents, data, or information that provides further context or details to enhance the overall business plan

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running. 

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose Where to Register Your Company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to bubble tea businesses. 

If you’re willing to move, you could really maximize your business! Keep in mind that it’s relatively easy to transfer your business to another state. 

Choose Your Business Structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your bubble tea business will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole proprietorship — The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General partnership — Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) — Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corporation — Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corporation — This refers to the tax classification of the business but is not a business entity. Either a corporation or an LLC can elect to be an S Corp for tax status. Here, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2024

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number or EIN. You can file for your EIN online or by mail/fax. Visit the IRS website to learn more. Keep in mind that, if you’ve chosen to be a sole proprietorship, you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund Your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans — This is the most common method but getting approved requires a rock-solid business plan and a strong credit history.
• SBA-guaranteed loans — The Small Business Administration can act as a guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants — A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and family — Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding — Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal — Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a bubble tea business. You might also try crowdfunding if you have an innovative concept. 

Step 8: Apply for Bubble Tea Business Licenses and Permits

Starting a bubble tea business requires obtaining a number of licenses and permits from local, state, and federal governments.

Depending on the requirements in your area, you may need:

• Food service license
• Food handler’s permit
• Building health permit

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your bubble tea business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability — The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business property — Provides coverage for your equipment and supplies.
• Equipment breakdown insurance — Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation — Provides compensation to employees injured on the job.
• Property — Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto — Protection for your company-owned vehicle.
• Professional liability — Protects against claims from clients who say they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP) — This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential Software and Tools

Being an entrepreneur often means wearing many hats — from marketing to sales to accounting — which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You may want to use industry-specific software, such as Restaurant 365 , lightspeed , and toast , to manage your menu, inventory, scheduling, and payments.

• Popular web-based accounting programs for smaller businesses include Quickbooks , FreshBooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences of filing incorrect tax documents can be harsh, so accuracy is crucial. 

Develop Your Website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using website builders . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech savvy, you can hire a web designer or developer to create a custom website for your business.

However, people are unlikely to find your website unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Here are some powerful marketing strategies for your future business:

• Vibrant social media showcases — Leverage Instagram, Facebook, and TikTok to highlight the unique visual appeal of your bubble tea with engaging images and videos.
• Localized SEO strategies — Optimize your online presence to ensure your bubble tea shop appears prominently in local search results. Regularly update your Google My Business and Yelp profiles to strengthen your local search presence.
• Engaging online menus — Feature an interactive, visually appealing menu on your website, detailing each bubble tea flavor with enticing photos.
• Eye-catching branding — Develop a distinctive visual brand identity that resonates across all elements, from store design to packaging.
• Introductory offers — Attract new customers with compelling opening deals such as buy-one-get-one-free or first-time visitor discounts.
• Targeted email campaigns — Cultivate a mailing list to inform customers about new products, promotions, and events.
• Content marketing — Produce engaging blog content exploring bubble tea’s origins, DIY tips, and the latest trends.
• Customer engagement — Promote customer reviews and spotlight favorite customer experiences and creations on social media.
• DIY bubble tea stations — Offer a customizable experience with stations for customers to create their own bubble tea blends.
• Local market participation — Showcase your bubble tea at local markets and festivals to expand reach and enhance community engagement.
• Customer loyalty programs — Implement a loyalty scheme that rewards frequent visitors with discounts or exclusive offers.
• Interactive social media campaigns — Engage customers with interactive content and competitions on social media to increase involvement and loyalty.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that set it apart from the competition. Today, customers are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your bubble tea business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your bubble tea business could be:

• Healthy, organic bubble teas in a variety of delicious flavors
• Tasty, thirst-quenching bubble tea delivered to your door
• Healthy boba tea specialists

You may not like to network or use personal connections for business gain but your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a bubble tea business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in bubble tea for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in bubble tea. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

You will likely need workers to fill various roles. Potential positions for a bubble tea business include:

• Shop clerks — taking orders, making bubble teas
• General manager — scheduling, ordering, accounting
• Marketing lead — SEO strategies, social media

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Bubble Tea Business — Start Making Money!

Ready to get in on the bubble tea craze? It’s a booming market, so now could be the perfect time to start your bubble tea business. Whether you start from scratch or purchase a bubble tea franchise, you’ll have to make an investment, but you can make good money and have fun! You could become the go-to bubble tea shop in your area. 

Now you have the business expertise, so go ahead and start brewing your way to bubble tea success!

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Bubble Tea Business Name
• Create a Bubble Tea Business Plan
• Register Your Business
• Register for Taxes
• Fund Your Business
• Apply for Bubble Tea Business Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Bubble Tea Business — Start Making Money!

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How to Write a Bubble Tea Business Plan

Congratulations! You have a new variety or flavor in bubble tea to offer the world. Well, before you start brewing & serving it up, here is a reality check- it takes a lot more than a delicious recipe to make it successful.

Careful planning and forecasts are necessary to evaluate the current positioning of your business. Yes! Here, we are talking about a bubble tea business plan. It will not only serve you as a roadmap but will also help you with funding.

The business plan is like a guidebook that supports the business at every step, from starting to growing. It makes sure that all decisions match the main goals. However, here is our bubble tea business plan guide with various examples to assist you through the business plan writing process. All the best!

Free Business Plan Template

Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write a Bubble Tea Business Plan?

Writing a bubble tea business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. Here are the things you have to mention in your summary in brief:

• Business introduction
• Mission statement
• Founding information
• Business concept
• Products and services

Target market

• Call to action

For example,

Note: Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business.

Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section. This section should provide a thorough understanding of your business, its history, and its plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.

For instance, students, professionals, families, social media enthusiasts, or some local communities can be the target market for the bubble tea business.

Market size and growth potential

Describe your market size and growth potential and whether you will target a niche or a much broader market.

For example, the bubble tea market in the U.S. reached $434.11 million in 2022 and is expected to increase from $464.29 million in 2023 to $750.59 million by 2030.

Competitive Analysis

Identify and analyze your direct and indirect competitors. Identify their strengths and weaknesses, and describe what differentiates your bubble tea business from them. Point out how you have a competitive edge in the market.

Market Trends

Bubble tea’s market is growing in popularity, so to make it successful, you need to work with the changes in the preferences of customers and the trends. So, some of the trends right now are:

• Health-conscious options
• Customization & Variety
• Innovative flavors & ingredients

Regulatory Environment

List regulations and licensing requirements that may affect your bubble tea business, such as food & safety regulations, health department regulations, licensing & permits, zoning regulations, tax regulations, etc.

Here are a few tips for writing the market analysis section of your bubble tea business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Sample Menu

One of the most crucial steps in launching your bubble tea business is designing the menu. A well-curated menu will sell itself for your business. Even if you are a new bubble tea business, still present the sample menu with the name and the logo of your business on it.

Not just the list of items, but the pricing is also crucial in the menu. This way potential investors and audiences can understand your business’s target price point.

Consider your menu as a part of branding, choose the same theme for the menu as for the bubble tea business’s logo or interior.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique Selling Proposition (USP)

Define your business’s USPs depending on the market you serve, the equipment you use, and the unique services you provide. Identifying USPs will help you plan your marketing strategies. For example,

Unique Selling Proposition (USP) of Sip & Bliss

Sip & Bliss Bubble Tea Haven sets itself apart by offering a unique and artistic bubble tea experience that transcends conventional standards. Our dedication to artisanal craftsmanship ensures that each beverage is a masterpiece, meticulously prepared by skilled artisans who blend premium ingredients with creative flair.

Our menu goes beyond the ordinary, featuring a fusion of classic favorites and locally inspired creations that reflect the vibrancy of Atlanta. What truly distinguishes us is our commitment to being more than a beverage provider; we are a community engagement hub.

Through themed events, collaborations with local artists, and active participation in community initiatives, we create a space where patrons can not only enjoy exceptional bubble tea but also connect, celebrate, and be part of a vibrant community. Sip & Bliss Bubble Tea Haven is where the art of bubble tea meets local culture, creating an immersive experience for our clientele.

Pricing Strategy

Describe your pricing strategy—how you plan to price your offerings and stay competitive in the local market. You can mention any discounts you plan on offering to attract new customers to your bubble tea business.

Marketing Strategies

Discuss your marketing strategies to market your services. You may include some of these marketing strategies in your business plan—social media marketing, brochures, email marketing, content marketing, and print marketing.

Sales Strategies

Outline the strategies you’ll implement to maximize your sales. Your sales strategies may include contests, partnering with other businesses, offering referral programs, etc.

Customer Retention

Describe your customer retention strategies and how you plan to execute them. For instance, introducing loyalty programs, discounts on membership, personalized service, etc.

Overall, this section of your bubble tea business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your bubble tea business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Operational Process

Outline the processes and procedures you will use to run your bubble tea business. Your operational processes may include ingredients procurement, beverage preparation, boba preparation, etc.

Include the list of equipment and machinery required for bubble tea, such as tea brewing equipment, blenders, sealing machine, cooking equipment, refrigerator & storage, etc.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your bubble tea business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founders/CEO

Mention the founders and CEO of your bubble tea business, and describe their roles and responsibilities in successfully running the business.

Key managers

Introduce your management and key members of your team, and explain their roles and responsibilities. Also, mention their experience and educational qualifications. For example,

Management team of Sip & Bliss

Chief Operating Officer – Michael Chen

As the COO of Sip & Bliss, Michael Chen plays a crucial role in the day-to-day operations. With a background in business management and a keen eye for efficiency, Michael ensures the smooth functioning of the bubble tea haven. His focus on optimizing processes and maintaining high standards aligns with Sip & Bliss’s commitment to excellence.

Creative Director – Jasmine Rodriguez

Jasmine Rodriguez serves as the Creative Director, infusing artistic flair into Sip & Bliss’s beverage offerings. With a background in culinary arts and a passion for flavor innovation, Jasmine curates the diverse menu, blending classic bubble tea favorites with locally inspired twists. Her creative touch elevates Sip & Bliss as a hub for flavor exploration.

Head Barista – Emily Wong

Emily Wong, the Head Barista, is the maestro behind Sip & Bliss’s handcrafted bubble teas. With extensive knowledge of tea blending and a commitment to quality, Emily ensures that every beverage is a delightful experience. Her expertise in creating visually appealing and flavorful drinks contributes to Sip & Bliss’s reputation for excellence.

Organizational structure

Explain the organizational structure of your management team. Include the reporting line and decision-making hierarchy.

Compensation Plan

Describe your compensation plan for the management and staff. Include their salaries, incentives, and other benefits.

In short, this section should describe the key personnel for your bubble tea business, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement

Describe details such as projected revenue, operational costs, and service costs in your projected profit and loss statement. Make sure to include your business’s expected net profit or loss.

Cash flow statement

The cash flow for the first few years of your operation should be estimated and described in this section. This may include billing invoices, payment receipts, loan payments, and any other cash flow statements.

Balance Sheet

Create a projected balance sheet documenting your bubble tea business’s assets, liabilities, and equity.

Break-even point

Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.

This exercise will help you understand how much revenue you need to generate to sustain or be profitable.

Financing Needs

Calculate costs associated with starting a bubble tea business, and estimate your financing needs and how much capital you need to raise to operate your business. Be specific about your short-term and long-term financing requirements, such as investment capital or loans.

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your bubble tea business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This sample bubble tea business plan will provide an idea for writing a successful bubble tea plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our bubble tea business plan pdf .

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Frequently Asked Questions

What is the easiest way to write your bubble tea business plan.

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any bubble tea business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

How do I write a good market analysis for a bubble tea business plan?

Market analysis is one of the key components of your business plan that requires deep research and a thorough understanding of your industry.

We can categorize the process of writing a good market analysis section into the following steps:

• Stating the objective of your market analysis—e.g., investor funding.
• Industry study—market size, growth potential, market trends, etc.
• Identifying target market—based on user behavior and demographics.
• Analyzing direct and indirect competitors.
• Calculating market share—understanding TAM, SAM, and SOM.
• Knowing regulations and restrictions
• Organizing data and writing the first draft.

Writing a marketing analysis section can be overwhelming, but using ChatGPT for market research can make things easier.

How detailed should the financial projections be in my bubble tea business plan?

The level of detail of the financial projections of your bubble tea business may vary considering various business aspects like direct and indirect competition, pricing, and operational efficiency. However, your financial projections must be comprehensive enough to demonstrate a complete view of your financial performance.

Generally, the statements included in a business plan offer financial projections for at least the first three or five years of business operations.

What key components should a bubble tea business plan include?

The following are the key components your bubble tea business plan must include:

• Executive summary
• Business Overview
• Market Analysis
• Sales and marketing strategies
• Operations plan
• Management team
• Financial plan

What's the importance of a marketing strategy in a bubble tea business plan?

Marketing strategy is a key component of your bubble tea business plan. Whether it is about achieving certain business goals or helping your investors understand your plan to maximize their return on investment—an impactful marketing strategy is the way to do it!

Here are a few pointers to help you understand the importance of having an impactful marketing strategy:

• It provides your business an edge over your competitors.
• It helps investors better understand your business and growth potential.
• It helps you develop products with the best profit potential.
• It helps you set accurate pricing for your products or services.

About the Author

Vinay Kevadiya

Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read more

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Bubble Tea Shop Business Plan Template

Published Mar.21, 2018

Updated Apr.19, 2024

By: Brandi Marcene

Average rating 4.3 / 5. Vote count: 19

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Table of Content

Do you want to start bubble tea shop business?

Starting a bubble tea shop business is very easy and extremely profitable as well. If you don’t know how to open a bubble tea shop, just go through this milk tea business plan template. It will guide you through everything which you need to know for starting this venture. The first thing you should do is to develop a comprehensive plan for your tea room business model . The business plan will not only help you in startup but it will also help you in taking important decisions for your company over the next years. In case you don’t know how to write a good milk tea business plan, we are providing a detailed milk tea business plan template of a bubble tea shop startup ‘Sam’s Stop’ to help you avoid the trouble of making a plan yourself.

Executive Summary

2.1 the business.

Sam’s Stop will be a licensed and ensured tea shop located in Downtown Manhattan. We will be strategically located in the most suitable place for opening a bubble tea shop business plan.

2.2 Management

The business will be solely owned and operated by Sam Kin who is a graduate from Harvard University and is known for his sharp business acumen and exceptional management skills. Sam will hire a small team comprising of chefs, waiters, assistants and cleaners for operating and managing the shop.

2.3 Customers

Our customers will primarily be the residential community living near our shop. We will offer high-quality and healthy tea latte, milk tea, fruit flavored tea, brown sugar milk, macchiato and slush to our esteemed customers.

2.4 Target of the Company

Our primary target is to become the best tea shop in the New York City within next 3 years of our launch. Our secondary target is to achieve the net profit margin of $10k/month by the end of the first year, $15k/month by the second year, and $25k/month by the third year.

Company Summary

3.1 company owner.

Sam is a business graduate of Harvard University. After completing his Bachelor’s, he worked with a couple of fast food restaurants at executive positions. He is known for his sharp business acumen and exceptional management skills.

3.2 Why the Business is being started

The main motive behind Sam starting a bubble tea business plan is his intense passion for tea room business model . Sam has exceptional business skills and this venture is just his first step into the business world. Within next three years he plans to open five more bubble tea spots in different cities, and after that, he will move towards business plans for restaurants . So, this venture is where Sam will enter the corporate sector.

3.3 How the Business will be started

Sams’s Stop will be launched in a 200-square-feet shop located in the main commercial market of Downtown Manhattan. The shop was previously used as a grocery store, so a lot of work needs to be done for turning it into a tea shop. The company’s financial experts have forecasted following costs for the start-up:

Services for customers

It is wiser to plan your services or menu before you think about how to start a milk tea business plan template. You can only plan subsequent things after you know what you will be providing to your customers. Sam’s Stop will offer following products to its customers:

• Milk Tea: Bubble Milk Tea, Brown Sugar Milk Tea, Almond Milk Tea, Hazelnut Milk Tea
• Tea Latte: Black Rose Latte, Oolong Latte Float, Matcha Latte, Tie Guan Yin Latte
• Fruit Flavored Tea: Peach Green Tea, Mango Green Tea, Honey Green Tea, Fresh Lemon Green Tea
• Brown Sugar Milk: Black & Yellow Milk, Black Babo Milk, Red & Yellow Milk
• Macchiato: Rose Tea Macchiato, Jasmine Green Tea Macchiato, Milk Tea Macchiato
• Slush/Milk Shake: Oreo Milk Shake, Mango Slush, Passion Fruit Slush, Ice Cream Shake

Marketing Analysis of bubble tea shop business

The most important component of an effective milk tea business plan is its accurate marketing analysis that’s why Sam acquired the services of marketing experts to help him through this phase. It is only after this stage that a good bubble tea business plan template could have been developed. After identifying the local market trends in Manhattan, the marketing experts and analysts also helped him in developing the bubble tea marketing plan.

5.1 Market Trends

As for a general trend, the market demand for bubble tea businesses is on the rise. Bubble tea is one of the most popular drinks with Americans. The biggest reason behind the popularity of this bubble tea shop business plan template is that people are becoming more health conscious day by day.

As a result, people have started avoiding carbonated drinks and have leaned towards healthy alternatives such as smoothies, slushes, milk and fresh fruit juices. That’s why the number of bubble tea shops has been increasing during the last few years. In short, this industry has a lot of potential and even a small bubble tea shop can yield immense profit provided that you successfully plan it and target your customers.

5.2 Marketing Segmentation

Our marketing experts have identified following type of target audience which can become the potential customers of our tea shop.

The detailed marketing segmentation comprising of the company’s target audience is as follows:

Operational and Strategic Planning

5.2.1 working community:.

The first category includes the workers and employees who work in the businesses or offices located in the vicinity of your milk tea business plan template. This group leads a strenuous life, burdened with plenty of work and thousands of matters to think upon. It has been observed that this group often takes soft drinks, especially coffee and bubble tea to take a break from their hectic routine. Our tea shop will be the perfect place for them to rest while on their way home.

5.2.2 Residential Community:

The second group of our target customers will be the community residing in the vicinity of our restaurant. Bubble tea is one of the favorite drinks of American teens so we hope to have a lot of sales due to them. Not only teens, adults and middle-aged people also love smoothies, slushes and fresh tea due to health benefits, that is why we classify this group as our second target group.

5.2.3 Passers-by:

The third category includes those people who do not live or work near our tea room business model but have come to the area for any business purpose or commercial activity. We also hope to attract these passers-by with our economical and delicious smoothies, milkshakes and tea.

5.3 Business Target

Our business targets are as follows:

• To become the best bubble tea shop in Manhattan within next 3 years of our launch
• To recover the initial investment within next 1 year of launch
• To open two more tea shops by the end of the second year and three more shops by the end of the third year

5.4 Product Pricing

After considering the market demands, we have priced all our products in the similar ranges as of our competitors. Our product pricing is as follows:

• Small Serving: $3/serve
• Regular Serving: $4/serve
• Large Serving: $5/serve

OGScapital was great working with.

OGScapital is the company I had recently worked with on business plan development. The assigned project manager was very diligent, hard-working, clearly understood set tasks. The project was done before set deadlines, which was even more pleasant for me. I definitely recommend OGScapital as a team of real professionals.

Sales strategy is also an important component of a bubble tea shop business plan template and hence it must be developed with great care and attention must be paid to every detail.

6.1 Competitive Analysis:

We have a really tough competition because bubble tea shops are nearly everywhere in Manhattan but none of our competitors is offering as much high quality and delicious drinks as ours. Our high-quality, healthy and economical drinks, combined with the unparalleled customer service of our staff will give us an advantage over other tea shops in the region.

6.2 Sales Strategy

We will target our customers by following three ways:

• Conducting seminars, webinars, and workshops in different institutions to emphasize the health benefits of bubble tea and other similar drinks.
• Advertising our tea shop in food magazines, newspapers, TV stations, and social media.
• Offering a 20% discount on all drinks for the first three months of our launch.

6.3 Sales Monthly:

6.4 Sales Yearly:

6.5 Sales Forecast

Our forecasted sales pattern is given in the following column chart:

Personnel plan

It is highly advisable to prepare a personnel plan before you think about how to start a milk tea business plan templated bubble tea shop since it is one of the biggest contributing factors of the success of any business. The personnel plan of Sam’s Stop is as follows:

7.1 Company Staff

Sam will act as the CEO of the company and will initially hire following people:

• 1 Manager to manage the overall operations
• 1 Cashier to receive cash from the people
• 2 Accountants to maintain financial records
• 4 Sales Executives responsible for marketing and advertising the tea shop
• 10 Chefs for preparing drinks
• 10 Waiters to serve the customers
• 8 Cleaners to clean dishes and other facilities at the tea shop

Financial Plan

The final thing to do before you think about how to open milk tea room business model is to develop a comprehensive financial plan which will cover the detailed costs of startup.

8.1 Important Assumptions

8.2 Brake-even Analysis

8.3 Projected Profit and Loss

8.3.1 profit monthly.

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

The following column diagram shows the projected cash flow.

Download Bubble Tea Shop Business Plan in pdf

OGScapital also specializes in writing business plans such as a business plan for a sandwich shop , business plan of coffee shop , business plan of a butchery business startup , donut shop business plan , business plan for a grocery store , restaurant business plan templates and etc.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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How to Start a Bubble Tea Business

In operating a bubble tea business, you’ll bring the Taiwanese drink to the attention of customers in a retail environment. The drink is incredibly popular throughout much of Asia, but still in the introductory stage in America. Here, it’s finding increasing acceptance with a trend-seeking millennial audience, particularly in university settings. Among its many other names, bubble tea is sometimes called boba tea or boba juice, pearl milk, or bobi.

Ready to turn your business idea into a reality? We recommend forming an LLC as it is the most affordable way to protect your personal assets. You can do this yourself or with our trusted partner for a small fee. Northwest ($29 + State Fees) DIY: How to Start an LLC

Start a bubble tea business by following these 10 steps:

• Plan your Bubble Tea Business
• Form your Bubble Tea Business into a Legal Entity
• Register your Bubble Tea Business for Taxes
• Open a Business Bank Account & Credit Card
• Set up Accounting for your Bubble Tea Business
• Get the Necessary Permits & Licenses for your Bubble Tea Business
• Get Bubble Tea Business Insurance
• Define your Bubble Tea Business Brand
• Create your Bubble Tea Business Website
• Set up your Business Phone System

We have put together this simple guide to starting your bubble tea business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas .

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

What will you name your business?

• What are the startup and ongoing costs?
• Who is your target market?

How much can you charge customers?

Luckily we have done a lot of this research for you.

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Bubble Tea Business Name Generator

If you operate a sole proprietorship , you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name , we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability .

It's very important to secure your domain name before someone else does.

Find a Domain Now

Powered by godaddy.com, what are the costs involved in opening a bubble tea business.

Depending on your location, and the product mix involved, you could spend as little as $15,000 or as much as six figures on startup costs. The low cost can involve adding used equipment to a section of an existing store that might sell pastries, cookies, smoothies, coffee, books, gifts and souvenirs, etc. Here’s how your costs might break down.

Rent -- $50,000 a year, or more - Remember, you’ll want to find a location where your audience hangs out. That might be a college campus environment or a similar young and vibrant setting. Rent tends to be pricey in such locations. Do you want a kiosk or a pick-up or sit-down setting? Will you be serving other foods or beverages? All of this will impact your rent.

Equipment -- $10,000 or more - The basics include gas or electric stove, blender, stirrers, shaker cups, sealer machine, refrigerator and ice maker. Most of this equipment can be bought online at sites such as  Boba Tea Direct . Or search online for used equipment.

Ingredients -- $2,000 or more for a starter supply - This includes tea, milk and fruit and flavor powders. You’ll pay additionally for whatever ingredients or supplies are necessary for sale alongside bubble tea, if any.

Logo development, signage and marketing materials -- Up to $10,000 or more - This might include everything from creating your logo to buying store signage and producing business cards, fliers and other sales and marketing literature.

Licensure, certification and liability insurance -- $750 or more, est. - Depending on your location and products sold, you’ll probably have to have a business license and a health permit at the very least. Visit the  U.S. Small Business Administration (SBA) website  to find out the licensing requirements in your state.

Staffing -- $25,000 or more - Initially, this might simply reflect what you -- as your sole employee -- need to take out of the business. You’ll spend less than this if you have a working mate, savings or second source of income. And you’ll spend more as your staffing needs increase.

It’s also possible to buy a bubble tea franchise and get most of your startup needs supplied as a package. However, you could spend well into six figures in franchising fees and costs. You’ll find examples of such opportunities  here  and  here .

What are the ongoing expenses for a bubble tea business?

Once you’ve established your presence, your ongoing costs will include ingredients and store staffing and operational costs. These variable costs will follow and reflect the amount of business you do at your store.

Who is the target market?

Depending on your location, one major segment of your audience is likely to include early adopters. These are people willing to try new products or experiences. Their word of mouth could be very valuable to you. If you’re establishing your business in a location where most prospects will be familiar with bubble tea, your customer base might consist of people who want to judge your tea and overall product mix against the competition.

Regardless of your location, customers will expect a pleasing and relatively low-cost break from their day.

How does a bubble tea business make money?

You’ll make a bubble tea drink for a cost of roughly 75 cents and sell the drink for a few dollars. Depending on your competition and pricing sensitivity, you could make a markup of 350 percent or better on the drink. Additional revenue might be derived from the other foods, drinks, or merchandise you sell.

What do the coffee houses in your geographic location generally charge for premium drinks? This is a good indication of what you might be able to charge It’s likely to be in the range of $3 to $5. Set a price point and see what the response is. And be sure to keep an eye on the pricing of direct (other bubble tea retailers) or indirect (coffee houses, smoothie shops, etc.) competitors.

How much profit can a bubble tea business make?

A 350 percent markup on a beverage is not unreasonable. Gross profit margins in the 75-80 percent range are not rare in the food and beverage retail industry.

How can you make your business more profitable?

Think what else you can make with the same or similar equipment purchased for bubble tea. You might also consider adding smoothies, coffee or ice cream to your menu. Or buy cookies, pastries or other dessert items for resell from nearby vendors. How about adding t-shirts, mugs, posters, music or other merchandise that might appeal to your same customer base? Try additional products for a while and see if they sell. If they don’t, adjust your mix.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

STEP 2: Form a legal entity

One crucial aspect that cannot be overlooked when starting your bubble tea business is the importance of establishing a solid business foundation. While sole proprietorships and partnerships are the most common entity types for small businesses, they're a far less stable and advantageous option than LLCs.

This is because unincorporated business structures (i.e., sole proprietorships and partnerships) expose you as an owner to personal liability for your business's debts and legal actions, while LLCs protect you by keeping your personal assets separate from your business's liabilities.

In practice, this means that if your bubble tea business were to face a lawsuit or incur any debts, your savings, home, and other personal assets could not be used to cover these costs. On top of this, forming your business as an LLC also helps it to appear more legitimate and trustworthy.

More than 84% of our readers opt to collaborate with a professional LLC formation service to kickstart their venture. We've negotiated a tailored discount for our readers, bringing the total down to just $29.

Form Your LLC Now

Note: If you're interested in more information before getting started, we recommend having a look at our state-specific How to Start an LLC guide (DIY) or our in-depth Best LLC Services review (for those opting for a professional service).

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

You can acquire your EIN through the IRS website . If you would like to learn more about EINs, read our article, What is an EIN?

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil .

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history , which can be useful to raise money later on.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

Federal Business Licensing Requirements

There are federal regulations regarding what can and cannot be added to, sold as, and processed with food. Attached is a resource from the Food and Drug Administration detailing the process of starting a food business: How to Start a Food Business

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a bubble tea business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits .

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses .

Certificate of Occupancy

A bubble tea business is generally run out of a storefront. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO).  A CO confirms that all building codes, zoning laws and government regulations have been met.

• If you plan to lease a location :
• It is generally the landlord’s responsibility to obtain a CO.
• Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a bubble tea business.
• After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.
• If you plan to purchase or build a location :
• You will be responsible for obtaining a valid CO from a local government authority.
• Review all building codes and zoning requirements for your business’ location to ensure your bubble tea business will be in compliance and able to obtain a CO.

Food Regulations

When selling food, you will need licensing from a local health department; all establishments serving food are required to pass a health inspection. Tips for faring well on a health inspections

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance . This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance . If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

FInd out what types of insurance your Bubble Tea Business needs and how much it will cost you by reading our guide Business Insurance for Bubble Tea Business.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners , we'll give you helpful tips and advice for creating the best unique logo for your business.

Recommended : Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker .

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator . Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a bubble tea business

The product’s novelty can work to your advantage. A certain market segment is always on the search for new products and experiences. Share with local customers and local media this story  of how bubble tea might have been invented. Also, be sure to make free samples available. The drink could be such a novelty in your location that the media will run stories before you open for business.

How to keep customers coming back

Your marketing efforts might be as simple as the distribution of fliers in your marketing area. Begin a Facebook page for bubble tea aficionados, and show the beverage and your store on Instagram. Film a video on YouTube or Vimeo showing how to make bubble tea. Consider serving the drink at city festivals, fairs, and other occasions when you can spread the word. If you do so, be sure to distribute fliers and business cards to invite customers to your primary location.

STEP 9: Create your business website

After defining your brand and creating your logo the next step is to create a website for your business .

While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

• All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
• Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
• Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Recommended : Get started today using our recommended website builder or check out our review of the Best Website Builders .

Other popular website builders are: WordPress , WIX , Weebly , Squarespace , and Shopify .

STEP 10: Set up your business phone system

Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.

There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Is this Business Right For You?

If you have retail or food service experience, you might be a natural for this business. You should also have the ability to creatively market a new concept, since many of your prospective customers will be unaware of what bubble tea is. 

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a bubble tea business?

Your typical workday could consist of a range of activities including:

• Taking orders and payments
• Crafting bubble tea drinks for your customers
• Cleaning your business
• Promoting and marketing your business in the community
• Meeting and serving customers and cross-selling other food or non-food items in your store

What are some skills and experiences that will help you build a successful bubble tea business?

You must find a location with ample foot traffic and a young, educated population. It’s also important to find competitively priced ingredient vendors so you can maintain the highest possible margins. You should also have a strong customer service outlook. Your customers will return for you and the atmosphere you provide as much as for the bubble tea you sell.

What is the growth potential for a bubble tea business?

As of this writing, the bubble tea business is still in its youth in America. It’s particularly popular in young-adult setting such as Austin, Texas and parts of California and the Southeast, but it’s unknown in significant portions of the nation. As word gets around on social media, your audience will find you if you’re based in a location where millennials are predominant. College campuses are among the best locations to open a bubble tea business. 

TRUiC's YouTube Channel

For fun informative videos about starting a business visit the TRUiC YouTube Channel or subscribe to view later.

Take the Next Step

Find a business mentor.

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Learn from other business owners

Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

What are some insider tips for jump starting a bubble tea business?

Get the word out. Especially if your market is relatively unaware of bubble tea. Let people learn what the beverage is, how it’s made, and how great it tastes. Also, try to pair bubble tea with at least one other complementary product. This will help you bring customers in the door and cross-sell.

How and when to build a team

While you’ll probably start as a sole employee or with family and friends, you’ll see the need to hire as soon as you can. The last thing you want is for customers to warn others away because of long lines or order mixups due to understaffed operations. Begin by hiring part-time crew members and addinig hours to meet traffic flow and revenue gain.

Useful Links

Industry opportunities.

• Franchise Opportunity With Gong Cha
• Franchise Opportunity With Kung Fu Tea
• Franchise Opportunity With Sharetea
• Franchise Opportunity with Chatime

Real World Examples

• CoCo Tea Ann Arbor
• Atlanta Honey Bubble
• California It's Boba Time

Further Reading

• How to Open a Bubble Tea Shop
• Bubble Tea Supply

Have a Question? Leave a Comment!

Bubble Tea Business Plan Template [Updated 2024]

Bubble Tea Business Plan Template

If you want to start a bubble tea shop or expand your current bubble tea store, you need a business plan.

The following Bubble Tea business plan template gives you the key elements to include in a winning Bubble Tea business plan. In addition to this template, a solid plan will also include market research to help you better understand the bubble tea market, your competitive advantage and your specific target market. It will also help you craft your bubble tea marketing plan and a strong financial plan.

You can download our Ultimate Business Plan Template (including a full, customizable financial model) to your computer here.

Bubble Tea Business Plan Example

Below are links to each of the key sections to help you craft your own Bubble Tea business plan: I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan

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Bubble Tea Business Plan Home I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan

How to Launch Your Own Successful Bubble Tea Shop

Main Sections In This Post Steps To Starting A Bubble Tea Business Points to Consider Resources Knowledge Is Power Featured Video

This post provides a comprehensive guide for aspiring bubble tea business owners, offering a step-by-step outline and valuable resources for the startup and operational phases.

Bookmark this page for future reference, and feel free to share it if you find it helpful!

Let’s get started with the steps.

Steps to Starting a Bubble Tea Business

Below are the steps to starting a bubble tea business.

Each step is linked to a specific section, allowing you to jump to your desired section or scroll to follow the steps in order.

• An Overview of What You’re Getting Into
• Bubble Tea Business Overview
• Researching Your Bubble Tea Business
• Looking at Financials
• Choosing A Business Location
• Creating Your Mission Statement
• Creating A Unique Selling Proposition (USP)
• Choose a Bubble Tea Business Name
• Register Your Company
• Create Your Corporate Identity
• Writing a Business Plan
• Banking Considerations
• Getting the Funds for Your Operation
• Software Setup
• Business Insurance Considerations
• Supplier Considerations
• Physical Setup
• Creating a Website
• Create an External Support Team
• Hiring Employees

This section will provide valuable insights to assist you in making informed decisions for your bubble tea business. It is highly recommended to carefully evaluate key points before proceeding to the startup phase. Take your time and make well-informed choices.

1.  An Overview of What You’re Getting Into

Is Starting a Bubble Tea Business the Right Step for You?

Passion: The Driving Force for Success

In the world of bubble tea business, one crucial factor contributes to success: You! Understanding your personal connection to owning and operating a business is of utmost importance.

The Power of Passion

Passion plays a vital role in achieving success. It serves as the driving force that fuels your motivation. When challenges arise, your passion for the business and its associated problems pushes you to seek solutions.

The Significance of Your Answer

Consider your level of passion for owning a bubble tea business.

Imagine a scenario where you have unlimited freedom and financial security for the rest of your life. In this situation, would you choose to start a bubble tea business?

Passion as a Guiding Light

A positive answer indicates your genuine passion for this industry and sets you on the right path.

However, if your answer is negative, it prompts a further question: What alternative would you prefer to pursue? Perhaps it is worth considering that alternative path instead.

In summary, passionate commitment to your chosen business, such as a bubble tea venture, is essential for achieving success in the industry.

For More, See How Passion Affects Your Business . Also, see, Considerations Before You Start Your Business to identify key points for a new business owner.

2. Gaining an Overview of Owning a Bubble Tea Business

Next, let’s spend some time on key issues to give you an overview of what to expect from owning and running your business.

a.) A Quick Overview of Owning a Bubble Tea Business

A bubble tea business is an establishment that specializes in selling bubble tea.

Bubble tea, or boba tea, is a sweet, flavorful beverage from Taiwan. The primary ingredients include tea, milk, tapioca pearls, or ‘bubbles.’ This trendy drink has gained significant popularity around the world.

Day-to-Day Operations of a Bubble Tea Business

The day-to-day tasks of running a bubble tea business are diverse. They include preparing the bubble tea ingredients, ensuring quality control, maintaining a clean and sanitary workspace, ordering supplies, managing staff, handling financial transactions, and serving customers.

Keys to Success in Operating a Bubble Tea Business

Building a Customer Base: The lifeblood of any retail business is its customer base. Successful bubble tea businesses focus on customer loyalty, use social media for promotion, and engage with their community to attract and retain customers.

Managing Staff: Staff management is critical. Proper training, a positive work environment, and efficient scheduling can help maintain high customer service.

Cash Flow Management: Ensuring a steady cash flow is crucial for covering operating costs. Sound financial management practices, like budgeting and cost control, can help maintain a healthy cash flow.

Keeping Up with Change and Technology: The food and beverage industry is constantly evolving. Incorporating the latest technology, such as online ordering and payment systems, can streamline operations and improve customer experience.

Handling Fluctuations in Revenue: Seasonal changes and economic fluctuations can impact revenue. Offering promotions during off-peak times and diversifying the menu can help balance these changes.

Dealing with Competition: Differentiating from competitors is key. Offering unique flavors, creating an inviting ambiance, or providing superior customer service can give your business an edge.

Customer Expectations and How to Meet Them

Customers expect fresh, tasty bubble tea served quickly and with a smile. This can be achieved using high-quality ingredients, training staff to prepare drinks efficiently, and fostering a friendly, welcoming environment.

Additionally, customers appreciate a varied menu, including seasonal flavors and options for different dietary preferences. Meeting these expectations will result in satisfied customers who will likely return and recommend your business to others.

b.) Bubble Tea Business Models

Types of Bubble Tea Business Setups and Their Business Models

Traditional Storefront: This business model involves setting up a physical shop in a high-traffic area. Revenue comes directly from in-store sales, with customers coming in to enjoy their bubble tea on the spot or for takeout.

Bubble Tea Truck: Operating a mobile bubble tea business allows for flexibility in location, bringing bubble tea to various events or popular spots around town. This model’s income comes from on-the-spot sales at different locations.

Online Bubble Tea Store: An online model involves selling bubble tea or kits directly to customers via a website. Revenue comes from online sales; products are typically shipped to customers’ homes.

Bubble Tea Kiosk: A kiosk, often located in a mall or shopping center, requires less space and investment than a traditional store. Income comes from sales to passersby in these high-traffic areas.

Bubble Tea Wholesale Business: This model involves bulk selling bubble tea supplies to other businesses, like tea, flavors, and tapioca pearls. Revenue comes from these wholesale transactions.

Bubble Tea Franchise: Buying into a franchise allows you to operate under a recognized brand. Franchisees pay initial and ongoing fees but benefit from the brand’s established reputation, support, and customer base.

Bubble Tea Cafe: This model combines bubble tea with a cafe atmosphere, often serving light snacks or desserts alongside the tea. Revenue comes from the sale of both drinks and food.

In conclusion, choosing the right business model from the beginning is crucial, as changing your model later can be more challenging. Identifying a profitable and high-demand niche for your bubble tea business is essential for its success.

Each business model offers different advantages and potential challenges, and the best fit will depend on factors like your target market, startup capital, and personal business goals.

c.) Making Your Bubble Tea Business stand out

Unique Recipes: Offering exclusive, innovative bubble tea flavors can distinguish your business from others. Experiment with different tea bases, milk, and additional ingredients to create unique blends.

Exceptional Customer Service: Providing excellent service is crucial in any business. Friendly, knowledgeable staff and a responsive approach to customer feedback can make your business memorable.

Engaging Branding: Create an appealing and distinctive brand identity. This can include a catchy name, an attractive logo, and a strong online presence.

Sustainability Initiatives: Commitment to environmental sustainability can appeal to eco-conscious customers. Using biodegradable cups, straws, and packaging can help differentiate your business.

Community Engagement: Involvement in local events or partnerships with other local businesses can raise your profile in the community and create a loyal customer base.

Regular Promotions: Seasonal deals, loyalty programs, or special discounts can attract customers and encourage repeat business.

d.) Add on Ideas for a bubble tea Business

Snacks and Desserts: Offering snacks that pair well with bubble tea, such as Asian pastries, cookies, or ice cream, can increase your average transaction size.

Customizable Bubble Tea Kits: Selling DIY bubble tea kits allows customers to make their favorite drinks at home. This can be a fun and engaging way for customers to interact with your brand.

Bubble Tea Classes: Offering classes where customers can learn to make their bubble tea can create an immersive customer experience and a new revenue stream.

Themed Merchandise: Selling branded merchandise like t-shirts , mugs , or reusable straws can enhance brand visibility and provide an additional income source.

Subscription Service: Implement a subscription service where customers regularly receive new flavors or bubble tea kits. This can build customer loyalty and provide predictable revenue.

Remember, the goal is to create a unique, engaging experience for your customers while finding ways to increase revenue. Successful add-ons should align with your brand, appeal to your target market, and complement your main offerings.

f.) Pros and Cons of Owning a Bubble Tea Business

Pros of Running a Bubble Tea Business

Be Your Own Boss: Running your own business allows you the autonomy to make decisions and shape the direction of the enterprise.

Creativity: You can innovate with new flavors, products, or marketing strategies.

Potential for High Revenue: With a successful bubble tea business, the potential for earning is significant, given the product’s popularity.

Flexibility: Once your business is established, and you have a reliable team, you can choose your working hours.

Control Over Your Working Environment: You have the power to create a positive and efficient work environment for both you and your employees.

Connection with the Community: As a local business owner, you can forge strong ties with your community and contribute positively to its growth.

Exciting Industry: The bubble tea industry is vibrant and fast-growing, providing an exciting field to work in.

Cons of Running a Bubble Tea Business

Responsibility for Problems: As the owner, you’re responsible for resolving any issues, from customer complaints to supply chain disruptions.

Irregular Pay: In the initial stages of your business, you may not earn a regular income until the business becomes profitable.

Difficult Startup Phase: Starting a business involves overcoming numerous challenges, including raising capital, acquiring permits, and establishing a customer base.

Extra Work Hours: You may need to work long hours, especially in the beginning, to ensure your business runs smoothly.

Pressure to Succeed: Running your own business can be stressful, with pressure to turn a profit and satisfy customers.

Substantial Initial Investment: Setting up a bubble tea business requires significant upfront costs for equipment, ingredients, rent, and more.

Business Risks: All businesses carry risks, from economic downturns to increased competition. These risks could impact your revenue and business stability.

Regulatory Compliance: Your business must comply with health regulations, permits, and licenses, which can be complex and time-consuming to navigate.

Balancing these pros and cons can help you make informed decisions as you start and operate your bubble tea business.

Remember, every challenge presents an opportunity for growth and learning.

For more, see Pros and Cons of Starting a Small Business.

3. Research

Thorough Research: The Foundation of a Successful Bubble Tea Business

Before embarking on any further actions, conducting thorough research is paramount for your bubble tea business. It provides you with quality information and prepares you for the journey ahead.

The Value of Experienced Voices

One of the best sources of information is individuals experienced in running a bubble tea business. Their expertise and knowledge make them a reliable and valuable resource.

The Priceless Insights of Experience

Spending time with these experienced individuals can be invaluable. Their years of experience and knowledge offer unique insights to guide your business decisions.

Approaching the Experts

To help you connect with the right people, I have written an article on how to approach experienced bubble tea business owners. This resource guides contacting them in an acceptable and non-threatening manner.

Expand Your Knowledge

While the detailed steps go beyond the scope of this post, I strongly suggest reading the article from the link below. It will give you a comprehensive understanding of the bubble tea business realm and what you need to know before proceeding.

By conducting thorough research and seeking guidance from experienced individuals, you will equip yourself with the necessary knowledge to make informed decisions for your bubble tea business. Read the article to gain insights and set a strong foundation for success.

See An Inside Look Into the Business You Want To Start for all the details.

Target Audience

Understanding your target audience is crucial for a bubble tea business. Knowing your target market, you can tailor your offers to appeal to customers and provide products and services that align with their interests.

Target Market Ideas:

• Health-conscious individuals seeking refreshing and nutritious beverage options
• Tea enthusiasts looking for unique and flavorful tea-based beverages
• Students and young professionals in need of a refreshing pick-me-up during their busy days
• Individuals who enjoy trying new and trendy food and beverage experiences
• People seeking alternatives to traditional caffeinated drinks like coffee or energy drinks
• Individuals with a preference for customizable options and a variety of flavors

A bubble tea business can effectively attract and satisfy its customer’s needs and preferences by identifying and catering to these target market segments.

For more, see How To Understand Your Target Market.

4. Looking at Financials:

Startup Costs: Setting a Solid Foundation for Your Bubble Tea Business

To ensure a successful launch of your bubble tea business, it is crucial to estimate the startup costs accurately. This overview provides insights into startup costs, monthly expenses, revenues, and profits, helping you navigate the planning phase smoothly.

Accurate Estimation: The Key to Success

Underestimating startup costs can lead to financial setbacks that may delay your business opening. On the other hand, overestimating costs can make your venture appear risky. Factors such as the size of your operation, location, equipment, and leasing options influence the overall cost.

Thorough Estimation Process

To estimate your startup costs, make a comprehensive list of all necessary items and gather prices through thorough research. Additionally, as you delve into the research, you may uncover other essential factors to include in your estimate.

For more detailed information, refer to my article on Estimating Startup Costs.

Sales and Profit: Key Considerations

The success of your bubble tea business relies on several factors, including the popularity and demand for your products and services. Effective marketing strategies play a vital role in bringing awareness to your business among the right target audience.

Understanding Profitability

Profitability extends beyond the profit earned per sale. It entails carefully considering various expenses, such as rent, payroll, and overhead costs. To achieve success, your monthly sales should sufficiently cover expenses and allow for a sustainable profit while ensuring you can pay yourself a salary.

Your bubble tea business can thrive in this competitive industry by estimating startup costs accurately and generating enough sales to cover expenses and ensure profitability.

For More, See Estimating Profitability and Revenue

Sample Financial Lists As a Starting Point

Sample Start-up Costs for a Bubble Tea Business

Here are estimated start-up costs for a bubble tea business:

• Business Registration and Permits: $500
• Lease Deposit for Shop Location: $3,000
• Interior Setup (Furniture, Decor, Signage): $10,000
• Bubble Tea Equipment (Tea brewers, shaker machines, sealer machines): $5,000
• Initial Inventory (Tea, tapioca pearls, cups, straws, flavorings): $2,000
• POS System: $1,500
• Initial Marketing and Advertising: $1,000

Total Estimated Start-up Costs: $23,000

Sample Monthly Expenses for a Bubble Tea Business

Here are estimated monthly expenses for a bubble tea business:

• Lease/Rent: $2,000
• Utilities (electricity, water, internet): $500
• Employee Wages: $4,000
• Inventory (Tea, tapioca pearls, cups, straws, flavorings): $2,000
• Equipment Maintenance: $200
• Marketing and Advertising: $500
• Insurance: $300
• Miscellaneous Expenses: $500

Total Estimated Monthly Expenses: $10,000

Sample Sales and Profit Breakdown for a Bubble Tea Business

Here is a sample sales and profit breakdown, assuming an average price of $5 per cup of bubble tea:

• Monthly Sales (2,000 cups sold): $10,000
• Less: Monthly Expenses: $10,000
• Net Profit Before Taxes: $0

However, once your business has grown and you’re selling more cups per month:

• Monthly Sales (4,000 cups sold): $20,000
• Net Profit Before Taxes: $10,000

Another way to increase profits is by reducing expenses, especially in the early stages. Our example shows employee wages at $4,000. If you could reduce or elimiate that in the early stages, this will boost profits.

Remember, these figures are just examples and a starting point for your planning. Every situation is unique, with various factors affecting the costs, expenses, and potential revenues. Your figures will likely be different.

Starting a business requires careful planning and consideration.

It’s essential to conduct thorough research and consider seeking professional advice when calculating your business’s start-up costs, operating expenses, and potential revenues and profits.

5. Choosing The Right Business Location

Location: A Critical Factor for Bubble Tea Business Success

Choosing the right location for your bubble tea business can significantly affect its success or failure. Your selected location will determine the demand and competition level.

Demand vs. Failure

Operating in an area with little to no demand for bubble tea can lead to failure even before your business takes off.

Competition: Striking the Balance

Opening in an area saturated with intense competition can make it challenging to establish your market share.

The Ideal Location

Ideally, aim for a location that offers both demand and an acceptable level of competition for your bubble tea business.

Affordability Considerations

Operating in a densely populated area provides more exposure but ensures that the extra expenses won’t undermine your business’s profitability.

Balancing Cost and Sales

Similarly, if you choose a more affordable location, evaluate its potential to generate sufficient sales.

Thorough Research Matters

Choosing the right location is crucial in achieving success for your bubble tea business. Conduct thorough research to make an informed decision that sets your business on the path to prosperity.

For more about business locations, see Choosing The Best Location for Your Business.

6. Create Your Mission Statement

A mission statement is crucial in identifying the purpose and main benefit a bubble tea business offers its customers and community. It serves as a guiding principle, helping the business stay focused and on track with its objectives.

Examples of Bubble Tea Business Mission Statements:

• “Our mission is to provide a refreshing and delightful experience through our wide selection of high-quality bubble tea beverages, crafted with premium ingredients, and served with a smile.”
• “At our bubble tea business, we are committed to promoting health and wellness by offering a diverse range of delicious and nutritious tea-based beverages that satisfy our customers’ taste buds while nourishing their bodies.”
• “Our mission is to be the go-to destination for bubble tea enthusiasts, where they can explore a vibrant menu of innovative flavors, indulge in customizable options, and enjoy an inviting and engaging atmosphere that fosters connections within the community.”

For more, see, How To Create a Mission Statement

7. Creating A Unique Selling Proposition (USP)

A Unique Selling Proposition (USP) assists in identifying and creating a distinct factor that sets your bubble tea business apart. It lets you define what makes your business special and highlights your unique customer benefits.

Examples of Bubble Tea Business USPs:

• “Our bubble tea business stands out by using only premium, organic ingredients sourced locally, ensuring a healthier and more natural beverage experience.”
• “We differentiate ourselves by offering an extensive range of exotic fruit-infused bubble teas, providing customers with a taste adventure they can’t find anywhere else.”
• “Our bubble tea business sets itself apart by providing a personalized experience, allowing customers to customize their drink with a wide selection of tea bases, flavors, and toppings, catering to individual preferences.”

8. Choose a Business Name

Choosing the Perfect Bubble Tea Business Name

A catchy and fitting business name is crucial for your bubble tea venture. You want a name that is easy to pronounce, memorable, and represents your brand effectively.

Long-Term Implications

Once chosen, business names are rarely changed, so it’s essential to select a name that you’ll keep throughout the lifetime of your company.

Online Presence Considerations

Your website will need a matching domain name to establish a strong online presence. Ensure that the name you desire is available and not already registered by another business.

30 Inspiring Bubble Tea Business Name Ideas

• Bubblicious Delights
• TeaTastic Treats
• Bubble Bliss
• Sip ‘n Smile
• Tapioca Temptations
• Flavor Fusion
• The Tea Hive
• Bubble Burst
• TeaRiffic Beverages
• Zesty Tea Co.
• Bubbles & Brews
• Quenchology
• Bubble Tea Haven
• Froth & Flavor
• TeaSpiration
• The Bubble Spot
• Tapioca Twist
• Tea Euphoria
• Bubble Brews & Beyond
• Sippin’ Serenity
• Pearl Perfection
• Bubble Buzz
• The Tapioca Tree
• Fizz & Frolic
• Bubble Tea Co.
• Sweet Sensations
• Savor the Sip
• Bubble Burst Delights

These name ideas can spark your creativity and help you create an original and captivating business name for your bubble tea venture.

For more, see the following articles:

• How To Register a Business Name
• Registering a Domain Name For Your Business

9. Register Your Company

Ensuring Legal Compliance for Your Bubble Tea Business

Ensuring the legal compliance of your bubble tea business is crucial for its success and long-term sustainability.

By following the necessary regulations and obtaining the required permits and licenses, you can operate your business smoothly and avoid legal complications.

Consulting with a Professional

Consider consulting with a legal or business professional specializing in small businesses to ensure your bubble tea business is set up properly and adheres to all legal requirements.

This expert guidance can help you navigate the complexities of legal compliance, tax benefits, and liability concerns.

Common Types of Registrations

Here are some common types of registrations to consider for your bubble tea business:

• Business Entity Registration: Register your business as a sole proprietorship, partnership, LLC, or corporation, depending on your preferred legal structure.
• Employer Identification Number (EIN): Obtain an EIN from the Internal Revenue Service (IRS) for tax purposes and hiring employees.

Permits and Licenses

Ensure you have the permits and licenses to operate your bubble tea business. Some permits and licenses to consider include the following:

• Business License: Obtain a general business license from your local government or municipality.
• Food Service Permit: Comply with health and safety regulations by obtaining a food service permit from your local health department.
• Seller’s Permit: If your state collects sales tax, obtain a seller’s permit to legally sell and collect sales tax on your bubble tea products.
• Signage Permit: If you plan to display signs or banners, check if a signage permit is required.
• Zoning Permits: Verify that your business location complies with zoning regulations and obtain necessary permits.

Consulting with local authorities and regulatory agencies will help you identify the specific permits and licenses required for your bubble tea business based on location and business operations.

You can confidently operate your bubble tea business by ensuring legal compliance and protecting your customers and reputation.

Registration:

• How to Register Your Business
• How To Register a DBA
• How to Register a Trademark
• How to Get a Business License

Business Structures:

• How to Choose a Business Structure
• Pros & Cons of a Sole Proprietorship
• How To Form an LLC
• How To Register a Business Partnership
• How To Form a Corporation
• How To Choose a Business Registration Service

10. Create Your Corporate Identity

Creating a strong corporate identity (Corporate ID) is essential for your bubble tea business.

A Corporate ID consists of various components such as your logo , business cards , website , business sign , stationary, promotional items, etc.

A consistent and professional design is crucial to make a positive impression on both new and existing customers. It helps establish brand recognition and fosters a sense of professionalism and trust.

By developing a cohesive and visually appealing Corporate ID for your bubble tea business, you can effectively convey your brand’s values, attract customers, and differentiate yourself from competitors.

Remember to align your design with your target audience and the unique aspects of your business to create a memorable and impactful brand image.

See A Complete Introduction to Corporate Identity Packages for more.

11. Writing a Business Plan

The Importance of a Bubble Tea Business Plan

A bubble tea business plan is a vital document for your venture.

It serves as a blueprint for acquiring funding, appealing to investors, and charting the course of your business through the startup phase and beyond.

Creating Your Vision

Crafting a bubble tea business plan involves significant time and effort. You’ll detail aspects ranging from the types of bubble tea you’ll serve to your customer attraction and retention strategies.

It’s a process that demands careful planning and thoughtful articulation.

The Value of a Comprehensive Plan

The labor you invest in your business plan will pay dividends. A well-rounded business plan provides a clear path for starting your bubble tea venture and a guide for its operation.

It equips you with a deep understanding of what you’ll need to launch your business and how to run it effectively.

Options for Drafting Your Business Plan

When formulating your bubble tea business plan, you have various choices.

You could write it from scratch, employ a professional business plan writer, utilize a pre-made template, or use business plan software.

Your Role in the Planning Process

No matter your chosen approach, your active participation in the process is crucial, particularly if you choose to work with a professional.

This involvement ensures your business plan is distinctive, encapsulates your vision, and effectively communicates your bubble tea business’s nature and your approach to management.

The Fluid Nature of Your Business Plan

Your bubble tea business plan is not a static document. As you gain experience and insights from the market, you should regularly review and optimize your business plan.

Timely updates reflecting your growing expertise will help refine your operations and keep your bubble tea business on the path to success.

A Fictitious Business Plan Example for a Bubble Tea

Executive Summary

Business Name: Bubble Bliss

Business Structure: Limited Liability Company (LLC)

Location: Downtown Austin, Texas

Vision: To become Austin’s leading bubble tea provider, offering each customer a unique, delightful experience.

Mission: To offer high-quality, innovative, refreshing bubble tea varieties in a vibrant, welcoming environment.

Finances: Seeking an initial investment of $50,000 to cover startup costs and the first three months of operation.

Company Description

Bubble Bliss is a start-up bubble tea shop offering various flavors, including traditional, fruit-infused, and unique seasonal options.

Bubble Bliss seeks to create an inclusive space where everyone, from tea aficionados to those new to bubble tea, can relax, connect, and enjoy our products.

Market Analysis

Industry Overview: The bubble tea industry has grown steadily over the past few years, with a rising trend of health-conscious and experiential consumers.

Target Market: Bubble Bliss targets Millennials and Gen Z in Austin who seek healthy and exciting beverage alternatives.

Competitor Analysis: While several bubble tea businesses in Austin, none offer the unique, seasonal flavors Bubble Bliss will provide.

Organization and Management

Business Structure: Bubble Bliss will operate as an LLC, with the founder as the CEO. We’ll hire a store manager, baristas, and part-time staff.

Roles & Responsibilities: The CEO will oversee business operations, while the store manager will handle daily store operations. The baristas will prepare bubble tea and interact with customers.

Services and Product Line

Bubble Bliss will offer a variety of bubble tea flavors, ranging from classic to unique, creative blends. We’ll also offer vegan and low-sugar options to cater to health-conscious customers.

Marketing and Sales Strategy

Our marketing strategy will leverage social media and local partnerships to engage our target market.

We’ll host grand opening events and offer initial discounts to attract customers. Our sales strategy focuses on delivering excellent customer service to encourage repeat business and word-of-mouth referrals.

Funding Request

We seek an initial investment of $50,000 to cover startup costs, including leasing a retail space, purchasing equipment and inventory, and funding marketing and staffing costs for the first three months.

Financial Projections

We project steady growth in sales over the first three years. We anticipate breaking even within the first two years with a net profit margin of approximately 20%.

For information on creating your business plan, see, How to Write a Business Plan.

12. Banking Considerations

Choosing the Right Banking Services for Your Bubble Tea Business

Consider selecting a nearby bank that specializes in serving business owners. This ensures convenience and access to tailored financial services.

The Benefits of a Separate Business Account

Opening a separate business account for your bubble tea business offers several advantages. It helps track expenses, simplifies bookkeeping, and provides clear documentation for tax purposes.

Building a Professional Relationship with Your Banker

Developing a professional relationship with your banker is a smart move. They can provide valuable advice and financial services and streamline application processes for business loans or other financial needs.

Accepting Credit and Debit Cards

To enhance customer convenience and expand payment options, consider applying for a merchant account or similar setup to accept credit and debit card payments.

By choosing the right bank, establishing a separate business account, and considering merchant account services, you can effectively manage your finances and provide convenient payment options for your bubble tea business.

For more, see, How to Open a Business Bank Account. You may also want to look at, What Is a Merchant Account and How to Get One.

13. Getting the Funds for Your Operation

Obtaining Funding for Your Bubble Tea Business

If you require financial assistance to start your bubble tea business, these tips can help you secure a loan to kickstart your venture.

Finding Funds for Your Bubble Tea Business

Securing the necessary funds to start and operate your bubble tea business. Various funding options include traditional lenders, private loans, seeking investors, selling assets, or using collateral.

Meeting with a Loan Officer: Key Considerations

When meeting with a loan officer, there are several considerations to keep in mind:

• Communicate your business plan, demonstrating your knowledge of the bubble tea industry and its potential for success.
• Prepare financial projections to show the loan officer your business’s expected revenue and profitability.
• Highlight your experience and expertise in the food and beverage industry, specifically in bubble tea.
• Be prepared to discuss your financial history, credit score, and any collateral you can offer to secure the loan.

Documents Needed to Apply for a Business Loan for a NEW Bubble Tea Business:

• Business plan outlining your concept, target market, competitive analysis, and financial projections.
• Personal and business financial statements.
• Personal and business tax returns.
• Proof of collateral, such as property or equipment.
• Legal documents, including business licenses, permits, and registrations.
• Resume highlighting relevant experience in the food and beverage industry.
• Bank statements and credit history.
• Lease agreement for your business location, if applicable.

Following these tips and preparing the necessary documents can increase your chances of obtaining funding to support your new bubble tea business.

See, Getting a Small Business Loan for more.

14. Software Setup

Software Considerations for Your Bubble Tea Business

When it comes to software for your bubble tea business, careful consideration is necessary to ensure smooth operations and efficient management of data and finances. Here are some key factors to keep in mind:

Implementing Software from Scratch

Research software options thoroughly, as it is easier to implement a program from scratch rather than switching to a new system once your data is already in another program. This helps avoid the complexities and challenges of data migration.

Exploring Demos, Reviews, and Forums

Look for software providers that offer demos, and use them to assess their functionality and suitability for your bubble tea business. Additionally, read reviews and explore forums to learn from the experiences of others who have used the software.

Financial Tracking and Tax Preparation Software

Research software options for tracking expenses and preparing financial documents required for tax filings. Consulting with your bookkeeper or accountant can provide valuable insights to help you choose your accounting software.

Software Considerations for a Bubble Tea Business

• Point of Sale (POS) Software: e.g., Square, Toast, Vend
• Inventory Management Software: e.g., TradeGecko, inFlow Inventory, Cin7
• Customer Relationship Management (CRM) Software: e.g., HubSpot, Salesforce, Zoho CRM
• Accounting Software: e.g., QuickBooks, Xero, Wave
• Online Ordering and Delivery Software: e.g., DoorDash, Uber Eats, Grubhub
• Social Media Management Software: e.g., Hootsuite, Sprout Social, Buffer

Consider these software options for your bubble tea business, considering your specific requirements and business needs. Research their features, compatibility, and customer reviews to make an informed decision that aligns with your operational objectives.

Check out Google’s latest search results for software packages for a bubble tea business.

15. Get The Right Business Insurance

Insurance Considerations for Your Bubble Tea Business

Before engaging in any activities at your bubble tea business, it is essential to have the appropriate insurance coverage to protect against unforeseen incidents. Consider the following concerns when seeking insurance:

• General Liability Insurance: Obtain coverage that protects your business against claims related to customer injuries, property damage, or accidents on your premises.
• Product Liability Insurance: Ensure your insurance policy covers any potential risks associated with your bubble tea products, such as allergic reactions or contamination issues.
• Workers’ Compensation Insurance: Protect your employees by having workers’ compensation coverage, which provides benefits in case of work-related injuries or illnesses.
• Property Insurance: Safeguard your physical assets, including equipment, inventory, and the physical location of your bubble tea business, against damage, theft, or other unforeseen events.
• Business Interruption Insurance: Consider coverage compensating for lost income and operating expenses if your business is temporarily unable to operate due to a covered event, such as a fire or natural disaster.
• Professional Liability Insurance: Also known as errors and omissions insurance, it protects your business from claims arising from professional negligence, such as improper handling of customer orders or advice.
• Insurance Broker Guidance: Seek assistance from a competent insurance broker who can guide you through the process, assess your specific needs, and ensure you have sufficient coverage to protect your bubble tea business.

By addressing these concerns and working with an experienced insurance broker, you can secure the appropriate insurance coverage to safeguard your bubble tea business from potential risks and liabilities.

For more, see What to Know About Business Insurance . You can also browse the latest Google search results for bubble tea business insurance .

16. Select Suppliers

Choosing the Right Suppliers for Your Bubble Tea Business

Establishing strong relationships with reliable suppliers is paramount for the success of your bubble tea business. Consider the following factors when selecting your suppliers:

Reliability and Trustworthiness

Partnering with suppliers who demonstrate reliability and trustworthiness is crucial. They should consistently deliver quality products on time, ensuring you have the necessary stock to run your business smoothly.

Competitive Pricing

Suppliers offering competitive prices play a vital role in your business’s success. By obtaining favorable pricing, you can pass on savings to your customers and increase your profit margin.

Mutually Beneficial Relationships

Treating your suppliers with respect and ensuring they also benefit financially is important. This fosters a positive and mutually beneficial working relationship. Clear communication and prompt payment practices contribute to a healthy partnership.

Sample List of Considerations for Selecting Suppliers:

• Quality of products and ingredients
• Pricing and payment terms
• Reliability and timeliness of deliveries
• Capacity to meet your business’s demand
• Reputation and track record in the industry
• Responsiveness to inquiries and concerns
• Compatibility with your business values and goals

By carefully selecting suppliers who meet your specific criteria and maintaining respectful and beneficial relationships, you can ensure a reliable supply chain for your bubble tea business and contribute to its long-term success.

For More See, How To Choose a Supplier.

17. Physical Setup

Layout: Creating an Efficient Bubble Tea Business Setup

Designing an efficient physical setup for your bubble tea business is essential for smooth operations. Consider customer flow, workspace organization, and equipment placement to optimize your layout and enhance productivity.

Signage: Guiding Customers and Demonstrating Professionalism

In addition to your main business sign, strategically place signage throughout your bubble tea establishment. Install signs in parking lots, exits, and special areas to direct customers effectively. Well-designed signage not only guides people but also showcases professionalism in your operation.

Office Setup: Enhancing Productivity and Organization

As a business owner, managing your bubble tea business will occupy a significant portion of your time in the office. Creating an organized workspace is crucial to increase productivity.

Ensure your office has the tools, technology, and resources to manage your business operations and administrative tasks effectively.

By carefully considering your physical layout, implementing informative signage, and establishing an efficient office setup, you can create a professional and functional environment that supports the success of your bubble tea business.

See, Here are Considerations for The Setup of Your Office, for tips and ideas to make your office work for you. Also, have a look at our article About Company Signs.

18. Creating a Website

The Benefits of a Website for Your Bubble Tea Business

A website for your bubble tea business offers numerous advantages in today’s digital age.

• Online Presence: A website allows you to establish an online presence, making it easier for potential customers to find and learn about your business.
• Increased Reach: Your website enables you to reach a wider audience beyond your physical location, attracting customers from different regions.
• Showcasing Products and Menu: A website allows you to showcase your bubble tea offerings, flavors, and customizable options, enticing customers with enticing visuals and descriptions.
• Convenient Ordering: With an integrated online ordering system, customers can conveniently place orders for pickup or delivery directly from your website.
• Customer Engagement: Engage with your customers through features like contact forms, feedback options, and social media integration, fostering a sense of connection and loyalty.
• Business Credibility: A well-designed website lends credibility to your bubble tea business, establishing trust and professionalism in the eyes of potential customers.
• Marketing and Promotion: Utilize your website to promote special offers, events, and new menu items, effectively reaching your target audience and driving sales.

A website can enhance your bubble tea business’s visibility, customer engagement, and credibility, ultimately contributing to its growth and success in the competitive market.

For more, see How to Build a Website for Your Business .

19. Create an External Support Team

Building an External Support Team for Your Bubble Tea Business

An external support team of professionals plays a vital role in providing valuable advice and services for your bubble tea business. These individuals are not part of your payroll but can be relied upon to enhance your business’s success.

Ideally, you can utilize their services per project, contractual, or hourly. While you may already work with some individuals, recognizing them as part of your team helps you appreciate their significance and consider expanding your network.

Building a strong support team takes time as you cultivate professional relationships and find people you can trust. It is an ongoing process that requires continuous effort.

Your support team may include accountants, lawyers, financial advisors, marketing specialists, technical advisors, and consultants.

By assembling a capable external support team, you gain access to expert guidance and assistance when needed. This collaboration strengthens your business operations and helps you navigate challenges effectively in the dynamic bubble tea industry.

For more, see, Building a Team of Professional Advisors for Your Business.

20. Hiring Employees

Managing Human Resources for Your Bubble Tea Business

In the early stages of your bubble tea business, handling all aspects of the operation yourself may seem feasible to avoid the expense of hiring employees. This approach can work well if it remains manageable, as payroll costs can be significant, especially during the initial phase.

However, as your business grows, handling all the management and operational tasks on your own may become challenging. Hiring employees can significantly enhance productivity when you hire the right individuals.

List of Essential Job Positions for Running a Successful Bubble Tea Business:

The following are job positions or outsourced services you may want to consider as your bubble tea business grows and becomes successful:

• Store Manager
• Inventory Manager
• Marketing Coordinator
• Social Media Manager
• Sales Representative
• Customer Service Representative
• Food Safety Specialist
• Accountant or Bookkeeper
• Cleaning Crew
• Graphic Designer (for marketing materials)
• Website Developer/Designer
• Packaging and Labeling Specialist
• Supply Chain Manager

Remember, this list will vary depending on your bubble tea business’s size and specific needs. As your business expands, consider the positions necessary to support its growth and success.

For more, see, How and When to Hire a New Employee.

Points To Consider

Hours of operation:.

Hours of Operation for a Bubble Tea Business

When determining the hours of operation for your bubble tea business, consider the following factors, including customer demand, competition, and operational feasibility:

Weekday Hours : Set hours that accommodate customers during weekdays, typically from Monday to Friday.

• Example: 10:00 AM to 8:00 PM

Weekend Hours : Extend your weekend operating hours to cater to customers with more leisure time.

• Example: Saturday and Sunday from 11:00 AM to 9:00 PM

Peak Hours : Identify the busiest times for your bubble tea business based on customer traffic.

• Example: Increase staffing and extend hours during peak periods, such as lunchtime or after-school hours.

Special Events : Consider adjusting your hours to accommodate special events or local festivities in your area.

• Example: Stay open later during community events or local celebrations.

Holiday Hours : Determine if you will operate on holidays and adjust your hours accordingly.

• Example: Open for reduced holiday hours or close entirely for major holidays.

Seasonal Variations : Assess whether your business experiences seasonal fluctuations and adapt your hours accordingly.

• Example: Adjust hours during summer months to cater to increased customer demand.

Competitor Analysis : Research the hours of operation of other bubble tea businesses in your area to remain competitive and capture customers during overlapping timeframes.

Remember, these hours are provided as examples, and you should tailor your business’s operating hours to meet the specific needs of your target market and location.

Regularly assess and adjust your hours based on customer feedback and changing market conditions to optimize your business’s success.

A List of Equipment and Supplies to Consider for a Bubble Tea Business:

Sure, here’s a list of the essential equipment you may need to start a bubble tea business:

• Tea Brewers: Used to brew various tea leaves for the base of bubble tea.
• Shaker Machines: These mix the tea, milk, and other flavorings to create a consistent taste.
• Sealing Machine: This equipment is used to seal the top of the bubble tea cup, making it leak-proof and easy to transport.
• Tapioca Pearl Boiler: A piece of specialized equipment used to cook tapioca pearls to the right consistency.
• Refrigeration Units: For storing perishable items like milk, fruit, and certain types of tea.
• Ice Machine: Most bubble tea drinks are served cold, so a reliable ice machine is essential.
• Counters/Cabinets: Prepare the drinks and store cups, lids, straws, and flavorings.
• Sinks: For washing equipment and maintaining cleanliness.
• POS System: A system for managing sales, inventory, and possibly customer loyalty programs .
• Measurement Cups and Spoons: For measuring ingredients accurately to ensure consistent flavor.
• Cups and Straws: Bubble tea is typically served in clear plastic cups with large-diameter straws for the tapioca pearls.
• Tapioca Pearl Scooper: To scoop tapioca pearls into cups.
• Tea Filters or Strainers: For straining tea leaves after brewing.
• Syrup Pumps: For portioning flavored syrups.
• Fruit Slicers and Juicers: If you’re serving fruit teas or using fresh fruit juice in your bubble teas.
• Water Boiler: Essential for brewing teas.
• Sugar Syrup Dispenser: A dispenser for sugar syrup, a common ingredient in bubble tea.

Remember, your specific equipment needs may vary depending on the size of your shop, the types of bubble tea you’re offering, and other factors related to your specific business model.

Marketing Considerations

Attracting Customers for Your Bubble Tea Business

A bubble tea business without customers is not a real business. To succeed, you must focus on attracting customers, especially in the early stages when your operation is new and unfamiliar to people.

Building Reputation and Marketing Experience

Assuming you build a good reputation, it becomes easier to attract customers over time. As your business gains recognition, you also acquire valuable marketing experience.

Continuous Marketing Efforts

Marketing your bubble tea business is an ongoing process. The more you invest in effective marketing techniques, the more revenue you generate.

Simplifying the Marketing Process

You don’t always need a marketing agency or expert to promote your business. Simplify the marketing process by seizing every opportunity to raise awareness about your bubble tea business.

You can establish a thriving bubble tea business with a growing customer base by implementing consistent marketing strategies and focusing on customer attraction.

See our article How To Get Customers Through the Door and our marketing section for articles that will provide ideas to bring awareness to your bubble tea business.

Evaluating Your Skill Set for Running a Bubble Tea Business

Assessing your skill set and determining if you possess the necessary abilities to successfully run a bubble tea business is crucial.

Remember, if you lack a particular skill, you can acquire it through learning or hiring someone with the expertise.

List of Essential Skills for a Bubble Tea Business Owner:

• Business Management : Strong business acumen, including planning, organization, and decision-making skills.
• Customer Service : Ability to provide excellent customer experiences and handle customer inquiries or concerns.
• Financial Management : Understanding financial principles, budgeting, and managing cash flow effectively.
• Marketing and Promotion : Knowledge of marketing strategies to attract and retain customers.
• Product Development : Ability to create and innovate new bubble tea flavors and menu offerings.
• Operations Management : Efficiently managing day-to-day operations, inventory, and equipment.
• Team Leadership : Leading and motivating employees ensures a productive and positive work environment.
• Communication : Effective communication skills for customers, suppliers, and staff.
• Problem-solving : Being able to identify and resolve issues promptly and efficiently.
• Industry Knowledge : Staying updated with the latest trends and developments in the bubble tea industry.

These essential skills, a passion for bubble tea, and a willingness to learn and adapt can contribute to your success as a business owner.

Expert Tips

Exploring expert tips is beneficial for both seasoned professionals and newcomers.

Experts can discover new approaches and gain fresh perspectives, while novices can acquire valuable tips to enhance their skills and knowledge.

Stay updated by searching for the latest expert bubble tea tips, which provide insights and guidance for continuous improvement in the industry.

Valuable Resources for Your Bubble Tea Business

In this section, you will find a collection of resources that provide access to the latest and most popular information relevant to the bubble tea industry.

These resources are invaluable during startup and when your business is fully operational.

Utilizing these resources can enhance your understanding of the industry, stay updated on current trends, and gain valuable tips for improving your bubble tea business.

Whether you seek guidance on menu development, marketing strategies, or operational best practices, these resources offer a wealth of information to support your business’s growth and success.

Trends and Statistics

Staying informed about industry trends and statistics benefits a bubble tea business. It provides valuable insights into consumer preferences, market dynamics, and emerging opportunities.

By keeping up with industry trends, you can adapt your business strategies, make informed decisions, and stay ahead of the competition.

See the latest search results for trends and statistics related to the bubble tea industry.

Bubble Tea Associations

Staying informed about industry trends and statistics benefits a bubble tea business.

It provides valuable insights into consumer preferences, market dynamics, and emerging opportunities. By keeping up with industry trends, you can adapt your business strategies, make informed decisions, and stay ahead of the competition.

See the search results related to bubble tea associations.

Top Bubble Tea Business

Examining established bubble tea businesses can provide inspiration and ideas for identifying gaps in the industry that you can address in your own business.

It also helps uncover any overlooked aspects of your operations.

Learn from successful businesses to innovate and improve, enhancing competitiveness and offering a unique value proposition.

See the latest search results for the top bubble tea businesses.

The Future of the Bubble Tea Industry

Researching the future of the bubble tea industry offers valuable insights for aspiring business owners. It helps identify emerging trends, consumer preferences, and potential market growth.

By understanding the industry’s future, you can make informed decisions, develop a competitive advantage, and position your bubble tea business for long-term success.

See the search results for the future of the bubble tea industry.

Researching industry prices is beneficial when starting a bubble tea business. It helps you understand pricing trends, competitive benchmarks, and customer expectations.

By gaining insights into industry prices, you can set competitive and profitable pricing strategies that align with market standards and customer preferences.

See the latest bubble tea prices.

Bubble Tea Businesses for Sale

Pros and Cons of Buying an Established Bubble Tea Business

Buying an existing bubble tea business that is already operational has its advantages and disadvantages.

Benefits of Buying an Established Bubble Tea Business:

• Immediate Revenue : You start earning revenue from the day you take over the business.
• Bypassing the Startup Phase : You skip the initial phase of setting up a business from scratch.
• Proven Business Model : The business has already demonstrated its viability and success.
• Financial Visibility : You have insights into the business’s revenue, profit, and expenses.
• Existing Customer Base : The business already has a customer base that provides a foundation for future growth.
• Established Reputation : The business has built a reputation in the market, fostering trust and customer loyalty.

Disadvantages of Buying an Established Bubble Tea Business:

• Higher Cost : The purchase price is usually higher due to the goodwill associated with acquiring the existing customer base.
• Potential Customer Loss : If you make significant changes to the business, it may lead to customer attrition and pose challenges.
• Inheriting Reputation : When purchasing a business, you also acquire its existing reputation, which includes both positive and negative aspects.

Considering these pros and cons is essential when deciding whether to buy an established bubble tea business or start from scratch, ensuring you make an informed decision aligned with your goals and resources.

See the latest search results related to bubble tea – businesses for sale to browse the latest listings.

Franchise Opportunities Related to a bubble tea

Pros and Cons of Buying a Bubble Tea Franchise

Exploring the option of buying a bubble tea franchise is worthwhile when considering starting a business. This opportunity may uncover aspects of bubble tea you hadn’t considered.

Pros of Buying a Bubble Tea Franchise:

• Proven Business Model : You can simply follow the established plan created by the franchise’s corporate office.
• Reputation and Marketing : Benefit from the franchise’s reputation and marketing efforts.
• In-depth Knowledge : Gain comprehensive insights about the business before committing to it.
• Corporate Support : Receive support and guidance from the corporate office throughout your franchise journey.

Cons of Buying a Bubble Tea Franchise:

• Higher Cost : Purchasing a franchise can be expensive due to initial fees and ongoing royalties.
• Limited Flexibility : Major changes to the business require approval from the corporate office.
• Strict Product/Service Guidelines : Operating within the approved products and services is essential.
• Operational Restrictions : You must adhere to the terms outlined in the franchise agreement.
• Ongoing Franchise Fees : Regular payments of franchise fees are required to maintain the franchise.

Consider these pros and cons carefully when deciding whether to pursue a bubble tea franchise. Thorough evaluation ensures you make an informed choice that aligns with your goals and resources.

See the latest search results for franchise opportunities related to this industry.

Knowledge Is Power if You Use It!

Leveraging Industry Knowledge for Your Bubble Tea Business

Knowledge is a powerful tool when applied effectively!

The internet offers a wealth of information about the bubble tea industry. By following the links in the following sections, you can access valuable resources to aid you in conducting research, navigating the startup phase, and optimizing your business’s operations.

Staying informed about industry trends, best practices, and emerging insights can empower you to make informed decisions and drive the success of your bubble tea business.

Explore the recommended resources to gain valuable knowledge and stay ahead in this dynamic and competitive industry.

A Day in the Life

Insights into a Day in the Life of a Bubble Tea Business Owner

“A Day in the Life” resources provide valuable tips and insights from industry professionals, offering an overview of what to expect as a bubble tea business owner.

Gain valuable insights from experienced individuals to better prepare yourself for the challenges and rewards of running a successful bubble tea business.

See the search results related to a day in the life of bubble tea business owners.

Bubble Tea Business Owners Interviews

Valuable Insights from Bubble Tea Business Owners

Interviews with experienced business owners in the bubble tea industry provide important information and insights.

Take the time to explore this section, as it offers different perspectives and valuable insights, helping you comprehensively understand the industry and what to expect.

See the search results related to interviews of bubble tea business owners.

Publications

Stay Updated with Bubble Tea Business Publications

Publications are an excellent resource for staying informed about the latest information in the bubble tea business.

They provide valuable insights and updates, allowing you to stay up-to-date with industry trends, best practices, and new developments.

See the search results for Industry publications.

Engage and Learn through Bubble Tea Forums

Participating in bubble tea forums opens the door to engaging in hot-topic discussions and building relationships within the industry.

It offers a valuable opportunity to gain insights into customer perspectives, providing you with invaluable information and fostering a deeper understanding of the market.

See the latest search results related to bubble tea forums.

Enhance Your Skills with Bubble Tea Business Courses

Engaging in courses related to the bubble tea business is an excellent method to learn and develop your skill set while staying updated with industry advancements.

These courses provide valuable knowledge and help you stay current in this dynamic industry.

See the latest courses related to running a bubble tea business.

Bubble Tea Blogs

Stay Informed and Inspired with Bubble Tea Blogs

Subscribing to bubble tea blogs is an effective way to gain ideas and stay updated with the industry.

By subscribing to various blogs and filtering out the ones lacking updates or value, you can curate a valuable collection that provides a constant flow of information to support your business endeavors.

Look at the latest search results for bubble tea blogs to follow.

Stay Current with Bubble Tea Industry News

Following the news is a great way to stay updated on the latest happenings in the bubble tea industry.

Set up alerts to receive timely notifications whenever new developments are covered by the media, ensuring you stay informed and ahead of the curve.

See what’s in the news related to the bubble tea industry.

Gain Insights and Discover New Topics through Bubble Tea Industry Videos

Watching videos about the bubble tea industry provides valuable tips and insights.

Additionally, explore related videos recommended by platforms like YouTube, which often offer fresh perspectives and cover topics you may not have previously considered.

See the links to YouTube Videos Below.

• Videos related to starting a bubble tea business can be found here.

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Home » Food

How to Start a Bubble Tea Shop [Business Plan]

A bubble tea shop, of bubble tea café or bubble tea bar, is a small, informal restaurant where bubble tea and light refreshments such as light snacks, sandwiches, muffins, fruit, or pastries are served to customers. Bubble tea shops sell bubble tea, a Taiwanese tea-based drink with a variety of toppings.

Bubble teas are described as “sweet teas in a thick Styrofoam cup, mixed with non-dairy creamer, ice, and a spoonful of black tapioca pearls. Some of the most recent reports released shows that the market size of the bubble tea industry in the US has grown 2.8 percent per year on average between 2017 and 2022.

Fortune Business Insights says that the global bubble tea market size was valued at USD 2.02 billion in 2019 and is projected to reach USD 3.39 billion by 2027. There are about 3,392 bubble tea shops all across the United States and they are responsible for employing 22,217 people.

Steps on How to Start a Bubble Tea Shop Business

Conduct market research.

Conducting market research before starting any business is key to the success of the business hence you must not open a bubble tea shop without conducting market research. Market research provides critical information about your market and your business landscape. It can tell you how your business is perceived by the customers and clients you want to reach.

It can help you determine who and where your customers are, and which customers are most likely to do business with you. In essence, thorough market research will give you the ability to understand how your target customers think and help you adapt to their needs.

a. Who is the Target Market for Bubble Tea Shop Business?

• Sportsmen and women
• Corporate executives
• Entrepreneurs
• Business people
• Celebrities
• Military men and women
• Every adult in the neighborhood where your bubble tea shop will be located.

b. Is Bubble Tea Shop a Profitable Business?

Yes, the bubble tea shop business is profitable. The industry is valued at nearly $2.5 billion around the world, and it is expected to continue experiencing significant growth throughout the next decade. So, if you are looking to capitalize on a growing global trend, bubble tea may be the perfect business opportunity for you.

c. Are There Existing Niches in the Industry?

Yes, there are existing niches when it comes to bubble tea shops. Here are some of them;

• Brick and mortar bubble tea shop (sit-down bubble tea shop)
• Drive through bubble tea shop
• Kiosk bubble tea shop
• The Grab-and-Go bubble tea café
• Upscale bubble tea shop
• Mobile bubble tea shop (bubble tea carts or bubble tea trucks)

d. Who are the Major Competitors?

• Cowcow’s Tea
• Chun Yang Tea
• Teapioca Lounge
• Kung Fu Tea
• Happy Lemon
• RedStraw Teabar
• Brew Tea Bar
• Buddy’s Lounge
• GuilTea Cravings
• Pearl’s Finest Teas
• Vivi Bubble Tea
• Gathers Tea Bar
• Spot of Tea.

e. Are There County or State Regulations or Zoning Laws for Bubble Tea Shop Business?

Yes, there are county and state regulations and zoning laws for bubble tea shops in the United States. Please note that the Food and Drug Administration (FDA) sets the federal Food Code. However, the FDA doesn’t oversee individual bubble tea shops. Instead, the various states use the Food Code as the basis for their own food codes. They may adopt its rules, interpret them differently or set their own rules.

Please note that in the United States, you are required to follow your own state’s food service code. Visit the FDA website for a list of food service codes by state. Use this to find the state authority handling restaurants and bars and view the laws that apply in your state.

f. Is There a Franchise for Bubble Tea Shop Business?

Yes, there are franchise opportunities for a bubble tea shop, and here are some of them;

• 7 Leaves Cafe
• Bee & Tea
• Bubbleology
• Bambu Desserts & Drinks

g. What Do You Need to Start a Bubble Tea Shop Business?

• A Feasibility Report
• Business and Marketing Plans
• Business Licenses and Permits
• A Good Shop facility
• EIN (Employer Identification Number)/Federal Tax ID Number.
• A Corporate Bank Account
• Startup Capital

Memorable Bubble Tea Shop Business Names

• Therasa Ferguson© Bubble Tea Shop, Inc.
• Out of Taiwan® Bubble Tea Café, LLC
• Cho Lee© Bubble Tea Bar, Inc.
• Boba Genius® Bubble Tea Café, Inc.
• Tim Ming™ Bubble Tea Shop, Inc.
• The Horizon™ Bubble Tea Café, LLC.
• Brown Sugar© Bubble Tea Shop, LLC
• Sweet Life® Bubble Tea Café, Inc.
• Lu Wang© Bubble Tea Shop, Inc.
• Red Dragon© Bubble Tea Café, Inc.
• Chang Li and Sons® Bubble Tea Bar, LLC
• Tea Lovers® Bubble Tea Bar, LLC
• Monica Lewis™ Bubble Tea Café, LLC
• Green Cups© Bubble Tea Shop, Inc.
• Moon Light® Bubble Tea Café, Inc.
• Santos Marcos™ Bubble Tea Café, Inc.
• Golden Cups™ Bubble Tea Bar, Inc.
• Homeland© Bubble Tea Café, Inc.
• Full House® Bubble Tea Bar, LLC
• Tina Tea™ Bubble Tea Shop, Inc.

Register Your Business

A. what type of business structure is best for bubble tea shop.

When it comes to starting a bubble tea business, you have several options when it comes to the business structure, but the one most players in this line of business consider is an LLC. It is common to consider an LLC because providers want to protect themselves from lawsuits.

Please note that an LLC will need an EIN if it has any employees or if it will be required to file any of the excise tax forms listed below.

b. Steps to Form an LLC

• Choose a Name for Your LLC.
• File Articles of Organization.
• Choose a registered agent.
• Decide on member vs. manager management.
• Create an LLC operating agreement.
• Comply with other tax and regulatory requirements.
• File annual reports.

c. What Type of License is Needed to Open a Bubble Tea Shop Business?

• General Business License
• Health and Safety Permit
• Food and Drinks Handlers’ License
• Zonal Permits
• Signage Permit
• Operational State Facility Inspections
• A music license if you want to play live, recorded, or streaming music in your bar or restaurant
• A dumpster placement permit that specifies where you can put your trash dumpster outside your bar or restaurant
• A valet parking permit if you plan to offer valet parking for customers
• Sidewalk permits if you plan to offer outside seating

d. What Type of Certification is Needed to Open a Bubble Tea Shop Business?

You don’t need any certifications to open a bubble tea business.

e. What Documents are Needed to Open a Bubble Tea Shop Business?

• Business and liability insurance
• Federal Tax Payer’s ID
• State Permit and Building Approval
• Certificate of Incorporation
• Business License
• Business Plan
• Employment Agreement (offer letters)
• Operating Agreement for LLCs
• Insurance Policy
• Online Terms of Use
• Online Privacy Policy Document
• Contract Document
• Company Bylaws
• Memorandum of Understanding (MoU)

f. Do You Need a Trademark, Copyright, or Patent?

If you are considering opening a bubble tea business, usually you may not have any need to file for intellectual property protection or trademark. This is because the nature of the business makes it possible for you to successfully run it without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.

Cost Analysis and Budgeting

A. how much does it cost to start a bubble tea shop business.

The cost required to open a bubble tea shop business may vary significantly. A sit-down bubble tea shop typically costs between $200,000 and $375,000 to set up. A large drive-through shop can cost between $80,000 and $200,000. A small kiosk bubble tea shop may cost between $25,000 and $75,000. A franchised sit-down bubble tea shop can cost up to $673,700.

b. What are the Costs Involved in Starting a Bubble Tea Shop

• The total fee for registering the business in the United States of America – is $750.
• Legal expenses for obtaining licenses and permits as well as the accounting services totaling – $1,200.
• Marketing promotion expenses (2,000 flyers at $0.04 per copy) for the total amount of $80.
• The cost for hiring a business consultant (writing of business plans inclusive) – $2,500.
• Insurance coverage at a total premium – $2,400.
• The cost of accounting software, CRM software, and payroll software – $1,500
• The cost for payment of rent for 12 months at $1.76 per square foot in the total amount of – $35,600.
• The cost for shop/facility remodeling – $25,000.
• Other start-up expenses including stationery – $500
• Phone and utility deposits will cost – ($2,500)
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $30,000
• The cost for start-up inventory – $16,027
• Storage hardware (bins, utensil rack, shelves, glasses case) – $3,720
• The cost for counter area equipment (countertop, sink, ice machine, etc.) – $6,000
• The cost for serving area equipment (glasses, flatware) – $3,000
• The cost for store equipment (cash register, security, ventilation, signage) – $3,150
• The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $8,000.
• The cost of launching an official website – $600
• The cost for our grand opening party – $3,000
• Miscellaneous – $2,500

c. What Factors Determine the Cost of Opening a Bubble Tea Shop Business?

• The size of the bubble tea shop
• The choice of location
• The required licenses and permits
• The type of facility
• The type of related products retailed in the shop
• The cost of hiring and paying a business consultant and attorney
• The cost for branding, promotion, and marketing of the bubble tea shop business
• The cost for furnishing and equipping the bubble tea shop business – facility
• The cost of insurance policy covers
• The cost for registering the business
• Source of your supplies and ongoing expenses
• Cost of recruiting and training your staff
• The cost for the purchase and customizing of uniforms, shoes, and caps for your employees
• The cost of opening the bubble tea shop business

d. Do You Need to Build a Facility? If YES, How Much Will It Cost?

It is not compulsory to build a new facility for your bubble tea business, but if you have the required finance, it will pay you to build your facility. The truth is that building or reconstructing a facility will help you come up with a facility that will perfectly fit into your overall business goals and vision.

e. What are the Ongoing Expenses of a Bubble Tea Shop Business?

• Supplies (inventory expenses)
• Utility bills (internet subscriptions, phone bills, signage and software renewal fees et al)
• Salaries of employees

f. What is the Average Salary of your Staff?

• Shop Manager (Owner) – $45,000 Per Year
• Accountant – $30,630,000 Per Year
• Bubble Tea Makers and Servers – $27,100 Per Year
• Cleaners – $25,000 Per Year
• Security Guard -$24,000 Per Year

g. How Do You Get Funding to Start a Bubble Tea Shop Business

• Raising money from personal savings and sale of personal stocks and properties
• Raising money from investors and business partners
• Sell shares to interested investors
• Applying for a loan from your bank/banks
• Source for soft loans from your family members and friends.

Write a Business Plan

A. executive summary.

Our bubble tea shop is a neighborhood bubble tea business that will be located in a fast-growing community in Edison, New Jersey. We have been able to secure a two-year lease agreement for a vacant shop within the city’s largest shopping mall.

We are fortunate to secure a facility with an option of renewal for 5 years at a rate that is favorable to us. Our bubble tea shop business is designed to meet both the health and safety standards as recommended by the local authority. Our customers are going to be treated with good music at all times.

b. Products and Service

• Bubble tea.
• Drinks and water.

c. Mission Statement

Our mission is to build a bubble tea bar business that will meet the needs of our customers in regions/cities where we have our outlets and to sell franchises all across the United States of America and Canada.

Vision Statement

Our vision is to grow our business all over the world and be the brand for quality bubble tea, a great crew, cool culture, and active community involvement. We want to be known as the bubble tea brand with the triple threat- nutritious, aesthetically pleasing, and delicious.

d. Goals and Objectives

The goals and objectives of a bubble tea business are to provide a retail outlet where patrons can go to buy and drink bubble tea.

e. Organizational Structure

• Shop Manager (Owner)
• Bubble Tea Maker and Server
• Security Guard

Marketing Plan

A. swot analysis.

• Ideal location for a bubble tea shop
• Highly experienced and qualified employees and management
• Access to finance from business partners
• Access to ingredients and supplies.
• A reliable, clean, healthy, and efficient method of preparing bubble tea.
• Financial constraints may restrict the publicity and branding of the business
• A new business that will be competing with well-established bubble tea shops and bubble tea franchises in the city.
• Inability to retain our highly experienced and qualified employees longer than we want during the teething stage of the business.

Opportunities:

• A rise in the number of bubble tea lovers within our market space (The surging popularity of bubble tea is expected to benefit the industry and attract new operators)
• Online market, new services, new technology, and of course the opening of new markets.
• The arrival of a new bubble tea shop within our market space
• Steady wage expenses and increasing prices of gas amid the low demand during the pandemic will reduce industry profitability.
• Economic uncertainty
• Liability problems
• The U.S. Food and Drug Administration (FDA) could change its regulatory status and decide to enforce strict regulations that can strangulate new businesses like ours.

b. How Do Bubble Tea Shops Make Money?

Bubble tea shops make money by selling the following products;

c. Payment Options

• Payment via bank transfer
• Payment with cash
• Payment via credit cards
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer

d. Sales & Advertising Strategies

• Introduce your bubble tea shop business by sending introductory letters alongside your brochure to corporate organizations, households, sports organizations, gyms, schools, socialites, celebrities, and other key stakeholders throughout the city where your bubble tea shop business is located.
• Advertise on the internet on blogs and forums, and also on social media like Twitter, Facebook, LinkedIn to get your message across
• Create a basic website for your business to give your business an online presence
• Directly market your products.
• Join local bubble tea shop associations for industry trends and tips
• Provide discount days for your customers
• Advertise our business in community-based newspapers, local TV and radio stations
• List your business on yellow pages ads (local directories)
• Encourage the use of word-of-mouth marketing (referrals)

Financial Projection

A. how much should you charge for your product/service.

On average, a store charges $3.00-$3.50 for a serving of bubble tea (16oz or 20oz serving).

b. How Much Profit Do Bubble Tea Shop Owners Make a Year?

It depends, an online report shows that on average, within the industry, a small to medium-sized bubble tea shop can earn anywhere from $60,000 to $160,000 in personal income for the shop owner.

c. What Factors Determine the Amount of Profit to Be Made?

• The capacity of the bubble tea shop
• The types of related products retailed in the shop
• The location the bubble tea shop is covering
• The management style of the bubble tea shop
• The business approach of the bubble tea shop
• The advertising and marketing strategies adopted by the bubble tea shop.
• The number of years the bubble tea shop business is in business

d. What is the Profit Margin of a Bubble Tea Shop?

The profit margin of a bubble tea shop is not fixed. However, many stores make $3 or more per serving. And materials can cost $0.75 or less. If you sell 500 products per day, you could bring in more than $30,000 per month before factoring in other expenses.

e. What is the Sales Forecast?

Below is the sales forecast for a bubble tea shop. It is based on the location of the business and other factors as it relates to such startups in the United States;

• First Fiscal Year: $240,000
• Second Fiscal Year:  $400,000
• Third Fiscal Year: $600,000

Set Up your Shop 

A. how do you choose a perfect location for bubble tea shop.

• The demography of the location especially as it relates to people that drink bubble tea regularly
• The demand for the bubble tea and related products offered by bubble tea shops in the location
• The purchasing power of businesses and the residents of the location
• Accessibility of the location
• The number of bubble tea shops, and restaurants that serve bubble tea in the location in the location
• The local laws and regulations in the community/state
• Traffic, parking and security et al

b. What State and City are Best to Open a Bubble Tea Shop?

• Edison, New Jersey
• Washington, D.C.
• Chicago, Illinois
• Philadelphia, Pennsylvania
• San Gabriel, California
• Honolulu, Hawaii
• New York City, New York
• Austin, Texas
• Las Vegas, Nevada
• Denver, Colorado.

c. What Equipment is Needed to Operate a Bubble tea shop?

• Bubble Tea Sealer Machine
• Shaker Machines
• Fructose Dispensers
• Blender and Extractor
• Automatic Tea Brewers
• Automatic Tapioca Pearl Maker
• Automatic Tapioca Pearl Cookers
• Boba Tea Shaker Cups
• Insulated Tea Dispensers
• Kitchen Equipment Supplies List
• Electric or Gas Stove
• Syrup Pump.

Hire Employees

When it comes to hiring employees for a standard bubble tea shop, you should make plans to hire a competent shop manager (you can occupy this position), account clerk, bubble tea maker and servers, cleaners, and security guard.

Launch the Business Proper

In recent times, no bubble tea shop opens its door for business without first organizing an opening party to officially launch the business. You can choose to do a soft opening if you are operating on a low budget or you can go for a grand opening party.

The bottom line is that with a proper launching of the bubble tea shop, you will be able to officially inform people in your city that your bubble tea shop is open for business.

a. What Makes a Bubble Tea Shop Business Successful?

• Choose a good location and shop facility to launch the business
• Make sure your shop is stocked with different flavors of bubble tea (give your customers options)
• Throw an open house party before officially opening the bubble tea shop business
• Be deliberate with your marketing sales approach
• Encourage the use of word of mouth to promote your bubble tea shop business
• Leverage on all available online and offline platforms to promote your bubble tea business

b. What Happens During a Typical Day at a Bubble Tea Shop?

• The shop is open for the day’s work
• The serving areas, chairs, and tables are properly arranged
• Walk-in customers are attended to
• Deliveries of orders are made
• Stocks are taken and reports are written and submitted to superior officers
• The business is closed for the day.

c. What Skills and Experience Do You Need to Build a Bubble Tea Shop Business?

• Excellent customer services skills
• Interpersonal skill
• Accounting and bookkeeping skills
• Business management skills
• Bargaining skill
• Work experience in a restaurant or bar environment
• Experience in managing people
• Experience in business administration
• Experience in handling different types of bubble tea-making equipment.

More on Food

How to Start a Profitable Bubble Tea Business [11 Steps]

By Nick Cotter Updated Feb 05, 2024

Business Steps:

1. perform market analysis., 2. draft a bubble tea business plan., 3. develop a bubble tea brand., 4. formalize your business registration., 5. acquire necessary licenses and permits for bubble tea., 6. open a business bank account and secure funding as needed., 7. set pricing for bubble tea services., 8. acquire bubble tea equipment and supplies., 9. obtain business insurance for bubble tea, if required., 10. begin marketing your bubble tea services., 11. expand your bubble tea business..

Before diving into the bubble tea industry, it's crucial to understand the market dynamics to tailor your business for success. A comprehensive market analysis will illuminate consumer preferences, competition levels, and potential gaps in the market. Here's how to get started:

• Research Consumer Trends: Look into current trends in beverage consumption, particularly focusing on bubble tea. Identify the preferences of different demographics, such as favored flavors or dietary restrictions.
• Analyze Competitors: Examine existing bubble tea shops in your target area. Note their product offerings, pricing, marketing strategies, and customer reviews to identify best practices and areas for improvement.
• Assess Supply Chain: Investigate potential suppliers for tea, tapioca pearls, and other ingredients. Consider quality, cost, reliability, and whether you can establish a unique selling proposition through your supply choices.
• Regulatory Environment: Understand the local regulations regarding food and beverage businesses. This includes health codes, business licensing, and any specific requirements for serving bubble tea.
• Market Demand Projection: Evaluate the size and growth potential of the bubble tea market in your region. Use data from market research reports or surveys to estimate future demand.

Are bubble tea businesses profitable?

Yes, bubble tea businesses have the potential to be profitable when run efficiently and strategically. Proper inventory management, an attractive atmosphere, menu variety and effective marketing can all help make a bubble tea business successful. Additionally, offering online ordering and delivery services may increase revenue.

Creating a detailed business plan is critical for the success of your bubble tea venture. It will serve as a roadmap, helping you to establish goals, understand your market, and manage financial projections. Here's what to include in your draft:

• Executive Summary: Provide an overview of your business concept, vision, and key objectives.
• Company Description: Detail the specifics of your bubble tea business, including location, name, and business structure.
• Market Analysis: Research and describe your target market, industry trends, and competitor analysis.
• Organization and Management: Outline your business's organizational structure and describe the backgrounds of your management team.
• Products Line: List and describe the bubble tea varieties and any related products you plan to offer.
• Marketing and Sales: Develop your strategies for attracting and retaining customers.
• Funding Request: If seeking financing, specify the amount needed and how it will be used.
• Financial Projections: Provide projected income statements, cash flow statements, and balance sheets for the next 3-5 years.
• Appendix: Include any additional documents or relevant information, such as resumes, permits, and leases.

How does a bubble tea business make money?

Bubble tea businesses make money through the sale of bubble tea drinks and related products. They are likely to have high customer traffic due to their popularity, so many businesses can generate significant profit. For example, a bubble tea business could target young adults who enjoy unique and fun food experiences: they are likely to visit frequently and spend money on the products. Additionally, they may bring their family or friends along, leading to further profits for the business.

Creating a bubble tea brand that resonates with your target audience and stands out in a crowded market is crucial for the success of your business. Your brand should reflect the unique personality of your offerings, and make a memorable impression on consumers. Here are some key steps to consider when developing your bubble tea brand:

• Define Your Brand Identity: Choose a brand name, logo, and color scheme that represent your bubble tea's style and flavor. Consider what makes your product unique and how you can communicate that visually and verbally.
• Understand Your Audience: Research your target demographic to understand their preferences and how to appeal to them. Knowing your audience helps tailor your branding and marketing efforts effectively.
• Create a Brand Story: Develop a compelling narrative that tells the story of your brand's origins, mission, and values. A strong brand story can create an emotional connection with customers.
• Consistent Branding Across All Touchpoints: Ensure that all your marketing materials, packaging, and online presence reflect your brand identity consistently for a cohesive brand experience.
• Trademark Your Brand: Protect your brand by registering the name and logo as trademarks, preventing others from using your hard-earned brand recognition.

How to come up with a name for your bubble tea business?

Coming up with a name for your bubble tea business can be a challenging yet exciting process. First, consider what type of experience you want people to have when they visit your business. This insight can help you identify keywords or feelings that can be used as inspiration for potential names. You can also look to the history of bubble tea and use names or phrases from its origins. Additionally, consider making the name memorable and easy to spell and pronounce. Lastly, ensure your bubble tea shop name isn’t already taken by others in the industry with a quick online search. Using this process will allow you to find a business name that encapsulates your brand and stands out from the rest.

Formalizing your business registration is a critical step in legitimizing your bubble tea venture. This process varies by location but typically involves a few key actions that ensure your business is legally recognized and permitted to operate. Here’s what you need to do:

• Choose a business structure: Decide whether your bubble tea business will be a sole proprietorship, partnership, LLC, or corporation. Each has different legal and tax implications.
• Register your business name: Check for name availability and register your business name with the appropriate state agency. If you plan to operate under a different name, file a DBA (Doing Business As).
• Obtain an EIN: Apply for an Employer Identification Number (EIN) from the IRS for tax purposes, especially if you will have employees.
• Register for state taxes: Register with your state's taxation authority to handle sales tax, payroll tax, and any other state taxes.
• Acquire permits and licenses: Check with your local city or county about necessary permits and licenses, such as a business license, health department permit, and food service license.
• File your business documents: Submit any required documents, such as Articles of Incorporation for a corporation or Articles of Organization for an LLC, to your state's business filing agency.

Resources to help get you started:

Explore critical resources specially crafted for bubble tea entrepreneurs to glean market trends, operational excellence, and strategic business growth advice:

• Bubble Tea Academy: Offers comprehensive training courses and industry reports for starting and running a successful bubble tea business. https://www.bubbleteaacademy.com
• World Tea News: Provides the latest updates and insights on the global tea market, including trends specifically related to bubble tea. https://www.worldteanews.com
• Beverage Industry Magazine: Features articles, case studies, and news on the broader beverage sector, with occasional deep dives into niche segments like bubble tea. https://www.bevindustry.com
• Bubble Tea Insider Newsletter: A periodical offering specialized tips, supplier discounts, and exclusive insights for bubble tea shop owners (Subscription required). https://www.bubbleteainsider.com
• Small Business Administration (SBA): Offers a plethora of resources for small business owners in the food and beverage industry, providing access to financing, training, and business planning. https://www.sba.gov

Before you can start serving delicious bubble tea to eager customers, it's crucial to ensure that all legal requirements are met. Acquiring the right licenses and permits is an essential step in setting up a bubble tea shop to operate within the law and avoid any potential setbacks. Follow these bullet points to guide you through the process:

• Business License: Contact your city or county clerk's office to apply for a general business license, which is the basic permit you need to operate a business legally in your area.
• Food Service License: Since bubble tea is a food service, you'll need to get a food service license from your local health department, which will likely involve a health inspection.
• Employer Identification Number (EIN): If you plan on hiring employees, you'll need to obtain an EIN from the IRS for tax purposes.
• Resale Permit: A resale permit allows you to buy ingredients and supplies wholesale without paying sales tax, and to collect sales tax from your customers.
• Building Health Permit: If you are building a new shop or renovating an existing space, you might need this permit to ensure your shop meets building codes and health regulations.
• Signage Permit: Some localities require a permit for business signage, which may regulate the size, lighting, and placement of your shop's signs.

What licenses and permits are needed to run a bubble tea business?

In order to run a bubble tea business, you will need to obtain several licenses and permits. These may include a business license, health permit, food establishment permit, food handler’s permit, alcohol license (if you plan to serve alcoholic beverages), tobacco license (if you plan to sell tobacco products) and occupational safety and health license. In addition, if you plan to operate a mobile bubble tea business, you may need a mobile vendor permit.

Opening a business bank account and securing the necessary funding are essential steps in establishing a solid financial foundation for your bubble tea business. These measures not only help in managing your finances effectively but also in building credibility with suppliers and investors. Here's what you need to consider:

• Research banks that offer business accounts with benefits like low fees, easy access, and additional services tailored to small businesses.
• Prepare the required documentation, which typically includes your business registration, EIN, and personal identification, to open your business bank account.
• Consider your funding needs carefully and explore options such as small business loans, lines of credit, investors, or crowdfunding platforms specific to the food and beverage industry.
• Develop a comprehensive business plan that outlines your financial projections, including costs, expected revenue, and growth strategy to present to potential lenders or investors.
• Understand the terms and conditions of any funding you accept, including interest rates, repayment schedules, and any potential impacts on your business ownership and control.

Setting the right price for your bubble tea is a crucial step in establishing your business. It balances customer satisfaction with profitability to ensure the sustainability of your venture. Here are key considerations to help you determine the ideal pricing:

• Analyze your costs: Include ingredients, labor, rent, equipment, and other overheads to understand the minimum price point for profitability.
• Research the market: Look at competitors' pricing and position your product accordingly, whether as a premium offering or a value alternative.
• Understand your customers: Know your target demographic's spending habits and price sensitivity to set prices they are willing to pay.
• Factor in perceived value: Price your bubble tea to reflect its quality, branding, and any unique selling points that differentiate it from others.
• Consider pricing strategies: Explore various pricing strategies such as penetration, skimming, or cost-plus to find what aligns with your business goals.
• Adjust for location: Take into account the location of your shop, as prices may vary based on local economic conditions and customer expectations.
• Plan for promotions: Decide if you'll offer discounts, loyalty programs, or introductory prices to attract customers initially and how this will impact your regular pricing.

What does it cost to start a bubble tea business?

Initiating a bubble tea business can involve substantial financial commitment, the scale of which is significantly influenced by factors such as geographical location, market dynamics, and operational expenses, among others. Nonetheless, our extensive research and hands-on experience have revealed an estimated starting cost of approximately $25500 for launching such an business. Please note, not all of these costs may be necessary to start up your bubble tea business.

Starting a bubble tea business requires careful selection of equipment and supplies to ensure quality and efficiency in service. It's important to balance cost with the needs of your business model, ensuring you have all the necessary tools to produce delicious bubble tea. Here's a list of essential items you'll need:

• Commercial Blender: For making smoothies and blending ice.
• Shaker Machine: To evenly mix the bubble tea ingredients.
• Sealing Machine: For sealing the cups and ensuring spill-proof drinks.
• Tea Brewers: For brewing tea leaves – consider both hot and cold brewing systems.
• Tapioca Pearl Cooker: To perfectly cook tapioca pearls or boba.
• Measuring Scoops and Cups: For consistent serving sizes.
• Syrups and Powders: Flavors for creating a variety of bubble tea options.
• Bubble Tea Cups and Straws: Typically larger than regular cups and straws to accommodate the pearls.
• Refrigeration System: To keep ingredients fresh and cool.
• Sinks and Cleaning Equipment: For maintaining hygiene and cleanliness.
• POS System: To manage orders and transactions efficiently.
• Storage Containers: For keeping ingredients organized and easily accessible.

List of software, tools and supplies needed to start a bubble tea business:

• Equipment: Blender ($100 - $200), Electric Tea Kettle ($35 - $55), Tea Dispenser ($50 - $90)
• Ingredients: Bubble Tea Powder ($2/scoop), Milk/alternative/ice cream ($2/cup), Tapioca Pearls ($1/cup)
• Drink Supplies: Tea Cups ($0.20 - $0.30/cup), Straws (5-10 cents per piece), Lids (5-15 cents per piece)
• Reusable Containers: Reusable Bottles, Cups, and Bags (average cost of $6-$12 each)
• Tools & Consumables: Tea Strainers, Scoops & Spoons (approx. $5 each) , Small Containers for Toppings (approx. $2 each)
• Cleaning Supplies: Sponges, Wipes, Gloves (varies depending on type and quality)
• POS Systems: Ongoing fees may vary from month to month but average around $50 to start
• Marketing Materials: Business Cards, Flyers & Posters(approximately 40 cents per card or flyer)
• Website Setup & Maintenance Fees May Vary But Can Start Around $100-$150 Per Year
• Miscellaneous Supplies: Kitchen Utensils & Supplies (approx. $20-$30)

As you prepare to launch your bubble tea business, it's important to consider the various types of business insurance that can protect your investment and provide peace of mind. Insurance can safeguard against unforeseen events such as property damage, liability claims, and employee-related risks. Below are essential steps to take in obtaining the right insurance coverage:

• Research different types of insurance policies relevant to food and beverage businesses, such as general liability insurance, product liability insurance, property insurance, and workers' compensation.
• Consult with an insurance broker or agent who specializes in small businesses or specifically in the food service industry to get tailored advice for your bubble tea shop.
• Compare quotes from multiple insurance providers to find the best coverage options at competitive rates.
• Consider any additional coverage that may be beneficial, such as business interruption insurance, equipment breakdown insurance, or spoilage coverage.
• Ensure that the insurance policy you select meets any specific legal requirements in your area and is adequate for your business size and scope.
• Review and update your insurance policy regularly to reflect any changes in your business operations or assets.

Starting a bubble tea business is exciting, and marketing is crucial to attract and retain customers. As you launch your bubble tea services, it's important to create a buzz and make sure your target market knows about your delicious offerings. Here are some strategies to kick off your marketing efforts:

• Create social media profiles on platforms like Instagram, Facebook, and Twitter to share vibrant photos of your bubble tea, promotional events, and customer testimonials.
• Partner with local businesses and event organizers to provide bubble tea catering at community events, which can increase brand visibility and reach new customers.
• Offer opening week discounts or loyalty programs to encourage first-time visitors to become regulars.
• Engage with influencers or bloggers in the food and beverage industry to review your bubble tea, helping to spread the word to a wider audience.
• Invest in targeted online advertising through Google Ads or social media platforms to reach potential customers who are searching for bubble tea or similar refreshments.
• Set up a referral program that rewards customers for bringing friends and family to your store, fostering word-of-mouth marketing.
• Distribute flyers and promotional materials in high foot-traffic areas, and consider local newspaper or magazine ads for broader local reach.

Once your bubble tea business has gained a solid foundation with a loyal customer base, it's time to consider expansion. This growth phase can be both exciting and challenging, as it often involves making strategic decisions to scale your operations and increase your market reach. Here are some tips to guide you through expanding your bubble tea business:

• Explore franchising opportunities – Licensing your business model to franchisees can help expand your brand's presence quickly.
• Open new locations – Conduct market research to identify new areas with high demand for bubble tea and low competition.
• Diversify your menu – Introduce new flavors, seasonal specials, or healthy options to attract a wider customer base.
• Invest in marketing – Boost your online presence and engage with customers through social media campaigns and influencer partnerships.
• Enhance the customer experience – Implement loyalty programs or mobile ordering to encourage repeat business.
• Strengthen your supply chain – Negotiate with suppliers for better prices or look for alternative sources to ensure product quality and availability.
• Consider e-commerce – Set up an online store to sell bubble tea kits or merchandise, allowing customers to enjoy your products at home.

How to Start Your Own Bubble Tea Business

Table of contents.

For many Americans, bubble tea is a relatively new concept. After being invented in Taiwan in the 1980s, the fun drink with a giant straw has exploded in popularity across Asia — and throughout the world. Bubble tea is in such high demand globally that McDonald’s put it on the menu in Germany .

If you are a bubble tea fan, or simply interested in investing in a business with a tremendous potential for growth, you may be thinking about starting your own bubble tea business. Doing so requires careful thought and planning — as well as getting the right supplies to make your business a success. Read on to learn more about how to start your own bubble tea business, complete with recommendations for custom cups that will allow your product and your brand to shine.

What Is Bubble Tea?

Bubble tea, or boba, is a Taiwanese treat that has become incredibly popular in the United States. The word “boba” is used more broadly to refer to any drink with something in it, such as fresh juice with chunks of fruit. Bubble tea (which may also be called pearl milk tea) is a version of boba that involves black tea, milk, ice, and tapioca pearls — the bubbles in bubble tea.

These pearls are made from tapioca starch. The hard white tapioca pearls are boiled and then steeped in a sugary syrup for hours until they become large, chewy, and take on a black color. Bubble tea is offered in a range of flavors, from mango to strawberry to matcha. Other teas — or even coffee — may be substituted for the traditional black tea.

Bubble tea is served in clear cups to allow customers to see the tapioca pearls. Fat straws are a must for bubble tea so that the bubbles can shoot up the straw as a person drinks.

This drink has become incredibly popular both in Asia and here in the United States. The industry is expected to grow by $2 billion to $4.3 billion by 2027 . The United States is expected to account for 18.7% of the global bubble tea market by 2026 .

Getting Started with Your Own Bubble Tea Shop

Given the growing demand for bubble tea, setting up a boba business makes sense for many entrepreneurs. While franchises for established brands are available, given the relative simplicity of the product, you can also go out on your own.

Step 1: Decide If a Bubble Tea Business Is Right for You

Boba tea is definitely having a moment. As demonstrated above, it is incredibly popular in the United States right now. But before you make the leap and become a bubble tea entrepreneur, it makes sense to spend some time thinking about whether or not it makes financial sense for you.

Depending on a few factors, it can cost anywhere from $75,000 to $500,000 to start your own boba tea shop. You will need to do a deep dive to determine if you can raise the capital to start this type of business based on projected costs and profits. For example, a more expensive retail space located near a college campus could cost quite a bit to lease – but it may be more profitable than a boba tea shop located in a strip mall with less foot traffic.

Common costs associated with setting up a bubble tea business include:

• Incorporating ($150 to $200)
• Obtaining business licenses and permits ($100 to $300)
• Getting insurance for your business (could cost $500 or more per year for a commercial general liability policy)
• Buying business cards and brochures ($200 to $300)
• Setting up a website and social media profiles ($1,000 to $3,000)
• A deposit on leased premises, plus the first month’s rent ($3,000 to $7,000)
• Construction on the shop plus purchasing necessary equipment and furnishings ($15,000 to $30,000)
• Ingredients inventory ($2,000 to $4,000)

Again, these costs can vary widely based on multiple factors. It is imperative to do your research to determine exactly what your expenses will be before you embark on the process.

A boba tea shop could lead to $6,000 to $9,000 per month in profit . Of course, making this kind of money depends on your ability to charge $5.00 or more per cup of tea. If you live in an economically depressed area or a community that just isn’t that into bubble tea, then it may be hard to turn that kind of profit.

You should also think about the difficulty of starting your own shop from scratch. There are a few bubble tea shop franchises available, which can make it easier to get up and running. However, for many people, buying into a franchise is more expensive than setting up a shop on their own. You should do some careful calculations to figure out which option is best for you.

Finally, remember that the popularity of bubble tea shops can be a positive – but it can also work against you. While boba tea shops were once hard to find outside of certain areas of the country, they are now much more common. The market may quickly become saturated with bubble tea shops, so it’s important to think about whether there is an opening in your particular area for this type of business.

Step 2: Develop The Concept

The first step in starting any business is to come up with a concept that works. In this case, the concept is bubble tea. Think about whether you want a more extensive menu, if the shop will be sit-down or carryout, and the overall style of your store.

One of the great things about boba tea shops is that there are seemingly endless variations on flavors, types of tea, and add-ins like fruit, powders, jellies, and even mini mochi. This near-infinite level of customization can be a great way to set your boba tea shop apart from the crowd, but it can also be a bit overwhelming. You will need to do some research to figure out your target market so that you can develop a menu that will be successful.

For example, if your market research shows that your most likely customers are millennials working at office jobs, that may inform the types of drinks you offer. It may even influence you to add light snacks to the menu, as your customers may want to pick up a dessert or a sandwich to go along with their tea. Alternatively, if you are planning to open up shop in a trendier area, you might be able to go for more daring offerings. Certain toppings or flavors might not go over well in a small town, but they could be popular in a more diverse area where people may be more willing to try unusual flavors.

Your market research should also inform other aspects of your concept. Generally, bubble tea is more popular among younger people. This fact should inform every aspect of your concept, from your logo to your brand colors to the design of the shop itself. 

You should also consider your target audience when planning your advertising and marketing strategy. For example, younger people are more likely to be on TikTok than on Facebook. While it is a good idea to have a Facebook business page, you should spend time developing content for other forms of social media so that you attract your preferred audience.

Step 3: Pick a Name and Logo

Once you have decided on a concept, it is time to pick a name and develop a brand identity. Broadly speaking, a brand identity is all of the visible elements of a brand. This can include the brand colors, its logo, and the overall design of each of these elements. For example, 

Kung Fu Tea uses bold black, red, and white illustrations for its logo and the various illustrations on its boba tea cups.

Your brand identity will be the way that customers identify you as a business, so it is vital that you spend some time to make sure that you get it right. It should be easily recognizable, attractive, and memorable. 

Come up with a logo and design concept that is versatile enough to be used throughout your branding materials. Your logo will need to be able to work well on your website, your storefront, your plastic drink cups , etc. For this reason, it’s best to work with a logo that can be made mono-color (one color), so that you can change the color of your logo to pop against many different colored backgrounds.

Spend some time researching competitors, and find a way to set your store apart from theirs. If you need some help brainstorming, we compiled over 30 of our favorite creative restaurant and coffee/tea shop names for inspiration. You can also consult with a branding expert to help develop your brand and choose a name.

When picking a name, remember the following:

• Short names are easy to remember
• The name should be easy to both say and spell
• The name should be relevant to your concept
• Including keywords – like bubble tea or boba tea – can help with search engine optimization ( SEO )
• Avoid any offensive words or imagery
• If you use Chinese characters as part of your logo, make sure that they are accurate
• Ask friends and family for their opinion on your name

Be sure to check to make sure that the business name that you ultimately select isn’t already taken. You can do this by checking your State corporate database, and by doing a quick Google search. If the name isn’t already in use, you can start taking the next steps.

Step 4: Find A Location

Next, figure out a location. This decision will be based in part on your concept. If you plan on having a sit-down restaurant, you will want a place with plenty of parking, as well as easy access by foot. Demographics are also important. According to the New York Times, bubble tea shops often do well near college campuses . For some entrepreneurs, a bubble tea truck may make the most sense, allowing you to drive to events, festivals, and busy lunch locations to offer your wares.

Cost is also a huge factor here. While a shop near a college campus might be the ideal location, this type of retail space is often more expensive. If that doesn’t fit within your budget, you will need to reevaluate and find another space to lease or buy. When you are looking at spaces, ask about the cost per square foot (if it isn’t included in the listing). This number breaks down the price based on the size of the commercial space and can be used as a reference point for how much spaces will cost in a particular area of town. The formula for figuring out monthly lease prices this way is by multiplying the total square feet by the price per square foot and then dividing by 12. For example, retail leases in a downtown area may cost $23 per square foot on average, which means that a 1,500 square foot shop will run about $2,875 per month in rent. You can use this formula to help determine if you are getting a good deal on rental space.

Step 5: Write a Business Plan and Obtain Financing

Once you have developed a concept and brand and chosen a location, it is time to think about financing. This usually requires writing a business plan to qualify for a loan or to attract investors. A business plan can also be useful as a strategic roadmap for your company’s growth.

A business plan typically includes a number of elements, including:

• An executive summary, which is an overview of the business plan as a whole
• Concept, which includes a description of the company, its vision, mission statement, ownership structure, and corporate goals
• Products and services, including menu items
• Market analysis, including your target demographic, trends in demand, and prospects for growth
• Competitive analysis, which should highlight your main competitors and note your main advantages over their shops
• Marketing plan, which explains how you plan to promote your store
• Management and operations, including who will be running the shop, its physical location, staffing, and other logistical details
• Financial plan, which should include 3 years of financial planning such as start-up costs, a break-even analysis, profit and loss estimates, and cash flow
• Appendix, where you can include any related documentation

During this process, you should be thinking about your menu as well. Even if you are limiting yourself to drinks at this stage, there are many bubble tea options to explore. Having a wide range of choices may differentiate you from your competitors and allow you to become more profitable as a business.

Step 6: Getting Your Legal Ducks in Order

Once you have secured financing, you will need to ensure that your business is incorporated. There are many different corporate forms – such as a sole proprietorship, a partnership, a limited liability corporation (LLC), and a corporation. Each corporate form has its own advantages and disadvantages when it comes to liability protection and taxes. You should consult with an attorney to determine how to incorporate and which form is best for your business.

Keep in mind that when you run a business that is open to the public, a lot of different issues can arise – such as a patron slipping and falling on a spilled drink. Incorporating can often protect you from being held personally liable – and it will often be necessary to secure funding for your business. A lawyer can also advise you as to other legal issues that your business may need to address, such as a business license, a federal employer identification number (EIN), and/or a sales tax permit or business number. 

Step 7: Design Your Space

After securing a location and financing, it is time to build out and customize your space. This may involve putting together a floor plan to meet your customer’s needs or getting your logo on the truck. We have a post on the latest design and decor trends in the food service industry if you’d like images to draw inspiration from as part of the design process.

Keep in mind that your space should be aligned with your brand identity. If your brand colors are pink, blue, and gray, for example, then you shouldn’t use yellow and orange in the store.  Making an attractive, comfortable space that is consistent with your brand can help your overall marketing plan – and it will also bring in more customers.

Part of the design process includes setting up your kitchen. Compared to a restaurant, you won’t need as much space or equipment. However, there are certain items that you will need, such as a commercial ice machine, dispensers for sweeteners, or machines to make the tea for your drinks. 

When setting up your kitchen, think about how you will be making and serving drinks. You want your space to be both logical and efficient. Your ingredients and equipment should be stored in a convenient place so that it is as easy as possible to make and serve customers.

Step 8: Source Your Ingredients

At the same time that you are setting up your kitchen, you should start sourcing ingredients and supplies. Because bubble tea has limited ingredients, it is important to buy high-quality teas, milks (including non-dairy options), tapioca pearls, and flavorings. At this stage, you will need to decide whether you will make your boba from scratch or buy pre-made boba. 

Many ingredients for boba, like tea, are shelf-stable, so you can often buy in bulk in advance. Other components – like dairy and fruit add-ins – are perishable. You should set up a plan for how you will order your ingredients and track inventory to ensure that you aren’t reducing your profit margins due to food waste.

Of course, you will need to serve your boba tea in something – along with any food that you sell. You will also need to pick out clear plastic cups , boba straws, sealing film , and lids. While it isn’t strictly required, it is a good idea to buy branded cups and sealing film. After all, bubble tea looks great in pictures – and you want your business name and logo to be in the shot when your customers post their pics on social media. In addition, if you’re going to be selling food, you may also want to buy custom takeout bags to help expand your brand’s reach.

Step 9: Get Permits, Licensing, & Staff Setup

As you get closer to opening up, you will want to make sure that you have the right permits and licenses, and that your employees have been hired and well-trained. Generally, this will include a food handler’s license for at least one staff member. You will also need a certificate of occupancy for the business itself. These requirements vary by jurisdiction, so be sure to check with your lawyer about what permits and licenses you may need to open up shop.

Many bubble tea shops are run exclusively by their owners, given that bubble tea usually isn’t labor-intensive to make and the shops tend to be smaller in size. As your business grows, however, you may want to hire staff to keep up with demand. You should think about whether or not you will need to hire employees, what you will pay them, and how you will train them before you officially open for business.

You will also want to make a decision about using technology to help grow your business, such as an app for ordering, payment tools, or even partnering with a food delivery business . This type of software can also help with things like scheduling employees, payroll, and profit and loss statements. 

Step 10: Put Together Your Marketing Plan

Finally, you will want to begin the process of marketing your business. When you made your business plan, you should have also drafted a marketing strategy. Now is the time to put that plan into action!

First, you should create a website and social media pages for your bubble tea store. Be sure to include your menu, prices, address, hours of operation and pictures of your store and products. Taking these steps will ensure that customers can find you — and may be an important piece of your business’ success. Remember that the target demographic for boba tea trends younger, so consider that when you are choosing which social media platforms to join.

Second, you should consider other forms of marketing, like billboards, signage outside of your store, newspaper or radio ads, mailings, and paid Google ads. Carefully track your spending in this regard so that you can determine which form of marketing is most effective.

Third, using branded promotional products can be particularly helpful for bubble tea shops. Remember: boba tea tends to look really cool, and people like to take pictures of it. Adding your name and logo to the disposable products that you use is a savvy business move, given the likelihood of your drinks ending up on your patron’s social media pages (i.e., free advertising!)

Starting a new business can be overwhelming, but if you break the process down into tiny steps, it becomes much easier to tackle. For further reading, you may also be interested in our resource guide for coffee and tea shops . It includes resources for creating a mission statement, putting together your business plan, picking the right location, gathering required equipment, managing inventory, and more.

Starting a Bubble Tea Shop? We Can Help.

The bubble tea trend is still relatively new in the U.S., with huge potential for growth. If you’re interested in starting a bubble tea business, we can help. Budget Branders offers a full range of custom disposables, priced affordably for start-ups as well as small and medium-sized businesses.

In the past, custom-branded cups, bags, bowls, and other items were only an option for the biggest chains which purchased these items by the millions. We offer a solution for smaller restaurants and bars who want to market their business effectively without breaking the bank.

To learn more about how we can help you build your bubble tea business, contact us today by filling out a contact form , pressing the live chat button, or submitting a quote request for one or more of our products.

The information disclosed above does not constitute legal or financial advice. Use this information at your own discretion and consult a legal or financial professional for further guidance.

David Kranker

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• Business Ideas
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How To Start Bubble Tea Shop Business [PLAN]

• by Olaoluwa
• September 18, 2023 August 28, 2024

BUBBLE TEA SHOP BUSINESS STARTUP GUIDE

This article focuses on bubble tea cafes, providing critical knowledge on how to write a sample plan. With investment opportunities increasing daily, little or no knowledge on writing a good business plan is possessed by entrepreneurs.

It is strongly believed that by following the procedure laid out here, the entrepreneur will have sufficient guidance in writing their unique business plan.

Planning Guide

The planning phase of any business is critical to its proper launch and growth. You’re unlikely to achieve meaningful results without the right actions in place.

More often than not, people face many difficulties writing their plans. This is due to their lack of knowledge of the essential elements.

This boba shop BUSINESS STARTUP GUIDE gives you the needed guidance required. You only need to follow the format provided to overcome common difficulties you’ve faced in the past.

The process of writing a good plan doesn’t have to be complicated, as you’ll find out here.

The Essential Parts of a Plan

The essential parts of any plan are considered the building blocks with which the desired structure is built.

These touch on the most critical aspects of the plan and allow for a better breakdown of essential areas. These elements include the executive summary, as well as the business description.

Other equally essential sections include the products and services, market analysis, strategy & implementation, organization & management team, and the financial plan & projections.

With these sections stated, you’ll need to know what information to include for each of them.

You don’t have to worry, as we’ve discussed below.

Here is how to start a bubble tea shop.

Executive Summary

Products and services, vision statement, mission statement, market analysis/trends, competitive advantage, target market, sales and marketing strategy.

• Sales Projection

Publicity and Advert Strategy

Payment channels.

Set to storm the market beverage and tea markets with the highest quality products, Uncle B’s Bubble Tea Shop will be making available different flavors, each uniquely prepared to satisfy our highly esteemed clients.

With New Orleans as our location, we intend to spread our services to cover the entire state with our premium services in no distant future.

We will be committed to customer satisfaction with a dedicated and well-motivated workforce.

Business Description

Vivid descriptions of who you are, how you operate, and your goals need to be provided here. How do you plan on making a profit? Provide information on the legal structure adopted for your boba shop. A summary of your short and long-term goals will also be necessary.

Give a brief history of your operations. Also, your audience will need to know the nature of the business and the needs and demands it intends to fill. A summary of business growth with financial or market highlights will also be necessary. Give an overview of your products and services and your customers and suppliers.

We at Uncle B’s are driven by a solid vision to be among the top 5 bubble tea destinations in New Orleans within our first three years of commencing business.

Services rendered will be only the best, and we will pamper our clients to make them always return for more of our premium services.

Our mission at Uncle B’s is to provide cost-effective services. We will strike a balance between profits and the best service to our clients.

Hence, while increasing our profit margin, we will also ensure that our products are unique and most preferred among clients.

Uncle B’s will be made available only the very best of products and services; hence, apart from making bubble tea available to our highly esteemed clients, we will be adding other bubble tea-related products to our list of products.

These include syrups, juice and jelly balls, blended teas, smoothie, and slush.

Services include training interested persons in the art of making our products and the sale of bubble tea equipment to our growing clientele.

Organization & Management Team

Your organizational structure is key to how effective your boba shop is run. You’ll need to provide an organizational chart that describes departments and critical employees here.

Also, you must provide information about the owner(s) with details such as names, percentage ownership, and extent of involvement.

Your management team profile will have to be included with names, positions, primary responsibilities, and prior experience.

After much research, we have discovered that the more diverse the flavor variants, the more likely there will be more clients patronizing such services.

Also, there has been a shift in preference for carbonated drinks, with more people becoming health conscious.

It is little wonder that carbonated drink companies have begun shifting ground into non-carbonated drink variants to cater to the health-conscious customer’s needs.

An advantage we have over our competitors is the heavy investment we will be making in researching more bubble tea flavors that will be acceptable to the consuming market.

A product research development will lead this.

Also, we will be motivating our workforce to encourage them to put in their best. Part of the ways we will make this happen is through attractive remuneration packages to spur them.

Our activities will be coordinated by an effective marketing department led by an experienced marketing strategist.

Our target market will be open to all. Still, we will be most interested in society’s most active segment, which includes the army, tourists, the corporate world, students (campuses), chief executives, and health care personnel, among other features of the most active population.

Also, we will be located within the busiest business districts, especially places with high foot traffic.

Our marketing department will be headed by an experienced marketing strategist with years of experience in marketing. Our products will also be promoted through the use of carts, making these products available, especially in busy locations.

The sales and marketing strategies need to be highlighted here with details on costs, pricing, promotions, and distribution.

Explain how you plan on promoting your business to the market. How will your business function? Your labor sources and the number of employees need to be provided.

Financial Plan & Projections

Under the financial plan and projection section, an analysis of financial statements will have to be made with the help of a professional. Here, historical financial data, practical prospective financial information, and data analysis will need to be provided.

With data from research conducted, we will be benefitting from robust growth within this sector; profits accruable to the business will more than double with each financial year.

This is presented in the chart below. However, the predictions made discounts natural disasters and economic recession.

• First Year $220,000
• Second Year $509,000
• Third Year $1,100,000

The publicity and advert strategies to be used are broad-based. They include the use of the internet, involving creating a business website displaying the products and services rendered. Also, we will place adverts on local radio and TV stations to reach the widest audience possible about our services.

We will be printing flyers and banners displaying our services, and also, we will mount billboards in strategic locations showing our services.

The payment channel to be deployed by Uncle B’s includes a wide range of payment solutions enabling clients to pay without going through a lot of stress.

Among the various payment, channels are POS machines, acceptance of credit cards, mobile banking, cash payments, and receipt of cheques, among other payment channels.

This sample bubble tea shop business plan provides a template to follow. However, the information supplied here is only imaginary and represents no genuine business concern.

The entrepreneur is expected to brainstorm what applies to his own business to produce a unique bubble tea shop business plan.

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