Are you about starting a bubble tea shop? If YES, here is a complete sample bubble tea shop business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a bubble tea shop. We also took it further by analyzing and drafting a sample bubble tea shop marketing plan template backed up by actionable guerrilla marketing ideas for bubble tea shops. So let’s proceed to the business planning section.
Why Start a Bubble Tea Shop?
Bubble tea is a tea that is sweet and refreshing and that originated in the early 1980s in Taiwan. There are different names by which bubble tea is known and they are pearl milk tea, boba tea, and Zhen zhu nai cha. Bubble tea is so named because of bubbles that were produced during the shaking process when the tea is being made; also, another reason is its bottom cup which is shaped like a dome. This Asian drink usually has little balls that are squishy – tapioca pearls – in nature and goes through the drinker’s straw.
Going into the bubble tea business requires the entrepreneur to be innovative and creative when mixing blends or thinking up base for the tea. However, as this is not a popular business you will need the help of a business consultant to help you conduct a market research on the viability of this business. It is from the findings of the consultant that will help you determine if the business is worth starting up or if it should remain just a business idea.
After getting positive feedback from your business consultant, you will need to write a business plan for your bubble tea business. A business plan is very important pieces of document that will help you critically know if the business is going to succeed or fail.
The business plan takes into account factors how you intend to market and sell your product, your financial analysis as well as what business structure you intend to have for your company. It is for this reason that a sample bubble tea business plan has been prepared below for you.
A Sample Bubble Tea Shop Business Plan Template
- Business Overview
Even though Americans are regarded as a coffee society, bubble teas are fighting to ensure that they grab the attention of the American and make them switch to drinking bubble teas. The tea which originated from Taiwan in the early 1980s have seen people who are health conscious dump their other drinks for it.
According to a data report collated by Foursquare, the bubble tea business has increased in popularity as more people were visiting bubble tea stores in 2015 to get or drink bubble teas or to buy the ingredients that would enable them make their own bubble teas at home.
However, even though more people are now switching over to bubble tea, it is yet to reach the scale of some giant coffee stores in the United States of America. Coffee chain stores like Starbucks and Dunkin’ Donuts for instance have over 13,000 and 8,000 stores respectively in the United States of America.
There are also existing tea stores in the United States but they sell non-bubble tea and are yet still far behind the coffee stores, this fact makes it hard for bubble tea to grab a strong hold of the market, as the few bubble tea stores do not have a strong brand presence.
According to statistics, Americans are more of a coffee than tea people, drinking 8 fluid oz. of coffee per day, and only one-third of tea. This fact also places bubble tea on an uncertain level, as it would be hard to break the American coffee tradition.
However, this is not to say that all is doom and gloom for bubble tea, as most beverage drinkers point to the fact that bubble teas offer a refreshing variety as it can be a smoothie or a tea. Also, the fact that there is no caffeine in bubble tea makes it a favorite for those who do not want caffeine in their beverages.
In the United States of America, bubble tea stores are mainly located in the West Coast due to the large number of Asian and Asian-American communities. For instance, in most Asian restaurants in Los Angeles, bubble tea products are often on the beverage menus.
Even though, most of bubble tea’s growth are mainly concentrated in few regions, there is still room for growth, especially as the attention of the media has been caught and as well as much is being done on social media platforms to promote bubble tea.
Bubble Tea Shop Business Plan – Executive Summary
Due to the fact that bubble teas have started gaining wide acceptance in the United States of America, we are establishing our bubble tea business so as to offer our various customers quality tea as well the choice of having different flavors. We have our customized truck in place to cater to all our customers in parks, and other public places.
Our bubble tea business is located in a strategic location that is not saturated thereby offering us the opportunity of attracting more customers. Also, we are located in a place that is easy for customers and employees to conveniently have access to.
We have carefully considered our competition here in Mississippi and are rest assured that we would stand out from them due to our quality products and services with affordable pricing and also due to the fact that we have laid down publicity strategies that will be effective in making us stand out once implemented.
Due to the fact that we intend to serve our bubble tea in different varieties and also that we believe in having a professional package, we are therefore investing in specialized bubble tea making equipment such as shakers, sealers, and an electric induction heater. We also have invested in quality small equipment such as stirrers, sugar dispensers, tea jubs and a Point of Sale (POS) Machine.
Even though bubble teas are a specific niche, there are still different flavors that our customers can choose from; this is why we have developed a menu that will accommodate different bubble tea flavors to accommodate any of our customers’ wish.
Because we know how important it is to use only quality equipment in making bubble tea, we intend to source for our ingredients from Taiwan. Our purchasing manager has carried out the necessary research on this and has identified quality suppliers and vendors that fit our budget.
Our employees are the face of the business and so we not will only pick competent employees to help run the business but also be able to communicate the brand effectively to our customers. Also, our employees will be trained on how to make bubble tea that are of Teelicious’ standards.
Teelicious Bubble Tea is owned and operated by two sisters Jackie and Robin Turee. Jackie owns a degree in Business Management, whilst Robin has experience in the beverage industry. Both will be bringing their experience and expertise to bear on the business.
- Our Products and Services
Teelicious Bubble Tea is a tea establishment that deals in all flavors and types of bubble tea. We will sell our bubble tea as a bottled beverage ready-to-drink product. Our bubble tea will be an unusual substitute to traditional tea whilst still providing all the best experience to our different customers.
Teelicious Bubble Tea’s intention is not to make only revenue but also to make sure we have a healthy margin always. Also, we do not intend to sell bubble tea alone as we intend to deal in various products that are associated with bubble teas as well as offer services that are in line with bubble tea and any other bubble tea related business that is permissible under the laws of the United States of America.
Therefore some of the products and services are;
- Different flavors (fruit tea, milk tea) and types (blended, shaken, tea based, smoothie, slush, milk tea or juiced)
- Tapioca pearls
- Jellies and juice balls
- Bubble tea equipment and machinery
- Bubble tea recipes
- Consultancy services
Our Vision Statement
To be the preferred bubble tea store in D’Iberville – Mississippi, and in the whole United States of America; and to also ensure that we never compromise on quality in the making of our products.
- Our Mission Statement
To achieve our vision, we will make sure to always check on what ingredients are used in our bubble teas, and also deal honestly and transparently with our customers.
- Our Business Structure
Teelicious Bubble Tea is a tea company that has been established to make profit as well as favorably compete with its competitors; however, for this to be achieved, we have to ensure that we get our business structure right, as this will go a long way into determining if we will achieve our goals and objectives or not.
Therefore, in getting our foundation right, we intend to get competent and experienced staff that thoroughly understand this business and also have the experience necessary to help us achieve our goals and objectives. The employees we intend to hire must also understand our core values, what we stand for and also be able to communicate this effectively to others as well as to the lower cadre staff.
Due to the fact that we intend to make, sell and serve bubble tea as well as certain ingredients that would be needed for those who intend to make this tea for themselves, we would need several employees assigned to different positions that will cover all the products and services we intend to sell here at Teelicious Bubble Tea.
Below is the business structure that we intend to build at our Teelicious Bubble Tea company;
- Chief Executive Officer
- Quality Assurance manager
- Human Resources and Admin Manager
- Purchasing Manager
- Inventory Manager
- Store Manager
- Marketing and Sales Team
- Customer Service Executives
- Truck Drivers
Roles and Responsibilities
Chief Executive Officer
- Responsible for the overall strategic direction of Teelicious Bubble Tea
- Communicates and ensures the implementation of the vision and objectives of the organization to employees
- Constantly evaluates the success of the organization
Quality Assurance manager
- Ensures that the bubble tea prepared has passed hygienic conditions
- Ensures that low quality ingredients are not bought and used to make bubble tea on behalf of the organization
- Ensure that our standards are not lowered for any bubble tea produced.
Human Resources and Admin Manager
- Ensures that all the departments in the organization runs smoothly
- Conducts recruitment and orientation for new employees
- Responsible for carrying our performance appraisals on employees
- Sources for reliable suppliers and vendors of bubble tea ingredients on behalf of Teelicious Bubble Tea
- Prepares and reviews supplier contracts for any loopholes.
- Liaises with the accountant especially during the budget preparation to ensure that accurate figures are used
- In charge of preparing the financial reports and statements on behalf of the organization
- Responsible for administering payrolls to employees working in Teelicious Bubble Tea
- Prepares and submit accurate tax documents on behalf of the organization
- In charge of back room bubble tea ingredients storage
- Secures supplies and makes sure ingredients taken are recorded and accounted for
- Liaises with purchasing manager as to what is needed in the store
- Ensures that there is adequate supply of bubble tea base and other ingredients for customers
- Ensures that the store is well ventilated and conducive enough for employees and customers
- Ensures that the store is well secured at all times
Marketing and Sales Team
- In charge of conducting marketing research on how best to retain and attract customers
- Carries out retail services on behalf of the organization
- Places adverts on print, electronic and social media on behalf of Teelicious Bubble Tea
Customer Service Executives
- In charge of answering inquiries and also noting complaints of customers and ensuring that they are promptly dealt with
- Keeps and update accurate customer database
- Consistently update knowledge on new information, recipes and technology used in the company as well as the industry as a whole.
- In charge of selling our bubble tea to customers in public places
- Ensures that the vehicle is kept clean always
- Carries out light maintenance on the truck and report major problems to the Admin Manager
- Ensure that the bubble tea store are kept clean always
- Ensures that the conveniences are kept clean for both employees and customers
- Ensure that there are adequate cleaning supplies and replenish depleted supplies
Bubble Tea Shop Business Plan – SWOT Analysis
The bubble tea business is a great business concept that will see us creating a niche and become recognized in the market. However, due to the fact that we pride ourselves on professionalism, we have decided to hire a business consultant to critically look at our business concept and let us know if we have any chances of survival in this business.
The business consultant intends to use the SWOT (Strength, Weakness, Opportunities and Threats) analysis to determine what we were likely to go through in the course of starting and running the bubble tea business in Mississippi. Below is the result that was gotten from the analysis that was conducted on Teelicious Bubble Tea;
There are several strengths which we possess and which will be beneficial to our bubble tea business. First off, we have a strong distribution channel which will ensure that our bubble tea penetrates and is in reach of our customers who are far away.
Secondly, we have employed efficient and competent employees who understand the beverage market and know what it will take to take us to the top. Also, our owners who have the required experience needed to ensure that we become the brand we intend to be.
Our weaknesses stem from the fact that this is not a known segment and so there will be more difficulty breaking into this market and attracting the needed customers especially from the carbonated drinks share market. Also, we would be battling with other healthy drinks in the market in order to create an identity and stand out.
We have several opportunities that are available to us and they abound in the fact that we intend to continually introduce new products and innovations. Also, we are building a brand that we want to ensure is attractive to global investors and partners.
Due to the fact that every business experiences threats, we expect to experience strong competition from new competition in same location or around us. Also, we also expect issues such as people claiming to have health issues from taking our product. Regardless of the threats we are going to face, we are optimistic that we would come out tops as we have laid down strategies to ensure we are proactive to these issues.
Bubble Tea Shop Business Plan – MARKET ANALYSIS
- Market Trends
More people are now health conscious and so there are less people going for carbonated drinks and more people going for healthy alternatives such as smoothies, milk and fresh fruit juices. This has caused more already established carbonated drink companies to go into the production of these healthy alternatives so as to maintain a share of the target market.
Even though this trend barely touches the bubble tea market but anyone in this business will need to be proactive as regards researching new flavors and types that will excite the existing customers while attracting new customers to patronize the business.
Another trend in the bubble tea business is the fact that most bubble tea businesses have gone beyond just making and selling bubble teas to customers, but they have also come up with recipes and DIYs for customers who would want to make these bubble teas for themselves at home.
Also, to garner more publicity for bubble tea, most bubble tea stores have gone beyond selling these tea in basic stores but have ensured that the tea is now sold via van to people in the parks and in other public places, this has raised awareness for bubble tea.
The fact that we are living in an internet age has a great impact on any business particularly the bubble tea business. The website is a good place to advertise and promote bubble tea, as well as social media platforms such as Instagram, Facebook, and Twitter. Also, there are now mobile apps that will allow customers know when there is a new recipe, and also provide tips and advice and even information regarding bubble tea.
- Our Target Market
As more people are getting increasingly aware of what they take in and are conscious about their health, more people are shifting towards healthy drinks and bubble tea is one of them. This means that there is a huge target market waiting to be grabbed.
This is not a drink that can be limited to just a certain age range, as it can be taken by almost everyone. Our strategic location in Mississippi has ensured that we are favorably close to several of our target markets.
We however conducted a market research that would allow us make informed marketing strategies when intending to get our share of the target market. The market research would help us define our target market by demographics and psychographics.
Therefore, we are going to be selling our bubble tea and its allied products or services to the following group of people;
- Young professionals
- Corporate Executives
- Business people
- Sports men and women
- Young adults
Our Competitive Advantage
Our aim of starting Teelicious Bubble Tea is to ensure that we are the preferred bubble tea business in Mississippi and in the whole of the United States of America. We have our set strategies that will ensure that we can not only make our intended profit but also that we can favorably compete with our competitors.
It is for these reasons that we have drafted several competitive advantages that will enable us remain unique and also set us apart from other bubble tea competitors.
Our first competitive advantage is to ensure that our bubble tea truck gets customized with a vending machine as this will allow us have prepared bases in place and also serve our customers in public places without wasting their time. Our truck will also be well equipped with POS Machines for those who do not have cash on hand to pay.
Another competitive advantage we have is the fact that we are constantly churning out new recipes that will create different flavors and type of the bubble tea. We want our customers to remain intrigued with the different flavors that we have to offer. Asides, from the different flavors we intend to offer, we also intend to ensure that the ingredients used in making our bubble tea are of top quality.
Another competitive advantage we have is our excellent customer service which we offer to all our customers. We know how important having loyal customers are to a business and so through our strategy, we intend to retain more than 80% of our customers while also aiming to attract new ones through our publicity and advertising strategies.
Finally, we have the best employees that are not only experienced but competent as well. We intend to make sure that our employees are not only paid adequately but that they also undergo continuous training that will ensure that their skills are enhanced.
Bubble Tea Shop Business Plan – SALES AND MARKETING STRATEGY
- Sources of Income
Teelicious Bubble Tea is a bubble tea store that has been established to make different flavors of bubble tea for our various customers and also to ensure that revenue is made and profit maximized from the different products we intend to make for our customers.
Teelicious Bubble Tea therefore intends to generate income by selling the following products to its customers;
- Different flavors (fruit tea, milk tea) and types (blended, shaken, tea based, smoothie, slush, milk tea or juiced)
- Tapioca pearls
- Jellies and juice balls
- Bubble tea equipment and machinery
- Bubble tea recipes
- Consultancy services
The fact that people are now being conscious about what they drink is a testament to the fact that the demand for bubble tea is about to surge better than before.
This is why our offering of quality bubble tea, our different flavors as well as our positioning in the market has made us quite optimistic that we would not only generate enough revenue but that we would meet up with our target within a year of running our bubble tea business.
Having looked critically at the beverage industry, we have seen that the bubble tea is a great niche for us to go into and having analyzed our chances with the help of a reputable business consultant here in Mississippi, we are quite certain that we will not only grow but thrive in this market.
Our business consultant gathered data and information from the field to help us arrive at the following sales projections below. The assumptions are based on certain factors such as location and type of business. Below is the sales projection prepared on behalf of Teelicious Bubble Tea:
- First Fiscal Year-: $300,000
- Second Fiscal Year-: $600,000
- Third Fiscal Year-: $1,200.000
N.B: The above projections were done based on several assumptions as regards location and also what is obtainable in the industry. Some of the assumptions used in carrying out these projections were based on the fact that there won’t be any major economic downturn and that also there won’t be any arrival of a new competitor between the periods of projections.
Any change in these assumptions would likely lead to a change that could be either cause the sales projections to be higher or lower than the stated figures.
- Marketing Strategy and Sales Strategy
Deciding our marketing and sales strategy is very important to us as we understand that without marketing we will be unable to sustain the business and grow it to the level that we intend. Due to the importance of marketing and sales, we intend to conduct a thorough marketing analysis that will enable us understand the market we intend going into and the best way to penetrate.
Asides from helping us understand our target market, the marketing research would also help us better structure our business so as to be able to be proactive whilst dealing with our customers and their varying demands. Having the right marketing strategy would also help set us apart from our competitors and also allow us to favorably compete with them.
Not getting the marketing strategies right could lead to a lot of customers leaving and potential ones not willing to come in and so we have engaged the services of a reputable marketing consultant who not only understands the beverage market but is also knowledgeable on what to do to enable us have the customers that we might need for our bubble tea business.
The marketing consultant will work together with our marketing and sales team to ensure that all strategies drafted are effectively implemented as well as in accordance with our core values as a company. We also will not neglect the internet as a means to market our products and services at Teelicious Bubble Tea because we are aware of the wide reaching effect the internet has.
Therefore, the marketing and sales strategies that we intend to adopt for Teelicious Bubble Tea are;
- Ensure that we roll out massive advertisements in local newspapers, magazines as well as on radio and television – that will allow us become noticed
- Throw a grand launching party for Teelicious bubble tea that will get us noticed
- Ensure that our business is listed in offline and online directories
- Engage in direct marketing and sales
- Leverage on our social media platform – Facebook, Twitter, Instagram – to ensure that we thoroughly advertise our products and services
- Encourage our customers through discounts and incentives to refer us to others
Bubble Tea Shop Business Plan – Publicity and Advertising Strategy
The aim of conducting publicity or advertising for Teelicious Bubble Tea is to create customer awareness for our bubble tea and their related products, while also ensuring that we establish a brand that will become a top market leader in this segment of the industry. We therefore intend to explore every means of promoting Teelicious Bubble Tea to our customers – existing and potential.
Because we want very strong publicity and advertising strategies for our brand, we intend to engage the services of a top consultant here in Mississippi who has the reputation and experience that will be necessary for the growth of Teelicious Bubble Tea.
Our aim is to ensure that we are not only known in Mississippi but in the surrounding states and eventually in the whole of the United States of America. Therefore some of the platforms we intend to use in promoting Teelicious Bubble Tea are;
- Sponsor relevant health-related programs in the community
- Ensure that we place adverts in local newspapers and magazines as well as on radio and television stations
- Create a unique logo and place them on all our bottles, trucks, tee shirts and official vehicles
- Visit other blogs and forums to ensure that we engage in discussions about bubble tea thereby educating more people and increasing awareness
- Make use of our social media platforms like Facebook, Instagram and Twitter to reach out and engage our audience
- Distribute our fliers in target locations
- Attend fairs and carnivals in order to sell and promote our products
- Install billboards in strategic locations around and outside Mississippi
Our Pricing Strategy
When it comes to setting a price for a product, several considerations are taken such as the quality of the product, how much it took to produce the product and the running expenses incurred in the process of producing the product. There are variant powders and syrups that are used for bubble tea that are of different quality, and so the higher the quality of ingredients used, the higher the price would be.
Because we get most of our products from Taiwan, we also have to factor in shipping costs when setting the price for our bubble teas or the ingredients used in making the tea. We however would like to assure our customers that we intend to ensure that our bubble teas are very affordable and pocket friendly.
Also, in the first two months of business, we would give our customers a discount when they purchase our tea as this we believe will be a way of attracting more customers to our business.
- Payment Options
Because we understand that our customers will want to have access to different payment options when they purchase from us at Teelicious Bubble Tea, we have come up with different payment platforms to accommodate all our various customers.
Therefore the payment options that will be made available to all our customers for any of our products and in any of our outlets are;
- Payment via cash
- Payment via check
- Payment via credit card
- Payment via Point of Sale (POS) Machine
- Payment via PayPal
The above payment options were carefully chosen for us by our bank after a careful consideration on our kind of business, and will work with no hitches for any of our customers.
- Start – Up Expenditure (Budget)
Every business needs start-up capital to be able to use in financing some aspects of the business till the business is able to sustain itself, and make profit. Therefore for our bubble tea business, we intend to spend most of our capital to stock up on raw materials, get a truck as well as pay our employees and the bills we might incur during certain points of running the business,
The key areas we therefore intend to spend our start-up capital on are;
- Business registration and incorporation – $700
- Obtaining licenses and permits as well as accounting software and other legal expenses – $1,800
- Cost of purchasing the raw ingredients (powder, syrup, tapioca pearls) – $30,000
- Cost of packaging (bottles and labels) – $10,000
- Cost of hiring business consultants – $5,000
- Insurance coverage (general liability and workers’ compensation) – $2,500
- Operational cost for the first three months (utility bills and employees salaries) – $120,000
- Other start-up expenses (furniture, stationery, computers, phones, and printers) – $2,500
- Marketing promotion (grand opening promotion and general business promotion) – $7,000
- Bubble tea making equipment – $15,000
- Cost of storage equipment and hardware (shelves, racks, bins, cash register, security gadgets) – $15,000
- Cost of purchasing a fairly used van – $30,000
- Cost of launching a website – $500
- Cost of throwing a bubble tea launch party – $5,000
- Miscellaneous – $5,000
From the above report, we would need an estimated amount of $250,000 to be able to start and successfully run our bubble tea business here in Mississippi. The amount basically covers our employees’ salaries and utility bills for a period of three months. It also covers overhead expenses such as bubble tea making equipment.
Generating Funding / Startup Capital for Teelicious Bubble Tea Business
Teelicious Bubble Tea is a family business run by two sisters, Jackie and Robin Turee. We want the business to be in the family and for that reason we have decided against going for external investors that might want to become partners with us during the course of generating capital.
We have therefore decided to limit our sources of capital to just this four sources. Below are the sources we intend to generate capital from;
- Personal savings
- Soft loans from friends
- Loan from Small Business Administration (SBA) Agency
- Loan from bank
N.B: From our personal savings, we were able to generate the sum of $20,000. We got the amount of $20,000 as soft loans from friends. We approached the SBA for a little that was approved for us to the tune of $60,000. We also have approached our bank for a loan of $150,000 and have submitted the necessary documentation and have been assured that our application will soon be approved; after all necessary documents have been checked.
Bubble Tea Shop Business Plan – Sustainability and Expansion Strategy
The aim of every business is so as to make enough revenue and eventually profit that will sustain the business throughout its lifecycle. To achieve this, certain factors such as having competent employees, minimizing cost and re-investment of profit as well as having loyal customers is very essential.
Not employing the right staff can be detrimental to one’s business, because not only will the staff not understand what it is the company wants to achieve but they will also not be able to meet up to the productivity quota that the company requires.
It is for this reason that we intend to employ only employees that are competent and also understand what we stand for as a company. We will ensure that our employees are adequately compensated both intrinsically and extrinsically.
As we continue to produce quality bubble tea for our customers, we know that overtime our running costs will be reduced a bit, allowing us to minimize cost and maximize on our profit, which we intend to re-invest back into the company so as to boost its bottom line, ensuring that we remain in business for a long time to come.
Finally, our customers are very important to us for without them, we wouldn’t be in existence, and so we are ready to listen to our customers’ feedback and complaints and ensure that they are promptly attended to. We also intend to ensure that our loyal customers are effectively rewarded with discounts and other incentives especially when they refer other customers to us.
Check List / Milestone
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party / launching party planning: In Progress
- Establishing business relationship with vendors – wholesale suppliers / merchants: In Progress
- Purchase of trucks: Completed