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. 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 Sample Bubble Tea Shop Business Plan Template
Table of Content
- 2. Executive Summary
- 5. Job Roles and Responsibilities
- 6. SWOT Analysis
- 7. MARKET ANALYSIS
- 13. Startup Expenditure (Budget)
1. Industry 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.
2. 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.
3. 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
4. Our Mission and 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.
- 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
5. Job 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
6. 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.
7. 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.
8. 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