How much does it cost to open a bubble tea shop?

loving to see the sweet taste of drinks bring smiles to people's faces, but not know how much budget is needed to open a bubble tea shop. don't know where to start? I'll organize some common types of bubble tea shops to help you complete your business plan.

In modern life, drinking bubble tea or other drinks is a relaxing and enjoyable thing.
A cup of hot coffee starts a wonderful morning.
A cup of green tea to relieve the greasy feeling of lunch.
Enjoy a cup of bubble tea with an afternoon snack.
Paired with a variety of toppings, it’s even more mouth-watering!
Especially its bubble milk tea, which has won praise from all over the world.
Beverages are closely related to our lives.
So how much does it cost to open a bubble tea shop?
Let Fokus Inc. take you into the world of bubble tea.

Here are some different styles of Bubble Tea shops for your reference：

1. Starting with USD$20K, a simple small stall can start a business!

Starting a business is a dream for many people, and there are many ways to do it. We’re glad you took this step!

In a common situation, the costs include：

1. A Small stall, mobility allows you to reach more new customers.


2. Tea buckets (3-4 buckets for different drinks), and utensils such as shaker, tapioca scoop, powder scoop, tea strainer, etc.


3. Bubble Tea Raw materials (such as syrups, cooked toppings, bubble tea flavor powder, and cooked tea: Black tea, Green tea, White gourd tea, Oolong Tea), Raw materials account for about 10-20% of total cost. And usually get from local distributor.

The advantages are：

Low cost, Simple menu, fewer materials to prepare and High replicability (easy to franchise). Also, a shorter menu brings less inventory and high flexibility, about 20 items, allowing you to frequently update your menu to follow trends.

It’s a relatively easy type of bubble tea shop to start with.
There are many stores like this in Taiwan. Many of them started at night markets, and many have expanded their operations through franchising.

2. Starting with USD$50K, a wide range drinks selection of to-go bubble tea shop!

Bigger shop with wider selection of drinks. A fixed To-go-only shop is the most common type of bubble tea shop.
At this moment, we are not only selling drinks, but also services.

The costs contain：

1. Store rental fee (depends on shop’s size/area and in which country, Generally, it will be around 256 square feet for a to-go shop)


2. Bubble Tea Equipment (topping cooker, tea brewer, blender, shaker machine, tea buckets, sealing machine, refrigerator) POS machine or Kiosk to prepare drinks.


3. Bubble Tea Raw materials: Bubble tea flavor powers, Toppings, Tea, Smoothies, Juice, Coffee, special drinks


4. Labor costs, at least three staffs shift for cashier, cooking, preparing drinks.


5. Utility bills, depends on your shop’s size, Meanwhile, owning your own storefront means incurring high Utility fee.

If your store has an arcade, it can protect customers from the sun and rain.
You could also place 2-3 chairs next to it for waiting customers to sit.
Interesting case sharing, our customer in Philippine shared that they do not provide free Wi-Fi and sockets for consumers to use. Because it may cause them stay for a while!

Although a storefront significantly increases cost, it also has clear advantages. Having a larger storage space allows for larger order quantities, which can result in lower unit prices. Having a comfortable space allows you to better prepare drinks and develop a larger menu, meanwhile, a fixed location gives you a base of regular customers.

Additionally, some extra costs like taxes and the fee related to getting permits will need to be taken into account.

3. Starting with USD$150K, a comprehensive bubble tea shop with meals and seats!

It’s very important that you want your shop to match the meal with the drink or the drink with the meal. Usually serves snake like donuts, bread, desserts or fried foods.

The costs contain：

1. Store rental fee, depends on shop’s size and in which country, due to the seat so the space must be bigger enough, Furniture is another big cost at initially, choose one that fits your shop’s style.


2. Bubble Tea Equipment (topping cooker, tea cooker, blender, shaker machine, tea buckets, sealing machine, refrigerator) but also other machines for making meals like waffle maker and fryer.


3. Bubble Tea Raw materials: Bubble Tea flavor powders, Toppings, Tea, Smoothies, Juice, Coffee, some special drinks/ materials for meals like waffle powder or flour.


4. Labor costs, in addition to the original store clerk, there are also chefs and waiters/waitresses who need to prepare and deliver meals.


5. Decoration, renovation, branding design fees such as Bright signs.


6. Utility bills (depends on your shop’s size)


7. Boba academy(drinks and meals preparation, customer service)


8. Social media management & advertising (improving brand awareness is very important)

We also have a Vietnamese customer who opened a bubble tea shop in the U.S. They pair bubble tea with Vietnamese pho and completely create a new style of their own!

Fun facts, equipment is important to produce bubble tea.
Our customers bought a sink from us and wanted to install for their store in Australia. At that moment, the machines had arrived, but they could not be installed. The reason was that the voltage spec was different, and there were safety concerns about the risk of fire for vendors installing them in department stores. Therefore, we would also like to remind you of relevant regulations and laws!

4. Starting with USD$300K, a distinguished restaurant with bubble tea!

This type of store not only requires food and drink quality, providing a comfortable space and cozy vibe for customers is the main mission in this stage, this also means you could increase the unit price of your products and aim for a more premium market.
The cost of opening this style of store, in addition to all the items mentioned above. There are more special things that maybe can give you more ideas!
Brand uniqueness：

1. Provide menus in multiple languages, it doesn’t matter where do your customers come.


2. Special event: Customers participate in the process of making drinks, drinking more safely and increasing connectivity.


3. All flowers in the store insist on using real flowers, showing 100% sincerity. If a store is completed with the utmost caution from decoration to small ore, it will naturally not be too casual when it comes to ingredients.

remember, light plays a key in creating the ambiance, you could hire a professional designer to help with.

Running a business is not easy. No matter the scale is small or large, there are points that need to be carefully considered. Budget has always been the first consideration. Subsequent operations also require constant modification and adjustment in the process to find the most suitable method.
Always keep your faith no matter what happens!
Just focus well on what you’re planning, Fokus will be here with you.