1. Home
  2. News
  3. Q & A
  4. How to Start a Bubble Tea Business in 2025
Q & A

How to Start a Bubble Tea Business in 2025

share
2025-04-21
Q & A

Bubble tea started in Taiwan and has become immensely popular around the world. Its appeal is growing, especially in Western countries. Customers increasingly enjoy bubble tea's unique flavors and textures, making it a sought-after beverage choice.
Its rising popularity allows entrepreneurs to tap into a trendy market. To start a bubble tea business, our guide provides a clear plan. It covers everything from the idea to the grand opening.


1. Conduct Market Research

Before launching your bubble tea shop, it’s essential to evaluate the local market. This includes identifying customer demand and analyzing the competitive landscape. Use tools like Google Trends, SEMrush, and food delivery platforms to research:

  • Areas with high search interest in “bubble tea near me”

  • Density of existing stores (independent vs. franchise)

  • Target demographics such as students and young professionals

Tip: Urban areas with a high concentration of Gen Z and Millennials are ideal locations. These groups are highly active on social media and often gravitate toward visually appealing beverages.

2. Choose the Right Location

Location is a key factor in the success of any retail food business. According to data from WebstaurantStore, the most successful bubble tea shops are found in:

  • High-foot-traffic areas (e.g., shopping malls, universities, busy streets)

  • Spaces between 500–1,500 sq. ft., suitable for compact operations

  • Areas near complementary businesses like dessert shops, coworking cafés, or Asian restaurants

Tip: Rent usually accounts for 10–20% of your total monthly operating cost. A small kiosk or shared retail space can help lower your startup budget while maintaining visibility.

3. Plan Your Menu and Pricing Strategy

Your menu is one of the most important marketing tools. Popular bubble tea offerings include:

  • Classic milk tea with tapioca pearls

  • Fruit teas with lychee or mango popping boba

  • Flavored milk teas such as taro, matcha, or brown sugar

  • Seasonal specials to drive repeat visits

To ensure profitability, keep your cost of goods sold (COGS) under 30% of the drink price.
Example: If a mango bubble tea costs $0.80 to make, pricing it at $2.80–$3.50 helps maintain a strong margin.

4. Source High-Quality Ingredients and Equipment

The quality of your ingredients and reliability of your equipment will directly impact flavor consistency and operational efficiency. You’ll need:

  • Tea leaves or powders (black, jasmine, oolong, matcha)

  • Tapioca pearls, fruit syrups, popping boba, and jellies

  • Equipment like sealing machines, shakers, blenders, and cup dispensers

  • Commercial refrigerators and hot water dispensers

Pro Insight: Many successful businesses work with export-ready suppliers from Taiwan, the birthplace of bubble tea, to ensure authentic flavors and stable sourcing.

5. Calculate Your Startup Costs

Understanding your initial investment is crucial. Below is a typical cost breakdown:


Expense Estimated Cost (USD)
Lease & Renovation $10,000 – $30,000
Equipment & Machinery $5,000 – $15,000
Ingredients & Packaging $3,000 – $8,000
Licenses & Permits $500 – $2,000
Marketing & Branding $1,000 – $5,000
Total Estimated Cost $20,000 – $60,000

Low-budget options: Kiosk models or ghost kitchens can start from $15,000, while a full dine-in location in a Tier 1 city may require upwards of $100,000.

6. Register Your Business and Get Licensed

To operate legally, you’ll need to complete the following steps (specifics may vary by region):

  • Register your business (e.g., LLC, Sole Proprietor)

  • Obtain health department permits

  • Complete food handler certification

  • Register for sales tax

Always check with your local small business bureau or government agency to ensure compliance.

7. Launch with a Strong Marketing Plan

Marketing is key to driving awareness and traffic to your store. Effective strategies include:

  • Instagram and TikTok campaigns featuring visually attractive drinks

  • Google Business Profile and Maps SEO to improve local visibility

  • Loyalty programs and seasonal promotions to increase customer retention

  • Listing on food delivery platforms (e.g., UberEats, DoorDash)

Case Study: Businesses with an optimized Google listing receive 5x more views and up to 70% more walk-ins, according to recent studies.

8. Optimize Operations for Growth

Once your store is up and running, focus on building a scalable system:

  • Standardize operating procedures (SOPs) for drinks and service

  • Track inventory turnover and minimize waste

  • Train staff for consistency and customer service excellence

  • Evaluate opportunities for franchising or opening a second location

Ready to Launch Your Bubble Tea Business?

Partner with a trusted supplier of premium bubble tea ingredients from Taiwan—including tapioca, flavored powders, teas, and toppings. Whether you’re launching your first shop or expanding into new markets, we offer:

  • Global logistics support

  • Custom ingredient solutions

  • Industry consultation

Contact Us Now for a Custom Quote


Back to List