Bubble tea is a fast-growing market with vast potential. A niche segment of the tea market, it has been growing steadily in popularity with casual tea drinkers and health-conscious consumers. It’s a social affair, and the best way to attract new customers is by operating your business as a tea shop rather than a stand.
Are you looking to get started in the bubble tea business? A good checklist can get you on the right track. Follow this checklist on how to start your own bubble tea business.
What is Bubble Tea?
Bubble tea, often called boba, tapioca pearls, or Taiwanese bubble tea is an Asian drink made from tapioca pearls, milk, flavoring, and often ice. The pearls are either steamed or unfrozen and then served with sweetened or salty toppings. Super popular in China and Taiwan, the drink spread to the United States in the 2000s.
The flavors and ingredients of bubble tea vary widely across Asia, though they also resemble Western milk tea.
It’s often served as an iced tea, blended into a slush, or dumped into a cup and stirred into a milkshake-like concoction.
The Bubble Tea Market
Bubble tea has been growing for several years, with consumption increasing in 2015. In the US, consumption is expected to hit more than 21.5 billion cups this year, up from 16.2 billion cups in 2015. However, the market is still relatively new, having only enjoyed annual growth since 2012.
Consumers drink more than 21 billion bubble tea cups annually, and the drink is famous in Asia and the US.
Rapidly growing and still fairly niche, the bubble tea market is projected to hit more than 25 billion cups by 2024.
Competitors in the Bubble Tea Market
If you want to compete in the bubble tea market, you first have to know how the market works. Bubble tea is a niche segment of the tea market, and it’s still growing.
The market for bubble tea is dominated by large Asian conglomerates that have been investing in the segment for years.
Step-by-Step Guide to Start a Bubble Tea Business
Business strategy and planning are crucial in starting any business.
The first step is to identify your target market and research the relevant details.
Next, develop your product based on the needs of your customers and the preferences of the majority. You can also consider the health benefits of your product.
Then, find a location for your business and get an employment agreement signed by the landlord.
Once you’re set up, start marketing your product using social media, word of mouth, and trade shows.
Over to You
There’s a lot to consider when opening a new business. Thankfully, we’ve got your checklist covered.
Business plan: Your business will fail without a business plan. A business plan lays out your goals and outlines the steps you’ll need to achieve them.
Marketing plan: No one will buy from a business they’ve never heard of. Spend some time researching your target market, and write a marketing plan that explains how you’ll reach them.
Equipment: Invest in the right equipment for your business, including a tea machine, a countertop machine, molds, and bags. Invest in an ice machine, too, if you think you’ll be doing a lot of vending.
Employee training: Make sure your employees are well trained, especially in making delicious drinks and handling customer complaints.
Tips for Bubble Tea Business
Suppose you are planning to start a bubble tea business. In that case, you must understand that it’s a niche market, and the competition is high. You need to be innovative and offer a unique product to capture the market’s attention. Also, you must place your order early to ensure timely delivery.
You can use social media, events, and trade shows to promote your product. You can also create YouTube videos to market your product. You can do this by hiring a video editor or yourself.
Conclusion
Bubble tea is one of the most popular beverages in the world. It is gaining ever-increasing popularity with metropolitans. If you are looking for a new business idea that you can start as soon as possible, bubble tea is the perfect solution. All you need to do is to find a store that sells this beverage near your area, learn how to make and serve it, and you will be ready to start your new business.