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Initial Investment for Milk Tea Business
- To start your own milk tea shop, you will need 30,000 to 100,000 pesos depending on size.
- Franchising packages cost 30,000 to 300,000 pesos.
- Understand your market and staff.
- Register your business.
- Pick a good location.
- Market online and offline.
- Prepare tools and ingredients: blender, shaker, milk powder, etc.
Investment Analysis for Bubble Tea Shop
- Startup costs range from $21,000 to $45,000 for space, rental deposit, ingredients.
- Most owners pay $100,000 to $150,000 to open their bubble tea shop.
- Once open, you can make $1,100,000 or more yearly.
- A Los Angeles bubble tea shop invested $4,000 on furniture plus $500 for delivery and installation.
- Bubble tea costs $3.50 to $7.50 per 16- to 20-ounce serving, averaging $5.
Operational Considerations
- Licenses are considerable expenses when starting any business.
- Invest in proper equipment and quality ingredients.
- Monitoring your balance sheet tracks assets, debts, and solvency.
- A franchise fee of $56,000 and total investment of $299,000 gets a milk tea brand with social media following and proven operations.
Revenue and Profit Projection
- You can earn $44,000 profit in the first year selling 100 bubble teas daily at $6 each.
- As popularity grows to 500 teas daily, annual revenue of $1.1 million brings $220,000 profit.
- As the brand grows, you can sell 500 bubble teas daily and make over $1 million yearly.
Market Trends and Considerations
- Bubble teas gained acceptance in the Philippines.
- A team will open a bubble tea shop in Pangasinan.
- What are initial costs to open a boba shop? They range from $15,000 to $200,000 depending on location, construction, licenses, equipment, ingredients, and staff.
Final Cost Considerations
- Location impacts earnings.
- High foot traffic areas near colleges and offices attract more customers.
- Using quality ingredients enhances taste, drives repeat business, and word-of-mouth.
