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Opening a bubble tea shop is an opportunity to earn at least hundreds of millions of dong each year, but it requires you to prepare some things such as: capital, location, raw materials. Especially, expertise and strategy are two determining factors for success in this beverage business. Let’s find out what is needed to open a bubble tea shop and how much capital is needed in the following article with Kamereo!
Step 1: Identify target customers
First, you need to research the market to identify target customers. This determines 99% of the future success of the bubble tea shop. Accordingly, you need to understand who your target customers are to have a suitable development direction. When you want to open a bubble tea shop, potential customers are often classified as follows:
- Students: Bubble tea is a popular snack with affordable prices in the lives of young people today. This group usually goes in groups and accounts for about 70% of your total customers.
- Couples and families: Accounting for about 30% of the customer base, they usually visit the shop in the evenings and on holidays. Therefore, preparing raw materials ready to serve a large number of customers in this period is very important.
Identifying target customers does not mean that you will refuse to serve other groups. Instead, you can be flexible in decorating the shop, applying the most suitable recipes for them.
Step 2. Prepare capital to open a shop
Capital always plays the most important role in the process of preparing to open a shop. So, how much capital is needed to open a bubble tea shop? You should list in detail the tasks or materials needed to avoid mistakes. From there, you can determine the estimated amount of investment and distribute it to appropriate expenses. The total capital for opening a shop usually ranges from 200 – 500 million dong, depending on the scale of the shop.
In addition, you should prepare a reserve fund to maintain the operation of the shop in the initial period. Because this period requires quite a lot of expenditure for activities to attract customers through promotional programs until the shop stabilizes. Therefore, make sure you have prepared financially to face the challenges that will be encountered in the future.
Step 3: Build the menu
Many people often make mistakes in designing the menu after opening a bubble tea shop. Here are the reasons why you should do this from the beginning:
- Customers have a good impression from the start, increasing the chance of returning next time.
- There is plenty of time to study, change the menu to meet the needs of customers.
- Flexible in finding ingredients to serve beverage preparation.
A quality shop menu should be organized into specific drink groups and offer many choices for customers. The menu should be diverse in flavors and include popular drinks as well as various toppings.
In addition, you should participate in a bartending course as soon as you intend to open a bubble tea shop. This helps you have enough knowledge to choose which drinks should be on the menu and establish necessary relationships for the shop opening to go smoothly.
Step 4: Find a location for the shop
After identifying the target customers in step 1, look for a suitable location based on the following criteria:
- Nearby elementary, middle, high schools, and universities in the province/city.
- Located in densely populated areas such as residential areas, apartment buildings, etc.
- Near or inside large recreational and entertainment areas in the area.
You can rent old premises that have stopped operating for renovation. However, you need to understand the reasons why they failed to avoid repeating the mistakes of the previous shop owner. If you cannot find an ideal location with reasonable rent, areas with fewer competitors are also a good choice. Just make sure that the location has enough potential customers who frequently visit.
Step 5: Develop a shop concept
After finding a location, start looking for design ideas and building your own bubble tea shop. Currently, there are two popular brand-building forms including:
Franchise
Currently, many famous bubble tea chains operate under a franchise model such as Dingtea, Gongcha, KOI, Chago,… This form has many advantages as you can use the name of a famous brand, making business easier. Besides, you also receive support from the chain to ensure the quality of drinks according to a certain standard.
However, franchising often requires a large initial investment. The amount required to use the brand and buy the formula usually ranges from several hundred million to several billion dong, depending on the brand value. In addition, the franchise model is only suitable for large cities. While districts or suburbs of cities are not very favorable due to the relatively high prices of each bubble tea.
Building your own brand
Building your own brand gives you autonomy in business operations and helps save investment capital for brand maintenance fees. Instead, you only need to spend about 5 million dong to design a brand identity. As for the drink formula, you can learn from attending a reputable bartending course with a tuition fee of about 4 million dong.
However, you will encounter more difficulties in building your own brand. The most important thing is to base it on the characteristics of potential customers. If your target audience is students, then the design should be youthful and colorful. Conversely, if you target couples or families, creating a cozy and romantic space will attract them much more.
Step 6: Design and construct the bubble tea shop
During the design process to open a bubble tea shop, you can refer to ideas on the internet such as: Google image search, Pinterest, iStock, Canva,… After shaping the ideas, the next step is to materialize them on the blueprint.
If you don’t have experience in the design field, hiring a professional firm is the best choice. The price is usually calculated based on the area, ranging from a minimum of 200,000 VND/m2. Once you have a design plan, you can proceed with construction, but remember to supervise regularly to minimize errors during construction.
Step 7: Purchase machinery and equipment
Using machinery and equipment in the bubble tea business helps optimize time and beverage quality. However, you should only buy products that are truly necessary to limit costs in the initial stage. Below are some machinery and equipment that you should invest in:
- Sealing machine: There are two types, automatic and manual, depending on your usage needs. The maximum investment for this machine is about 12 million dong, depending on the model and machine condition.
- Tea brewing pot: This is an essential device for the best tea preservation. Each tea brewing pot usually has a capacity of about 12 liters and costs from 6 – 9 million dong. You should prepare at least 2 tea brewing pots to ensure a continuous supply of tea for the shop.
- Blending machine: Helps mix tea with fruit, creating a rich and attractive flavor. This machine costs about 3 – 6 million dong. However, you should consider carefully because not all types of tea need blending.
In addition, you also need to buy other small equipment such as measuring spoons, strainers, and special tools for making pearls.
Step 8: Source Ingredients
After planning the purchase of machinery and equipment for the shop, the ingredient part cannot be underestimated. This is a decisive factor for the success of delicious bubble teas that attract customers. Below are indispensable ingredients when opening a bubble tea shop:
- Tea: You should choose tea with distinctive flavors to differentiate yourself from competitors in the market. Additionally, you can import various types of tea to enrich your menu.
- Flavorings: Milk tea powder, syrups, sugar water, etc.
- Toppings: Toppings determine up to 50% of the success of bubble teas. Popular toppings include black and white pearls, jelly, fruit jelly, coconut jelly, red beans, etc.
If you haven’t found a reputable ingredient supplier yet, consider products from Kamereo. With many years of experience supplying food to restaurants and beverage shops in Ho Chi Minh City and Binh Duong, we pride ourselves on bringing the best initial values for your business.
Read more: Introduction to Kamereo
Currently, Kamereo offers delivery support for invoices of at least 400,000 VND. In particular, if your monthly invoice total is over 20 million VND, you’ll receive a refund of up to 1%. Contact Kamereo via hotline 0812 46 37 27 to get advice and support from specialists in placing orders.
Step 9: Complete Legal Procedures
Completing all legal procedures is a fundamental step to ensure the smooth and legal operation of your bubble tea shop. If you lack experience in business registration, seek advice from a lawyer for effective support.
Step 10: Build a team of employees
The number of employees needed to open a bubble tea shop depends on the scale and location. However, at least one shop manager, one accountant, and one shopkeeper are required. Besides, you need to hire some staff for marketing, customer care, and cleaning. Make sure your employees are well trained before the shop opens.
Step 11: Grand Opening of the Bubble Tea Shop
After completing the aforementioned steps, your bubble tea shop is ready for the grand opening. Choose a auspicious day for the opening process to be smooth, avoiding any mishaps. Additionally, you should plan to decorate the shop before the opening day and develop some special promotional programs to attract customers.
The grand opening marks the most crucial turning point in determining the success of the shop. If the shop attracts a significant number of customers from this stage, combined with delicious drinks and excellent customer service, you will maintain a stable customer base in the future.
Step 12: Develop a marketing plan
When opening a bubble tea shop, it is important to have a marketing plan to attract customers. You can apply many forms of marketing such as online marketing, print advertising, customer referral programs, discounts, etc. to reach potential customers. Remember to constantly update and change your marketing strategy to suit the market situation.
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Hopefully, through this article, you can find answers to what you need to open a bubble tea shop and detailed steps to implement. Although the competition rate is high, the beverage market is still a lucrative opportunity for those who are truly different and meticulous. Follow the Business Tips section to keep up with the latest useful information.
