The beverage bubble tea, commonly known as boba tea, has gained popularity all over the world. It began in Taiwan in the 1980s and has since expanded to several locations throughout the globe. Due to its distinctive flavor and texture, it has won over many fans and grown in popularity among both children and adults. Numerous businesspeople are thinking about starting a bubble tea franchise because of its popularity. How much does it really cost to run a bubble tea franchise, though?
Owning a bubble tea franchise can be expensive, depending on a number of variables. One of the major costs associated with owning a franchise is the franchise fee. Depending on the brand and the services offered, the franchise fee might range from $10,000 to $50,000. The use of the brand name, training, and continuous assistance from the franchisor are all included in this cost. A royalty charge, which is often a percentage of monthly sales, is another expense the franchisee must cover.
The cost of the equipment, inventory, and store setup are additional expenses that the franchisee must pay in addition to the franchise fee. Blenders, tea brewers, and dispensers are among the appliances utilized in a bubble tea establishment. Depending on the size of the store and the equipment required, the price of the equipment might be anywhere between $10,000 and $30,000. Tea leaves, tapioca pearls, and other ingredients required to brew bubble tea are included in the inventory. Depending on the size and location of the store, the cost of inventory can be anywhere between $5,000 and $10,000.
Due to the tapioca pearls used in the beverage, bubble tea is also referred to as boba tea in Taiwan. Due to the beverage’s success in Taiwan, numerous bubble tea franchises, notably Coco Milk Tea, have opened. With more than 4,000 locations across 13 countries, Coco Milk Tea was established in 1997 by Tommy Hung and has since grown to become one of the largest bubble tea franchises internationally. A 6% royalty on monthly sales is included in the $25,000 to $40,000 franchise fee for Coco Milk Tea.
There are a few things you need to follow if you want to operate a bubble tea business. You must first investigate the franchise criteria of various brands. A company plan that details your spending, location, and marketing strategy is also necessary. The final requirement is that you have the money available to pay for the franchise fee, equipment, and inventory expenditures.
In conclusion, if done properly, having a bubble tea franchise can be a successful business venture. It is important to keep in mind, though, that owning a franchise can be expensive and demands a large financial commitment. Before starting a bubble tea franchise, prospective owners should conduct their homework and have a sound business plan.
The report claims that depending on location, store size, equipment, and franchise fees, the cost to open a bubble tea shop in Singapore can range from SGD 50,000 to SGD 200,000 or more. There are also continuous operating expenses to take into account, like rent, utilities, and employee wages.