Boba, commonly referred to as bubble tea, is a well-liked Taiwanese beverage that has become extremely famous worldwide. However, the boba market has been declining recently, with many stores closing their doors. So why is boba ceasing operations? The oversaturation of the market is one factor, to be sure. There seems to be a boba shop on every corner in many large cities. Because there are so many options, it can be challenging for businesses to stand out and draw customers. As a result of the plethora of options, some customers could become overwhelmed and choose different beverages. The growing competition from alternative beverage options is another aspect. More options than ever before are available to consumers thanks to the proliferation of coffee shops and speciality beverages like fruit teas and matcha. As a result, some boba shops are finding it difficult to adapt to their consumers’ shifting tastes.
Additionally, the COVID-19 pandemic has had a significant impact on the food and beverage sector, and boba shops are no exception. Due to safety issues and regulatory rules, several businesses had to cease or scale back their operations. Some shoppers may still be cautious to enter crowded stores even after restrictions are relaxed. Regarding the possibility of a boba scarcity in 2021, there have been rumors of boba pearl shortages on a worldwide scale as a result of broken supply chains and elevated demand. Not all boba businesses, however, employ the same kind or caliber of boba pearls, and some may be able to obtain their supplies from other vendors.
Infinitea, a well-known boba franchise in the Philippines, has a franchise cost that ranges from Php 600,000 to Php 800,000 (about $12,000 to $16,000 USD) in terms of business opportunities. The franchise cost for I Love Milktea, a second boba shop in the Philippines, is from Php 300,000 to Php 500,000 (about $6,000 to $10,000 USD). The franchise cost for Potato Corner, a well-known boba and French fry franchise in the Philippines, ranges from Php 200,000 to Php 400,000 (about $4,000 to $8,000 USD).
In conclusion, a number of causes, including market saturation, competition from alternative beverage options, and the COVID-19 pandemic’s effects, can be blamed for the decrease of boba businesses. Despite the fact that there can be a shortage of boba pearls in some locations, the standard and accessibility of supplies can vary between retailers. Depending on the brand, the costs to open a boba franchise can run from moderate to high. It would be interesting to see how boba stores respond to shifting client tastes and deal with difficulties as the sector develops.