When you aspire to open bubble tea businesses in your locale, your perspective is to bring a Taiwanese drink to your country. The entire notion is dicey because people may or may not love this drink in your shop. But, seeing the worldwide popularity of this beverage, attempting a bubble tea business would not be a bad idea. Hence, the increasing acceptance of this beverage by Asian people prompts you to open a business, but before that, you have to look at key terms like expenses and profit. Without these two terms, a business is not fulfilled. So let us look at how much it will cost to open a bubble tea business and how much profit it can render-
The Expenses You Need to Bear to Open a Start-up
Depending on your location, spend as little as $15,000 figure as a start-up cost. These figures include buying equipment, renting a store, marketing material, ingredients, and other official costs. Here’s how your costs might break down.
- Rent:
According to a general estimation, the cost of rent per year would be $5000 approx, though it varies depending on the locales where you are opening your shop. If it is a college campus or pick-up point, the rent would be higher than the average.
- Equipment:
For the preparation of different flavors of bubble tea, the cost of the equipment can be more than 10000 dollars. Though it is a one-time investment, the figure is a little high for a start-up businessman. The basic equipment consists of a refrigerator, electric stove, a mixture grinder, a sealer machine, ice-ups, and a shaker.
- Ingredients:
The essential ingredients are milk, fruits, tapioca pearls, boba, tea, flavor syrups, and others. If you trace its types, the cost might be $2000 or up as well.
Logo and marketing materials may cost up to $10,000 or more. It may include all the marketing documents, like fliers, signage, store buying, and business cards.
- Insurance, License, and Liability Certification
Depending on the sale and marketing, the government will deduct the health insurance. The licensing of the shop may cost around 750 dollars.
- Staffing:
It is necessary to keep servers at your beverage stall because you can do everything single-handedly, from making bubble teas to serving them to the people. Initially, you have to keep two or three staff, which will cost you $5000 monthly.
Estimated Profit Margin from Bubble Tea Business
To figure out the annual revenue and calculate the average selling of bubble tea glasses, you need to sum up the price of each cup sold each day and then multiply that by about 350 days. However, you can contact Pearl Lemon Boba, who will guide you on how to start a bubble tea business at your locale.
According to annual surveys, bubble tea shops can generate an average profit of $175000. For instance, the selling price of $5.00/cup of bubble tea at your shop. You have sold 100 cups per day, multiply like this $500/day x 350 days = $175,000 is your annual revenue. Then subtract the yearly revenue from the expenses to get the annual profit.
