What is the profit margin on bubble tea?

Four years later, and they now have seven. Other successful franchises such as Coco and Chatime have also opened many locations in the past few years. That’s not to mention the whole slew of new franchises that have opened in Calgary, including The Alley, Kung Fu Tea, YiFang, and many more.

What is the average profit margin for a franchise?

Margins can vary by ownership, of course, but on average, the industry has been in the 1.5 percent to 1.9 percent range in recent years, including 1.5 percent in the 12 months ended April 11.

How much does it cost to make a bubble tea?

On average, a store charges $3.00-$3.50 USD for a serving of bubble tea (16oz or 20oz serving). However, the approximate cost for materials approximately $0.75 USD to make. That’s about a 350\% markup. Wow!

What is the target market of bubble tea?

We currently target those in the 15-30 age range, all of whom actively use social media and are interested in what’s trendy.” – Sophia K., marketing manager at Super Cue Cafe.

Should I buy a franchise of a bubble tea shop?

It is a fact that most business people would prefer to buy into the franchise of a successful bubble tea shop than opening their own business outright. If you want to join a brand, you have to pay the franchise cost and this make up a large percentage of your startup cost. Different brands will produce different brand costs.

What is the best profit margin for a bubble tea business?

Nonetheless, it is advisable to keep an eye on the pricing of direct (other bubble tea retailers) or indirect (coffee houses, smoothie shops, etc.) competitors. A 350 percent mark-up on a beverage is not unreasonable especially in this business. Gross profit margins in the 75-80 percent range are not rare in the food and beverage retail industry.

How much money can you make selling bubble tea?

However, bubble tea stores make drink for a cost of roughly 75 cents and sell the drink for a few dollars. Although it all depends on your competition and pricing sensitivity, you could make a mark-up of 350 percent or better on the drink. Additional revenue might be derived from the other foods, drinks, or merchandise you sell.

How much does it cost to open a ShareTea franchise?

The franchise fee for a traditional store is $37,000. They also offer nontraditional options, like those in shopping centers. But those fees vary on a case-by-case basis. Total upfront costs fall between $124,050 and $428,050. 3. Sharetea Sharetea franchise locations are all about bringing fun to the milk tea beverage experience.