How to Open a Boba Shop? The Cost of Starting Up a Tea Shop

Why Do Many People Want to Open Restaurants, Cafes, and Tea Shops

1. Enormous Market

Eating has always been a necessary need in life. Human beings have to eat and drink every day. Having delicious food can help you feel pleasant. All men, women, and children from 9 to 99 years old are customers.

2. Be Your Own Owner

Open a store, it can be said that starting from the product side, to finding the storefront, and decoration can be decided by one hand. All links are under your own control.

3. Differentiation is Simply Constructed

Whether it is the product, the style of the shop, or the service side, there are opportunities to create special features. Even if it’s a cup of bubble tea, different flavors can be discovered in different shops.

How to Calculate the Cost of Opening a Shop

It begins with considering how to estimate the profit and save rent cost when renting the shop. (Revenue – Cost= Gross Profit)

The Profit and Loss Statement determines the success of a business. The first goal of opening a shop is “balance the profit and loss”. This means that entrepreneurs at least not need to invest capital continually, so that the cash flow becomes negative. This low standard for entrepreneurship allows operators to exchange time for space before the working capital is burned out, and slowly cultivate customer relationships. After all, it is not easy for a new shop to fill up with customers and make profit immediately.

First of all, we must first calculate the “cost”. The simplest algorithm is material cost + labor expenses + rent= cost. However, with different types of business, the overall cost has different details. The most common way to do is by dividing the costs into “fixed cost” and “variable cost”. For example, rent paid on a monthly basis is fixed cost; as for the variable cost, it includes monthly charges in water, electricity, telephone, gas, labor, and marketing expenses. Then, after deducting the cost from the monthly revenue, the gross profit is calculated. If you want to make money, the cost should not exceed 70% of your turnover. Otherwise, the hard work is equivalent to doing nothing.

Secondly, it is also possible to further calculate the “gross margin” from the product price to determine whether there is room for profit. The gross margin must be at least about 55% to 70% to avoid losing money. Such entrepreneurial products can provide higher chance to open a shop.

How to Choose the Right Supplier

Cooperating with one or more good suppliers is very important. In addition to providing reasonable prices, stable quality, and innovative capabilities, customization also stands as a crucial role. A complete “international” food safety certification. If the supplier can provide one-stop service, it can save you lot of time and cost. The time saved will allow who are just starting a business or preparing for new stores that more time is available to do marketing or concentrate on retraining. Combining all of the above can make you heart-eased. High Tea provides a one-stop service, cups, straws, consumables, raw materials, and machines for entire store can all be done at once!

How Much Money Is Needed to Open a Boba Shop

Brand design, store rent, decoration, raw materials, machinery & equipment, employees, etc. All need to spend money, depending on the level of different countries, taxes, consumption levels, and labor costs.

Email: peichen@hightea.com.tw

Address: No.26, Wuquan 6th Rd., Wugu Dist., New Taipei City 24889, Taiwan

Related Article: How To Start a Bubble Tea Business – PEI CHEN

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