🍟 2/17/2022 – Is Boba Tea The New Coffee?
Sully: The Great Resignation
We’ve all seen headlines about the great resignation, but the number of new business applications in 2021 are pretty staggering.
If there’s one positive from covid, it’s that many people took time to think about their careers, and apparently many decided to bet on themself instead of their company!
Tropical MBA: Built to Sell
In light of all the new business applications – and in the spirit of this newsletter (which is to help you on your franchise journey) – this podcast dives in on something that isn’t spoken of much: what happens when you sell?
A sad reality is that 70% of owners REGRET selling their business. The aftermath can take an emotional toll on the owner, which is why you should be strategic about how you build your business, so you can be happy when you strategically sell it!
One Franchise Breakdown:
- Founded in 2016, franchising since 2018
- Based in California; 16 locations open as of 2021
- A boba tea franchise serving boba tea blends as well as macarons
Fees + Investment
- Royalty: 5% of gross sales
- Brand Fund: 1% of gross sales
- Franchise Fee: $45,000
- Initial investment: $209,000 – $492,500
- The below information is based on 5 franchised units from 2018 through 2020
The Wolf’s Take
Full disclosure – I’ve never tried Boba tea, but DAMN those drinks look good! Next time I come across a tea shop I am 100% trying one.
As for Teaspoon‘s numbers – they look rock solid. And in fact, at this early stage, their average unit volume is higher than most coffee chains out there, plus the investment profile is a little lower than the standard coffee shop.
That’s what we like to see!
For those who are unfamiliar, according to my handy google search – just like a latte tastes different from an iced coffee, Boba tea flavors will vary and each have distinct profiles. The difference is that boba tea has far more versatility, so while it can be creamy like a latte, there’s also fruity flavors on the menu.
Guava sunset anyone??
The United States is far more of a coffee drinking country than tea drinking country – whereas some Asian countries still drink far more tea than coffee. But Boba tea is without a doubt on the rise in the States, and was even declared by Yelp as the most popular delivery item early in covid in states like California, Hawaii, and Michigan!
Now could be a good time to evaluate this trend..before it fully takes off!
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