one of the most popular profitable
and in demand items is bubble tea
boba so today i'm going to be sharing
with you how to start a bubba shop
in less than 20 minutes so that way you
can start making some serious money
hello friends my name is wilson your
friend in helping you build a profitable
small business and a thriving food
business out of curiosity do you want to
start a bubble tea restaurant
definitely let me know in the comment
section below now i got a lot of people
asking me how to start a bubble tea shop
because of this video we talked about
why it is so profitable to start a
bubble tea shop
first off it is because it's low cost to
start up the equipment cost is very very
little
second it's high margins as an item
because a lot of times you're selling
just
water and third it is very easy to
operate and that's reason why i really
enjoy building out bubble tea shops in
my career i've definitely built
at least 10 bubble tea shops and that's
reason why i'm going to be sharing a lot
of
fundamentals with you and on top of that
as a disclaimer i cannot share too much
details with you because i do have a
non-compete
after we sold our business now without
further ado
let's dive right in first thing you need
to know is
to know your customers know exactly who
is it that you're trying to serve
because that will dictate your
menu item for example when you're
serving to caucasian people they're
looking
for a little bit more of a sweeter
palette whereas if you're serving to an
asian demographic they're looking for
more of a tea based
flavored item and the reason why i know
is because we operate out of the
richmond night market and
usually at those locations we serve taro
mango and also regular bubble tea
because those are the most popular item
and they're looking for more of a
sweeter palette now
at our standalone location at 720 suites
we
serve much more of a tea based item such
as oolong tea
such as pure tea because those people
have much more sophisticated palette and
desire for tea
now the whole point of saying this is
because when you know your customers
know exactly who you're targeting
then you can tailor the marketing you
can tailor the menu item
even for bubble tea there is a lot of
nuance so definitely
understand exactly who is it that you
are trying to serve in your
city now in addition to that you must
align your values with your customers
values as a quick example let's say if
your customers
value sustainability and you use
glass jars then that's a match and
you're aligned
in values so then that way you can turn
them
into raving fans that will always
support you now you can connect with
them
on a much more personal level and then
you can explode in revenue
a lot of people fail to do that because
they lack
the fundamentals align connect and
explode and if you fail on the
fundamentals then you're not going to
set your business up for success
and that's the reason why you should
definitely check out the free master
class we have
in the link below which is an hour a
free master class that talks to you
and shares with you about the
fundamentals of building a profitable
restaurant now after you identified your
customers
it is time to choose your concept what
do i mean by concept
is your concept a sit in and dine in
location or is it going to be a
grab-and-go location
are you going to be purchasing a
franchise or are you going to be
building
your own brand now the pros of
purchasing a franchise is the fact that
you're buying a brand name
that means you don't need to worry about
menu you don't need to worry about
your demographic you don't need to worry
about the location because they do all
the work for you
the downfall of that is that there's a
lot of cost involved
30 to 50 000 franchise fee and on top of
that you're paying six to eight percent
royalties
every single month now as a brand
you don't need to pay all those fees
however it is up to you to have the
business acumen to create your brand
to create your menu item and to create
the internal the course
that matches the people that you want to
serve so definitely choosing the right
concept to build right from the get-go
is very very important now that you have
chosen your concept
it is time to choose your location
location matters
a lot in today's world because with
running a bubble tea concept
the trick to actually make money is
volume
if you don't have enough volume then you
don't have enough profitability because
bubble tea is already a very very low
ticketed item that means you need a lot
of bubble teas that you're selling on a
daily basis for you to
actually make money so how do you do
that choose a location that is
around a lot of high rises i would stay
away from office buildings right now
because
we don't know when people are going to
go back to office buildings
whereas high rises where people are
living
they always need a treat especially if
they're stuck at home all the time
they need to buy food to make themselves
happy they need to go out for a stroll
they
can actually order from third party apps
that's reason why
choosing a location at high rises where
it's a very high density of residential
people is very very important in
addition to that
choosing a neighborhood that has more of
an asian demographic
is also very important now you might be
asking why it is because
bubble tea is still very strong and
leaning more towards an
asian culture drink and that's the
reason why choosing a neighborhood
that actually accepts this item
is very very important if you guys
enjoyed this video and find
value in this video make sure you guys
smash the like button and let me know
this is the type of content that you
enjoy now back to regular programming
now that you have chosen your location
it is time to figure out your
menu when it comes to menu choosing if
you're purchasing a franchise then you
don't need to worry about that
why is that the case because they give
you the menu for your location
and you just follow their system now
i know a lot of you guys here are here
to create your own brand and that's the
reason why it is super important for you
to pay attention right now
when crafting your menu item for your
own brand you need to
always go back to your customer
demographic understand
exactly who is it that you're trying to
serve and target and sell to
if you're targeting very highly
sophisticated tea drinkers
then you must offer different types of
tea
for example pure jasmine tea oolong
roasted tea these are just black teas
that i'm just
sharing with you now there's a lot of
other tea flavors and i've seen this
being a very successful model
for highly sophisticated tea drinkers
whereas if you're tailoring to people
that are liking
bubble tea as a dessert that they want
taro that they want
mango that they want milk tea slushes
then that's a very different type of
demographic that you
are catering to and the offering the
menu that you're
serving and crafting is also need to be
able to tailor to that demographic
so understanding exactly who you sell to
allows you
to craft your menu properly in addition
to that because
bubble tea has a low ticket value what
you need to do
you must try everything in your best
efforts
to increase your average order value
now what do i mean by that when people
come and purchase their bubble tea
a lot of times they may look be looking
for a snack so perhaps you can offer
waffles
bubble waffles is a very culturally
accepted
item as well that would also allow
people
to increase the average order value and
at the same time if people are looking
for a quick byte maybe a panini
maybe some other add-ons would allow you
to build out your menu item
so in that way you can become more
profitable next up after you've decided
on your menu you
must start creating a system a system so
then that way
anyone that comes into your operations
will
know exactly how to make the drink now
why is that super important
it is because quality assurance is
number one
when it comes to any types of food
business every time i come
into the shop i'm expecting the same
flavor
profile to hit the spot that i'm craving
for and if there's discrepancy
every single time i come in then i
wouldn't enjoy my experience with you
why is mcdonald's the number one
franchise in the world
it is because every burger that you eat
doesn't matter which city you're in
doesn't matter which country you're in
the same cheeseburger tastes the same
and that's what we want to be able to
strive for when creating
our bubble tea shop especially when it
comes to a bubble tea shop creating a
system
allows you to actually hire less people
which we'll dive into just a sec so what
do i mean by a system
system means that every time people come
in your cashier does the same thing they
greet the customers in the same way
they enter through the order the same
way and when your barista gets the order
how are they making the drinks how are
they receiving the drinks what does that
flow look like
if you don't have a system and a process
for each of these steps
what's going to happen is that you're
not going to be able to serve
that many people and once again as i'm
sharing with you
bubble tea is a high volume game as an
example for you
at one given time we're able to serve
over a hundred bubble teas every single
hour what does that mean
that means that we're serving two bubble
teas every single
minute how do we do that it is through
systems
and processes it means that we take out
any unnecessary frictions that means
we're efficient
with every single process that we have
and that's how we're able to serve more
than two bubble teas
every single minute by having systems
an example of how you can actually start
creating your own system
what you need to do is to break down the
different steps that
your staff goes through the little
minute steps every single steps you need
to break it down
and look for inefficiency look for who's
responsible
and look for how you can increase and
take out any friction
that there is and that's how you can
create that system
log it down and continue to improve that
and in time
you're going to be able to create a
system that works for your shop
now after you have your systems created
it is time to think about
labor when it comes to labor hire based
on values
just the same thing as when you connect
to your customers through having the
same values
you must hire based on the same values
you might be asking
why is that the case it is because if
your people
that work for you don't have the same
values as you do what's going to happen
is that there's going to be friction
and they're going to leave and that's
going to cost you money through training
and through investment as well so you
must hire based on values and on top of
that
when you work with people that have the
same values they're going to care about
your business
much more they're going to be able to
have common sense and
care for your business like their own so
definitely higher
based on value now earlier i touched up
upon why systems is so important when it
comes to
labor because when you have right
systems then you can have very
efficient labor that means that two
people can do the job
of four people so definitely make sure
you focus on having great systems so in
that way it can minimize
your labor cost now speaking about cost
you must calculate your costs that you
are planning to start up with first big
cost is your
equipment now when running a bubble tea
shop you don't need that much equipment
you first of all you need your pos
system second
is that you need your cup sealers for
your cups and third you're going to need
your ice machine
you're going to need under counter
cooler you're going to need a sugar
dispenser
you're going to need a stand up freezer
and on top of that you're also going to
need
some tea brewers and blenders and on top
of that
all the different utility and utensil
costs
is what you need so when you add
everything up it really isn't that much
compared to starting a restaurant and
that's the reason why this model is so
popular
next up you need to account for your
inventory cost and typically i would
account around two to three thousand
dollars for inventory cost you don't
want to
over stock inventory at the same time
you don't want to under stock so that
way you sell out within a week or two
weeks
definitely 2 000 to 3 000 is a sweet
spot when it comes to inventory
next up you need to account for your
marketing costs
your initial launch and i would account
for around two thousand dollars when it
comes to marketing
ah something i forgot rent and franchise
fee
depending on where location you're at
that's your rent cost and on top of that
franchise fee is around
thirty to fifty thousand dollars
depending on the franchise
if you were to purchase a franchise and
again
typically franchise is around six to
eight percent royalties that means every
dollar you make you need to give them
six to eight cents
depending whether or not you are
subscribing into a franchise model
quick story that i want to share with
you is that you must account for
a buffer and what does that mean that
means additional money
that you haven't budgeted for just put
that aside why is that the case it is
because it's super important
when running a business is to have that
additional
runway in case of emergency quick story
when we first started our ice cream shop
720 suites we
budgeted for a hundred thousand dollars
so that way we can open our doors
after two weeks of opening we were so
slamming busy
that we realized our ice cream machine
was not the right model
it didn't create enough ice creams per
hour
and our machine was just too crappy and
that's the reason why we need to upgrade
and to spend an additional thirty
thousand dollars to upgrade to a higher
level machine
and if we didn't account for
enough capital on the site we wouldn't
be able to upgrade our machine and we
won't be able to serve and make back our
money even faster
long story short you must have a buffer
when
calculating your startup costs and
finally
the next step is to market your bubble
tea shop it is super super
important for you to actually get your
fundamentals right get your alignment
right
align your values connect with your
customers and then
we explode in revenue and then we deal
with marketing
that's the fundamental that you must
follow if you want to create a
profitable
bubble tea shop and once again the free
master class is in the link below
definitely go check it out when we're
talking about marketing what are some of
the tactics that you can use to market
for your bubble tea shop
first up still utilize instagram it is
one of the
biggest platforms out there that
everyone is on definitely utilize that
second tick tock be on tick tock and
create
viral engaging content content that
allows people to loop
10 to 15 seconds are the best format
on tick tock and lastly make sure you
utilize
ugc what is ugc user generated content
what does it mean that means when people
come into your bubble tea shop
when they purchase from you when they
post about you you must
save those posts and repost them on your
repost it on your tik tok repost it on
your website this way it allows people
to see how credible you are because once
again
what you say about your shop doesn't
carry as much weight
as what other people say about you so
definitely utilize
ugc and on top of that something that
you must
start looking into is also google my
business because a lot of people
rely on reviews before they go and check
out your shop or
not so definitely google my business is
a very
underrated platform that not a lot of
people use so if you want to learn how
to optimize your google my business
check out this video right here
and lastly view third party delivery
apps as your friend
utilize it sign up for all of them use
it so then that way you can get
more people in the house don't view it
as a profit generating
center use it as a marketing tool now
you might be asking
what does that mean that means that when
people are coming through the doors
through delivery apps it is your
responsibility to actually
get them to buy from you off the
delivery apps some ways to do that
is to slip a coupon and an insert cart
into the delivery package that you're
sending to the delivery
customers so that way when they see that
card when they see that hey
when they come in and purchase through
your website or if they walk in they're
going to get 10
off or if there's going to be other
promotions or
if they follow your newsletter or if
they follow your instagram or your tech
talk they get 10 off
then they're much more likely to go into
your
own funnel your own platforms your world
so
that way you can market to them you can
send them to your website to purchase
you can send them to walk into purchase
or you can just send them your way so
that way you can skip the 20 30
fees after they have been your customer
once or twice so there you guys go
the formula and starting a profitable
bubble tea shop
now i just scratched the surface for you
and if you want more in-depth
training on how do you start one and the
full-on roadmap
the mistakes that you need to avoid then
definitely check it out in my free
master class
where i cover the a's formula to show
you the step-by-step process and how you
can create
a profitable restaurant using align
connect
and explode aligning your values
connecting with your customers so then
that way
you have loyal customers who choose you
over your competitors
every single time and then exploding in
revenue
tactics and strategies that you can use
in your new bubble tea shop
definitely check it out in the link
below otherwise i hope you enjoyed this
video
if you guys do smash the like button
otherwise i'll see you guys
in the next video