Tea Room: How to Start a Tea Shop

Tea is very popular in the United States of America and worldwide. It has a place in different cultures and traditions. Tea shops are popular in cities with large populations and small communities.

The business requires socializing, hard work and copious amount of brewed tea. Tea shops are best suited for people with discretionary income. The owner should have the prerequisite experience, knowledge of different types of tea. They should have adequate skill in tea brewing.

Learning the Trade

The business requires knowledge of tea brewing and commerce. There are specialty tea institutes that teach brew. While online courses offer certificate on completion of the course. Another way to gain knowledge is to work at a tea shop or hire an expert for tutorials.

Learn

•         Tea institute

•         Online courses

•         Books

•         EBooks

•         Job place experience

•         Tutorials

Steps to Start a Tea Shop

The entrepreneur needs a business plan and form a legal entity. Other provisions are opening a separate bank account, taxes and obtaining permits and licenses. They need proper branding, business insurance, web presence and startup funding.

1.       Business plan

2.       Form a legal entity

3.       Opening a separate bank account

4.       Taxes

5.       Obtaining permits and licenses

6.       Proper branding and Marketing

7.       Business insurance

8.       Web presence

9.       Startup funding

Startup Costs

Startup costs depends on many factors. They include rent, purchase of equipment, staff wages, legal. There is huge cost deferential between a small kiosk and a shop located in a commercial area.

Other variables are country, utility bills and cost of raw materials. A small kiosk can cost less than $1000 while one in a commercial area could attract $90,000 investment.

Equipment

A tea shop needs good equipment to offer quality service. Common equipment are coffee, tea brewers, cappuccino and espresso machine. Others are beverage dispenser, tea accessories, tea and coffee mugs.

More include coffee pots, coffee server, tea press, urns, creamers and Air-pots. They use frothing pitchers, sugar pourers, caddies, tea service accessories and disposable supplies.

Tea Shop Equipment

•         Coffee, tea brewers

•         Cappuccino and espresso machine

•         Beverage dispenser

•         Tea accessories

•         Tea and coffee mugs

•         Coffee pots

•         Coffee server

•         Tea press

•         Urns

•         Creamers

•         Air-pots

•         frothing pitchers

•         Sugar pourers

•         Caddies

•         Tea service accessories

•         Disposable supplies

Funding the Tea Shop

The funding depends on the location, infrastructure and size of the establishment. Funding can be sourced through target personal savings or borrowing. The entrepreneur can approach a commercial bank to obtain loan facility.

The loan should be long-termed, low interest rate. The shop proprietor needs 20% of startup equity, collateral, business plan and guarantors. Other funding sources are through partnership, angel investors, crowd-funding and finding a core investor.

Earning Potential

Things that affect prices are cost of raw materials, utilities, labor and rent. Others are shops location, type of tea determines the price. Tea shops make money from selling brewed tea, packaged tea, gift baskets and food.

The average price for a cup of tea is from 50c to $3 based on method of preparation and ingredients. The profit depends on the type of clientele from middle to upper-class patrons.

A tea shop situated in an affluent location can charge more than one in the suburbs. A shop located at a busy intersect, central business district or commercial area will earn good profit. However the more upscale the establishment the high the overhead costs.

Legal

The legal considerations involves registering the business, acquiring an operational license. Register as a LLC or sole proprietorship.

A limited liability entity will reduce personal liability. It is important to secure sales tax, pass health inspection, facility inspection and get insurance. A certificate of occupancy is only required if the store is purchased.

The Location

A good location is important in the tea service business. The site could be at a busy intersection, popular area or commercial area. The location will impact price and expenditure.

Labor

A single individual can run a tea shop successfully. Many owners hire additional help as the customer base increases. This can be done on a part time bases or casual labor arrangement. If the business template includes serving baked products or food it will require more employees.

Added Services

To increase income the proprietor can add snacks, salads and food. Serve small chops, sandwiches, biscuits, baked products. The products can be sourced from a third party. However salad/sandwiches do not require serious equipment and are easy to make.

Market the Tea Shop

Marketing provisions includes print, radio and television advertisement. Use local newspaper publications, print flyers, poster and banners.

Place a large signage board in-front of the shop, offer free samples, coupons and promotions. Make sure to work within an affordable budget to reduce costs on advertisement. To encourage interest and patronage organize community tea tasting events.

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