Tea Bar - sustaining business on tea sales?

Trends and Tips on developing and operating a tea business.

Tea Bar - sustaining business on tea sales?

Postby jonnyKane » Jul 11th, '06, 00:47

Hi :)

I am working through the idea of setting up a Tea Bar which ultimately I would like to franchise!

One of the first questions that comes to my, and others minds is how can you sustain the bsiness on sales of Tea alone. Obviously we would sell a range of basic snacks to compliment along with Teapots and other items... but in doing the numbers... even if over a 10 hour day we were selling a cup of tea a minute, which would be presumably be a good busy day, at say $3(non US) then that's still only $1800 so would have to assume it may only do half that at best realistically.

So what kind of daily/weekly turnover is common for a Tea Bar in the U.S. (or wherever you are)?

I am thinking I would find a location that enables a street window/bar for serving Takeout Teas as well, especially ice teas in the summer, this always draws good attention from passers by.

I guess it's always a battle trying to find good location which quite important, yet trying not to suffer from paying too high in overheads huh?

Any comments based on the basic numbers of running a Tea Bar would be very interesting

many thanks, look forward to hearing from a few of you.

jon :idea:
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tea store

Postby tealust » Sep 1st, '06, 13:30


I like your entrepreneur spirit. I also try to start tea and coffee business. I would like someday run a franchise. I think the biggest obstacle is customers. I would suggest also sell coffee, cookies, tea pot etc. If you can get $900 a day that is very good depend on how much it cost you to hire employee and rent a place. I know I can get good quality tea from VietNam to me in the US for only $20/kg, and super quality, rare tea only go up to $150/kg. The tea is very cheap, I can get it very cheap. Beside the tea, I can get furniture, and coffee at very low price. I think the biggest thing you have to be concern about is if you can get a good amount of customers. You have to have enough money to survive for one year until more people know you and you have more customer. Maybe you should try to sell on the Internet to limit the overhead cost. I look at prices at many tea stores and website, I know the profit margin is very high, but you won't make any money if you can't find customers. If you want any help from me feel free to email me at vuong_chan_nhan@yahoo.com
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Re: Tea Bar - sustaining business on tea sales?

Postby jonnyKane » Sep 1st, '06, 18:19

Hi :o) Thanks very much for your reply. I hadn't been back here for a while coz nobody had replied, so thanks.

Yeah I've made some very good progress since I last posted. My planning is in full swing, I've had my first meeting with my proposed tea supplier, and the owners have offered me thier support. As I have proposed to them a concept Tea Lounge based on thier designer line of teas they are looking to support also through investing in fittings and fixtures, pots/cups etc... possibly even furniture. It works really well for them as an extension of brand marketing. So that side of things is looking very promising! :o)

Now it's a matter of finding an ideal location for a reasonable lease, something we feel is worth waiting for, because as you say that will be a big part in bringing in the customers for various reasons, including foot traffic. The other big question on my mind at the moment is to what extent I do food service. I'll definately be doing sandwiches, cakes, scones etc. I don't see this having a full scale kitchen setup but I am aware of the difficulties of serving only tea and trying to become reasonably profitable. I've got a few ideas and some good competitive advantages in my concept which will help.

Anyway, will keep things posted on this thread when I've made further significant progress.

Thanks again, Jon :o)
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Thinking along the same lines

Postby greengirl » Nov 9th, '06, 02:43

Hi there,

I am absolutely brand new to the site but am interested in this post and am starting initial stages of research into a tea shop/tea bar idea.

After a trip to Chicago in October and a visit to Teavana, I was really impressed with their concept and the idea of bringing a large variety of loose leaf tea to the consumer not only to puchase loose leaf but by the cup for take out as well.

I think I know of a location in Toronto, Canada that this business would do quite well in but the rent in this area is quite high and I'm just wondering what is realistic in terms of sales and the ability to operate this business at a decent profit. I like Teavana's model a lot and think that selling the loose teas, the tea bar drinks and a few types of tea accessories/gift type items would be the limit. Also, location size that i'm looking at is between 230 - 300 sq ft. So there is not a ton of room for a lot of hard goods.

I am enrolled in a Tea Apprecation certificate course at a local college in Toronto to help educate myself.

What I am really, really unsure of at the moment, is the whole supply chain of the teas. I'm learning about the extremely vast variety and types of teas and wondering how to go about sourcing a reliable vendor. Or do I need multiple vendors? I'm really clueless at this point and would appreciate any information/advice that people here have to offer.
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