Some FunTeaMentals


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Some FunTeaMentals

Postby Chip » Dec 12th, '09, 14:05

I think some of us would appreciate knowing some "fundamentals" at this point in time since we are asked to be "involved," answers subject to change of course. I apologize if you have answered some questions elsewhere already.

This will also serve to hopefully foster further discussion. Perhaps other members have some fundamental questions to add, please do.

1. Will this be a "company store" that is fully owned and operated by Adagio or will it be a somewhat seperate entity? Will it be named Adagio?

2. This was asked in another category today, thought I would add it here. What form of ownership is Adagio?

3. Are there plans to open more retail stores? Or is this a model experiment to illustrate and educate?

4. Any idea about size of the retail store, has the location been picked, and proposed opening date?

5. More to come ... :D
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Re: Some FunTeaMentals

Postby Charles » Dec 12th, '09, 16:12

Good afternoon,

A few of these questions would make good blog entries, and so I may elaborate more soon. That said, here's the nuts and bolts:

1. This will be 100% owned and operated by Adagio Teas. That said, Adagio is owned by some pretty impressive people. I don't want to jinx it but so far it appears that I'll have a great deal of freedom to apply what I've learned over the past five years in Tea Retail, apply the suggestions of our customer base, and experiment with the model in an effort to find the perfect balance. The store will most likely bear the Adagio brand and name, but there has been some debate over the options there.

2. Adagio is a privately held family company. More information at http://www.teamuse.com/article_061001.html.

3. I would like to continue our expansion but it depends on the performance of the store. Unless things go very poorly with the first, we will likely open a second and maybe a third, all in the Chicago land area. I'd hate to give up on retail because of some unique problem at one location. Expansion beyond the first two or three, however, will require a very solid business case. It is possible that these stores will be great for the brand and overall business, but not terribly profitable individually. Or they may be extremely successful on their own which would prompt us to expand to other key markets.

4. The location will most likely be somewhere between 1,200 and 1,500 feet of retail space. Smaller is possible but then we'd have to give up some of our ideas for "experiencing tea". There are a handful of neighborhoods around the Chicago area that I'm targeting, but because I am aware of a couple other tea companies that are looking in similar areas I'll keep that secret for now. We are negotiating on one space currently, but the odds are always against any specific location until the lease is actually signed. The most important thing is that the location is PERFECT. The future of Adagio Retail depends on it!

Any other questions... bring it on. :)
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Re: Some FunTeaMentals

Postby Chip » Dec 14th, '09, 10:58

Thanks Charles ... I hope other members will bring on some questions as well.
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Re: Some FunTeaMentals

Postby Everyoneloveste... » Dec 30th, '09, 17:34

Portland (Oregon) is an awesome location for a second shop. Adagio would be epic there. I'm surprised you didn't pick San Francisco
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Re: Some FunTeaMentals

Postby Charles » Dec 31st, '09, 10:10

San Francisco has a great tea culture but the demographic and cultural sensibilities are very different from the rest of the country. A concept that works in San Francisco may or may not work in Chicago, NY, LA, Atlanta or Dallas. We chose Chicago, in part, because it is a much closer to the average American.
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Re: Some FunTeaMentals

Postby geeber1 » Dec 31st, '09, 11:48

+1 on Portland! Even though I only get there a few times a year, at least it would be within driving distance!
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Re: Some FunTeaMentals

Postby TubbyCow » Dec 31st, '09, 15:04

If Chicago works out well, any plans for NY in the distant future?

I've got family in both Chicago and NY, and it would be great to be able to point them all to Adagio when the time comes to buy gifts (Sorry, Christmas still on the brain) for me or to themselves from me. Makes things very simple.
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Re: Some FunTeaMentals

Postby Charles » Jan 4th, '10, 17:06

TubbyCow wrote:If Chicago works out well, any plans for NY in the distant future?


There are three distinct options and lots of variation in between:

1. The retail model doesn't work and we stick to E-Commerce and wholesale.

2. The retail model works well as brand building and is good for exposure, but isn't profitable enough to open more than a handful of flagship stores in key markets.

3. The retail model is a smashing success and we open a chain of stores.

Adagio has been successful online, through grocery chains and in wholesale. They've also been successful with loose tea, bagged tea, ready-to-drink bottled tea and custom manufactured teaware and accessories. The company doesn't NEED the retail model, but we'd love to see it work. Quite simply, it's a lot of fun to share our passion for tea directly with the customer!
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Re: Some FunTeaMentals

Postby Chip » Jan 5th, '10, 13:34

Charles, you already asked what teas should Adagio carry, what about a topic for teawares? viewtopic.php?f=55&t=11549

viewtopic.php?f=55&t=11548&start=15#p137655

How about a TeaRetailer article on the subject of teaware, and then of course a topic under TeaChat > TeaRetailer where we could discuss possible additions to the line up?
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