Fancy A Cuppa? Here Are Our Top 3 Tea Franchise Opportunities
If you’re happy or sad; hot or cold; busy or relaxing. A steaming hot cup of tea is the answer to most things in life. As a nation, Britain loves a cuppa, and even with the recent rise in the popularity of coffee, tea remains the most consumed drink in the UK.
In fact, the 2016 Tea Report commissioned by Tetley, found that a staggering 60 billion cups of tea were consumed in Britain in 2016, with 4 billion of these being enjoyed outside of the home. This translates to 3.6% year on year growth - great news for entrepreneurs that want to combine their love of a brew with owning a tea franchise.
With café chains re-evaluating their tea offering by tapping into customers' desire for speciality beverages, this is an exciting time to consider starting a franchise in the tea industry.
The future of tea
With health increasingly becoming an essential motivating factor for the younger tea drinking population, the sale of green tea and fruit blends have grown by 5.6% and 2.5% respectively. By promoting the health benefits, café owners can continue to drive interest in alternatives to ‘white with one sugar’.
Another way that innovative café owners can get tea back on the menu is by offering a ‘tea pairing' service. As people's taste buds become more sophisticated, and the trend of eating out of the home continues to rise, there is an opportunity to educate customers on what is available. Offering a range of different flavours to complement various food types will help not only meet customer demand but will drive profits and sales too.
Tea franchise opportunities
So, if you’re interested in starting a franchise in this constantly evolving, yet growing, industry; here are some opportunities for you to consider.
Creams British Luxury
If you’re seeking a more of a traditional tea franchise, then look no further than Creams British Luxury. Creams offer afternoon tea surrounded by glamour and sophistication. The tea rooms have been styled to represent the grandeur of the 1900’s, but with a modern twist.
Uniquely, there are two ways that you can choose to invest in a Creams franchise, depending on your budget. There is the traditional franchisee route, where you own and operate a store which typically costs between £100,000 and £120,000.
However, if this option is out of your price range, starting a franchise with Creams is still a possibility. Creams are one of the first franchises in the UK to offer a syndicate alternative. For as little as £20,000, you can own part of a store with a group of franchisee investors. How much you invest is up to you so you can choose how much of the business you're responsible for.
There’s also two different sizes of franchise that you can choose to run. If you have adequate funds, you can invest in a Creams store. This will see you running a beautifully designed tearoom boasting marble tables, live music and digital ordering. If a lower cost investment, is preferred, then there's the alternative Creams miniature showpiece available. This option offers customers the same superior product and service but on a reduced scale. These stores are suitable to take advantage of passing trade in busy shopping centres and airports.
This bubble tea franchise is leading the way with the concept that is now all the rage in the UK but has been a favourite in countries like Hong Kong, China and Taiwan since the 1980s. Mooboo specialises in bubble tea which is a recipe from Taiwan made by infusing a tea base with milk and fruit juices, then adding the characteristic ‘bubbles’ which are in fact tapioca pearls that sit at the bottom. To stay ahead of the competition, Mooboo provides comprehensive and extensive training for their new franchisees. The training programme covers product knowledge, business operations, marketing and IT systems. As well as the initial training, ongoing support and coaching are offered to ensure that franchisees fully comply with the standards required to achieve maximum profit potential.
From an investment perspective, if you’re interested in joining this bubble tea franchise, the initial cost will be £39,950. This investment will include the franchise fee, license fee, start-up costs, inventory, and training. The term of the franchise agreement is 15 years, which may be renewable subject to approval. Franchisees will also pay regular royalty fees and an annual rent of £30,000.
Another bubble tea franchise that’s become part of the next significant beverage retail opportunity in the UK is Bubbleology. This exciting lifestyle brand was established London’s bustling Soho district, in April 2011. Since then, the franchise has expanded to eight countries across Europe, the Middle East and the US.
Bubbleology is looking for prospective franchisees that have strong entrepreneurial spirit, are innovative, and highly self-motivated. Also, to be part of this ambitious brand, you’ll need previous retail or restaurant experience and a degree of local market knowledge.
From a financial perspective, the initial franchise fee is ₤23,000, and you’ll pay a 5% royalty fee and a 1% marketing fee on a monthly basis. You’re also required to have liquid assets of ₤76,000 and net worth of ₤230,000.
In exchange for the franchise fee, you’ll have the right to operate under the Bubbleology brand for five years, renewable for a further five years. You'll receive initial training to make sure you are confident with all operational aspects of the business as well as ten days of pre-opening training in your store so that you gain valuable hands-on experience.
So, if you’re interested in buying a tea franchise, the variety of opportunities available are as widespread as the number of flavours that can now be enjoyed.
The Editorial Team, Point Franchise ©
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