The bubble tea business valued at $2.75 billion with over 3,000 milk tea shops in the US. What’s extra is that the way forward for the bubble tea business appears to be like even brighter with annual gross sales development projected by means of 2030.
One milk tea model to take a look at is Ding Tea. Based mostly in Taiwan, Ding Tea provides totally different sorts of milk tea on their menu reminiscent of flavored teas, espresso, fruit juices, glowing drinks, and yogurt. This boba model has over 300 areas worldwide with 100 of them working in the US.
How a lot does it price to open Ding Tea? To franchise this milk tea model, anticipate the funding vary to speculate between $195,240 to $324,170 ($259,500 median price) and the franchise price of $30,000 to get began.
Is Ding Tea price this stage of funding contemplating the income expectations? Reader the dangers and monetary alternative of investing on this this Taiwan-based boba model franchise. Take our 7-minute quiz to seek out one of the best boba tea franchise primarily based in your finances and area.
Monetary Necessities and Charges
The next are the monetary bills you may anticipate once you franchise Ding Tea:
| Charges / Bills | Monetary Quantity |
| Whole Funding | $195,240 to $324,170 |
| Franchise Charge | $30,000 |
Different charges to notice are their promoting expenditures which is 3% of the gross month-to-month gross sales. As of the time of this writing, they don’t have a advertising fund however Ding Tea has the precise to cost franchisees with this fund once they determine to ascertain it. This fund can be 3% of the gross month-to-month gross sales.
Ding Tea additionally gives coaching previous to the opening of their store however must you want extra coaching because the firm will cost you $500 per particular person per day.
Common Gross sales / Income per Yr
At current there isn’t any public data as to how a lot Ding Tea makes yearly. Sadly, Ding Tea doesn’t make this data publicly out there. However an estimate on a small bubble tea store can generate about $1,000 to $3,000 or $360,000 to $1,080,000 yearly.
Based mostly on different ideas the typical revenue margin of bubble tea is about 18% after overhead like lease, electrical energy, labor, taxes, and substances like tea, milk, sweeteners, tapioca pearls, and fruit.
How A lot Does Ding Tea Make in Revenue?
There’s a lack of public monetary statements from Ding Tea. Luckily, we do have insights from competitor boba tea ideas that function at a revenue margin round 18%. This implies for each $1 million {dollars} in gross sales the everyday bubble tea enterprise could be generate $180,000 in revenue after all of the bills. In fact consider, the profitability of what you are promoting will likely be totally different primarily based on operations, substances used, and labor prices in your area.
Be sure to overview your private objectives for the profitability of any sort of enterprise earlier than investing. In lots of circumstances, franchise house owners have to function a number of models to hit revenue objectives.
Ding Tea Franchise Information
| Whole Models | 300 (100 U.S.A) |
| Integrated Identify | Ding Tea |
| Franchising Since | 2007 |
| Trade | Milk Tea |
| Subsector | Drinks |
Ding Tea was based in Taiwan in 2004 by Xu Wei-xiang. He believed that regardless of the rising variety of milk tea manufacturers, they have been inconsistent. Thus, he went on a mission to develop a greater high quality of tea and promote a brand new tea tradition by means of Ding Tea.
Ding Tea’s menu consists of recent teas, flavored teas, latte, milk teas, espresso, fruit juices, Yakult or yogurt drinks, sizzling drinks, and slush. For toppings, you may add golden boba, coconut jelly, grass jelly, espresso jelly, rainbow jelly, star fruit jelly, egg pudding, aloe vera, sea cream, pink bean, and crystal boba to your drinks.
To franchise Ding Tea, reaching out is step one and you might contact them through their electronic mail at [email protected] or by means of their contact quantity at +886-4-22530011. As soon as acquired you’ll get a fast franchise dialogue with a consultant.
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Going by means of the franchise contract comes subsequent and when you discover issues are agreeable with you, you may make issues official by signing with them. You’ll additionally be capable of seek the advice of with them your retailer choices in addition to having your proposed location be examined. The coaching and development part of the startup course of comes subsequent adopted by a grand opening.
Ding Tea has the next choices and {qualifications} for the mannequin of their franchised retailer:
- You may select a Private Retailer or Rented Retailer. Ding Tea has not defined additional what the distinction between these two are so it’s finest to debate this with them when you might have your first preliminary franchise dialogue.
- Retailer location must be evaluated and confirmed by franchise headquarters first.
- Preliminary franchise Assure Fee: $200,000 Promissory Notice.
Additionally they have the next {qualifications} for franchisees:
- Over 20 yr previous and has good credit score
- Has a whole lot of enthusiasm and insistence within the tea business.
- Franchisees are required to take part in coaching for studying expertise.
- All operational supplies associated to “Ding Tea” have to be bought immediately from headquarters to take care of consistency for high quality and model.
Ding Tea’s headquarters is positioned in Taichung, Taiwan.
Benefits of a Ding Tea Franchise
There are a number of benefits you may stay up for once you franchise Ding Tea close to you:
Demand
Milk Tea is a beverage that’s very a lot in-demand in the meanwhile. As talked about above there are over 3,000 shops in the US and extra are anticipated to open. The truth is, the milk tea business has a compound annual development fee of 8.9%. This general market development ought to present Ding Tea and different bubble tea ideas with the tailwind they should develop.
Have fun with Ding Tea.
Selection
Ding Tea has a wide range of milk tea on their menu which implies that clients who are available in have the next probability to come back again simply to attempt extra of their flavors. Except for milk tea, in addition they have flavored teas, yogurt drinks, espresso, latte, and extra.
Variety of Places
Ding Tea has over 100 areas in the US and is simply simply behind by a number of variety of areas from large manufacturers reminiscent of Gong Cha (190 areas) and ShareTea (135 areas). Because the variety of areas continues to be small in the US, it means there’s loads of runway for growth with this idea.
Challenges of a Ding Tea Franchise
Operating a enterprise can have its challenges and listed below are a number of you may anticipate in the case of franchising Ding Tea:
Preserving Up with Market Developments: Taste innovation comes quick within the bubble tea business. It’s necessary for Ding Tea to stay versatile and adapt to new taste tendencies or “it” drinks to maintain clients . Some current taste improvements within the bubble tea business embody:
- Lychee Jelly: This was a preferred addition from the beginning. Lychee jelly provides a candy, fruity taste and a novel texture to the drink.
- Salted Cheese Foam Caps: It is a current pattern amongst customers. The salty, creamy cheese foam contrasts with the candy tea, creating a novel taste profile.
- Actual Taro in Taro Milk Tea: Utilizing actual taro as an alternative of synthetic flavoring gives a extra genuine and pure style.
Competitors
Ding Tea has some powerful competitors significantly in the US. There are already large manufacturers with numerous areas reminiscent of Gong Cha, Sharetea, Coco, Blissful Lemon, and Chatime. Ding Tea might want to up their recreation in the case of advertising their model in the event that they wish to compete with the remaining.
Comply with Ding Tea on social media.
Lack of Advertising and marketing and Model Consciousness: If folks don’t learn about your bubble tea store or the drinks you provide, they gained’t come to buy them. Sadly, Ding Tea is just not a family title in the US. This implies it is going to be as much as the native franchise operator to market the enterprise successfully in every market. One of many main causes buyers put cash right into a franchise is model recognition. However on this situation, the very fact is just not many customers learn about this model in the US.
Sluggish Enlargement in the US
Ding Tea could appear sturdy with their retailer rely standing at 100 areas however as of the time of this writing, there isn’t any different information that experiences if they’ve any upcoming shops opening round the US. A lack of knowledge on their growth can have potential franchisees taking a step backwards from signing with them.
Is the Ding Tea Franchise Proper For You?
As of the time of this writing, it’s troublesome to evaluate how worthwhile Ding Tea will be for you since there’s a lack of economic data made publicly. So it’s finest to contact immediately with them when you’re actually and have a monetary advisor or authorized advisor undergo the Franchise Disclosure Doc earlier than signing the contract.
What’s another Ding Tea franchise?
One milk tea chain you may try is Sharetea. This model can be primarily based in Taiwan and has 400 areas worldwide.
To franchise Sharetea, anticipate a minimal funding of $300,000 and a franchise price of $48,000. You may try our full information in franchising Sharetea right here.
The milk tea enterprise is booming and with the precise model and placement, your milk tea franchise might simply develop right into a worthwhile enterprise. Could this information make it easier to select the precise milk tea enterprise enterprise.
