The bubble tea market is estimated to achieve $4.3 billion in worth by 2027. One rising bubble tea model with greater than 400 areas world wide is Sharetea they usually’re open for franchising.
How a lot does it price to open Sharetea? This milk tea chain requires a minimal liquid capital of $100,000. You may anticipate the preliminary funding to be a minimal of $300,000 together with a franchise price of $48,000.
Able to study extra find out how to franchise Sharetea and whether or not or not the chance is definitely worth the funding? This franchise assessment breaks down the profitability of this boba tea franchise and the important thing challenges this enterprise faces. Click on right here to take our 7-minute franchise quiz to get matched with a possibility that matches your funding stage and pursuits.
Monetary Necessities and Charges
| Charges / Bills | Monetary Quantity |
| Liquid Capital | $100,000 |
| Complete Funding | $300,000 |
| Franchise Price | $48,000 |
The small print above are the monetary necessities and costs you possibly can anticipate whenever you need to franchise Sharetea. Nonetheless, keep in mind that these necessities are solely the minimal price and that elements comparable to the situation, gear, provides, and dimension of the shop could have an effect on these numbers. As well as, Sharetea costs a royalty price of 6% with minimal $1,200.
Common Gross sales / Income per 12 months
In accordance with Restaurant Enterprise On-line, Sharetea generated gross sales of $47 million in 2021.
Sharetea Franchise Info
| Complete Models | 400+ (135 U.S.A) |
| Included Title | Sharetea Franchise Worldwide, Inc. |
| Franchising Since | 2006 |
| Business | Bubble Tea |
| Subsector | Beverage |
Sharetea was based by Mr. Cheng Kai-Lung in 1992 in Taiwan. Kai-Lung was working as a movie and TV director when he give up his job to promote pearl milk tea and black tea drinks as a road vendor. He discovered success on this enterprise and continued to increase. At the moment, Sharetea has greater than 400 shops worldwide.
Sharetea is a model of bubble tea that could be a freshly brewed tea-based drink that’s paired with milk, sugar, and pearl balls constituted of tapioca that’s additionally referred to as boba. Mixing all these substances creates bubbles. That’s why it’s referred to as bubble tea and has a wide range of names comparable to milk tea, pearl milk tea, boba tea, and tapioca milk tea.
Sharetea.
At Sharetea, they use tea leaves shipped from Taiwan of their drinks. They’ve additionally expanded their menu to incorporate different objects than simply common milk and tea comparable to flavored drinks with fruits. Milk tea will be served both scorching or chilly.
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The menu at Sharetea contains the Basic Pearl Milk Tea, Thai Pearl Milk Tea, Matcha Purple Bean Milk Tea, and Mango Inexperienced Milk Tea. There are additionally fruit teas comparable to Peach Kiwi Tea with Aiyu Jelly and Wintermelon Lemonade. You may as well customise your orders comparable to including pearls, aloe vera, pudding, lychee jelly, purple bean, and herb jelly. Sugar ranges will also be personalized.
To franchise Sharetea, full the applying kind right here. You’ll then be contacted by the corporate and undergo their qualification course of at their headquarters in Taiwan. You’ll be capable of discover the perfect location in your Sharetea and if all goes properly, signal the contract, obtain the required coaching after which open your individual Sharetea.
Sharetea is open for franchising in the USA in addition to in different nations comparable to Australia, Philippines, and the Center East. In the USA, Sharetea has over 135 areas. Presently, Sharetea is owned by Lian Fa Worldwide Eating Enterprise Company.
How A lot Does Sharetea Make in Revenue?
Sharetea noticed internet income of $3.1 million in 2021 in accordance with publicly obtainable information. As for franchise house owners, it’s not identified formally how a lot every retailer sees in revenue however it’s estimated that franchise house owners could make $50,000 to $100,000 yearly. This depends upon a number of elements comparable to how a lot work these franchisees put in and whether or not or not they’ve a great location. It is usually estimated that it would take 5 to eight years for a franchise proprietor to recuperate from the funding.
Benefits of a Sharetea Franchise
Sharetea is open for franchising.
The bubble tea market, particularly Sharetea, have quite a lot of benefits whenever you franchise with them. Listed here are a number of:
World Presence
Sharetea is a model that’s identified in 13 nations worldwide. They’ve a robust international presence that continues to increase. In October 2022, Sharetea opened a location in Cairo, Egypt and plans to open 20 extra.
Menu Selection
The boba tea alternatives at Sharetea are considerable. They’ve milk teas, fruit teas, flavored teas, and ice blended ones. In addition they have completely different sinkers or add-ons from pearls to aloe vera and lychee jelly. On a food regimen and nonetheless need to get milk tea? Go for a brewed tea at Sharetea. They’ll additionally customise the sugar stage for you.
It’s Right here To Keep
Many assume that bubble tea is only a fad similar to how frozen yogurt as soon as took over the world by storm however is now seeing unstable market development. Bubble tea is right here to remain. It began as a well-liked drink in Asia within the 80s and it continues at present and sooner or later. The substances are low-cost and the startup prices are inexpensive. What issues is the situation and competitors in your space in your Sharetea to have the ability to develop.
Quick Rising Business
The bubble tea market is rising quickly. In accordance with Grand View Analysis, the worldwide bubble tea market is predicted to achieve $5.42 billion by 2030, rising at a CAGR of 8.9% from 2023 to 2030. There are a variety of causes contributing to development together with the rising reputation of bubble tea amongst younger folks, rising variety of bubble tea outlets in the USA and the recognition on social media.
Challenges of a Sharetea Franchise
Companies pose some challenges and franchising one is not any exception. Listed here are a number of challenges to anticipate as a franchisee.
Competitors
The milk tea craze is rising yearly that the competitors is hard. You will have Gong Cha with over 1,100 shops all around the world. There’s additionally Completely happy Lemon with 1,000 shops globally. Kung Fu Tea can be huge and in accordance with Yelp they’re the largest bubble tea chain in America.
A number of the main gamers out there embrace Sharetea, Gong Cha, Rapidly, Ten Ren, and The Alley. These firms are increasing their franchise community and launching new merchandise with a purpose to keep their market share. So if you happen to determine to franchise Sharetea, it’s essential to be capable of choose a extremely good location so that you simply received’t compete intently with different manufacturers.
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Lawsuits
Sharetea has been embroiled in a lawsuit in Sharetea Australia concerning underpayment of staff in a few of their areas. Although this situation was solely introduced up in Australia, the lawsuit can injury the model’s identify as an entire.
Fragmented Market Segmentation
One problem with international enlargement of any bubble tea chain is that the market is segmented by area, product sort, taste, and distribution channel. The Asia-Pacific area is the most important marketplace for bubble tea, adopted by North America and Europe. The product sort phase is dominated by milk tea, adopted by fruit tea and smoothies. The flavour phase is dominated by unique, adopted by taro and matcha. The distribution channel phase is dominated by specialty shops, adopted by supermarkets and comfort shops.
Is the Sharetea Franchise Proper For You?
Sharetea looks as if a great funding however contemplating that the milk tea market is stuffed with opponents, it’s greatest to research the situation of your doable Sharetea and ensure that it’s situated in a perfect location with excessive foot visitors and a demographic of younger individuals who get pleasure from this scrumptious beverage.
What’s another Sharetea franchise?
One other milk tea model that’s value testing is Gong Cha. This milk tea firm was based in 2006 in Taiwan. The identify interprets to “tribute tea for the emperor” which suggests their substances are of the very best high quality that’s match for royalty. They’ve over 1,800 areas globally.
To franchise Gong Cha, anticipate the preliminary funding to be $177,430 to $335,400 with a franchise price of $41,500.
The milk tea business appears prefer it’s positioned to proceed rising in the USA for the remainder of the last decade. Early regional entrants into the house may gain advantage from a primary mover benefits.
