How to open a teahouse from scratch
The constant growth of the army of lovers of this ancient drink creates a favorable environment for the development of entrepreneurial activity. A well-formed business plan avoids many sharp edges.
Market and Competitor Analysis
This section is a required part of this document. Analysis of the market situation not only attracts the attention of a potential investor, but also allows you to understand many difficult situations.
A well-organized advertising campaign can significantly increase the number of customers. The secret of business success lies in the fact that advertising should contain information not about a particular type of tea, but about a specific elite tea shop. Based on this, the consumer develops the opinion that each presented variety has a unique taste and unsurpassed aroma.
Analysis of the main competitors is necessary in order to:
- develop a marketing strategy for the most effective product positioning;
- predict a sales plan;
- determine the optimal assortment and develop a product policy;
- correctly set prices for products;
- develop a product: select properties and key characteristics of a product;
- think over a promotion strategy.
For detailed instructions on how to develop a document, see the following video:
This area assumes the start of activities in accordance with one of the following formats:
- A freestanding store with a rich assortment. Most buyers tend to buy an expensive elite variety only to be proud to offer it to guests. Starting with this option is the most difficult. The area of the room should be chosen based on the amount of equipment, assortment, display cases. In the store, you can sell not only tea, but also related products. Alternatively, you can even put several tables and organize a small cafe.
- Tea shop. The main distinguishing feature of this format is the predominance of placer tea. For the price, it costs a little more than the usual one, which becomes imperceptible against the background of a wider assortment and unique taste. The amount of capital investment increases in proportion to the increase in the cost of production. Rent has no less influence.
- Tea department. Novice businessmen prefer this option, since there is no need to look for a large room for it, the main thing is that the place is crowded and highly passable. The costs are much lower than if they were planning to open their own store. In the future, you can open several more departments in other parts of the city and organize a small network of your own.
It is best if the store is located in the area where people who consider themselves to be middle class live and work, as well as where there is the greatest concentration of "office plankton". It is better to delete the working microdistrict and the industrial zone from the list, since the primary goal of the entrepreneur is to earn money, and not to introduce the culture of tea consumption into the masses.
Opening a teahouse from scratch is possible, the main thing is to approach business wisely. Tea has always been considered an exquisite drink that has not lost its relevance over the centuries. The variety of flavors and varieties of tea only increases interest in it. In many countries of the world, tea drinking has become a tradition, and brewing a drink has become a whole ritual.
No wonder teahouses are so popular. But legitimate questions arise. How to organize a tea business so that it is not unprofitable? Where do you need to start your business? How to write the right business plan? What nuances should you pay attention to when opening a teahouse from scratch?
Individual peculiarities of tea business
The business associated with the tea business is unique and aimed at a certain circle of people who love and understand exquisite varieties of tea. After all, the cost of many elite teas is high, so whether your teahouse will thrive depends on the number of customers who can pay for good tea.
What to focus on when opening a tea house:
- A tea shop will only be popular if the product is of high quality. There are so many fakes on the market.
- High level of customer service with an individual approach to everyone. This primarily includes an explanation of the taste of each variety and advice on choosing the right one.
- The right staff is half the battle. Therefore, each of the hired distributors must understand the entire assortment of goods, know the advantages of each type and be able to correctly convey information to the client.
- Regular promotions and other marketing activities should be carried out to draw attention to the teahouse. Expand your customer base by attracting new ones through good advertising.
Is it profitable to open a tea house? You will be able to answer this question only after careful research of the market. For example, it is better to organize such an enterprise in large cities, and not in small villages, where there are hardly any connoisseurs of rare tea, and even more so they will be able to pay for it.
In which format is it more profitable to open a tea house?
Having decided to organize a tea house from scratch, every businessman must decide on the format of the future business. There are several options for organizing a tea shop, and each requires specific conditions.
- The largest in terms of organization is the store with a separate tea tasting area. The advantage of this approach is the ability for the client to immediately evaluate the taste characteristics of one or several types of tea. In the future, such a store can expand into a tea cafe and increase profits. The other side of this teahouse option: it will require a lot of investment:
- room decor;
- a rich assortment of goods and related products for making tea, such as teapots, cups, etc. < / ul>
- Opening an ordinary tea shop without the opportunity to taste tea will require less expenses, but it can be located in the city center by renting a small space. And much less permits will be required. There is also no need to purchase certain equipment. The cost of repairs and staff wages will decrease.
- The cheapest will be to open an ordinary tea stall, for example, in a shopping center. This type of business will help those entrepreneurs who wish to assess the profitability of the tea industry, to find out if tea is popular and which types of tea are in greater demand. After work, the entrepreneur will be able to assess profitability and, in the future, open a teahouse with less losses.
To determine the choice of a suitable business solution, it is worth assessing the possible risks, the existing competition and the narrowness of the demand in the city where you plan to open a tea house from scratch.
This article was created on the advice and features of personal experience, which Ivan Peregudov, owner of the Chinese Tea chain of tea shops from the Moscow region, kindly shared with the readers of the Russian Startup magazine.
Important advice from Ivan # 1 Many aspiring entrepreneurs, when opening their tea shop, think that the most important thing is a business plan, a beautiful sign, a modern room, a smiling and cultured staff, etc. I do not argue - this is really all very important, but this is not at all the main thing. The main thing is your customers. Or rather, it is the base of your customers. If your store does not have such a base and there is nowhere to get it, it is better not to start a business. Tea lovers, a special caste of people who understand tea, love it and who will go to the ends of the world to buy even a pinch of tea, are not a signboard and not a passable place. Those who will not go to your store for any kind of gingerbread (and it’s even useless to invite them to your place) buy tea at Auchan or Dixie and don’t worry about its quality and taste at all.
Of all the liquids consumed by mankind, tea takes the second place, second only to drinking water. This is a unique, healthy drink rich in vitamins. And how to start a tea business is described in this article.
Tea business from scratch: trends, facts, types of tea
Tea is classified according to several criteria:
- by color - black, green, white, yellow, red;
- by machining method - loose (long), pressed (in the form of briquettes), instant (extracted - the usual tea bags);
- by leaf size - large, medium, small-leaved (granular);
- by packing method: packed and in bulk by weight;
- according to the composition of ingredients - pure tea leaves, tea blends (mixtures of several varieties), herbal, fruit and berry mixes, tea-like drinks from South Africa (honibushi, rooibushi) that do not contain tannin, caffeine.
Black tea accounts for 90% of the market, the remaining 10% belongs to green and other varieties.
Cheap substitute tea in bags is gradually losing ground in comparison with the consumption of high-quality, natural, large-leaf type, the demand for which has grown by 90% over the past 3 years.
Russia takes the first place in the world in tea import.
Top-7 world suppliers (in descending order of volumes of exported products) - Sri Lanka, India, China, Kenya, Vietnam, Indonesia, Azerbaijan. Tea is bought almost all year round.
The peak of sales is observed in the cold, winter period, in the summer there is a slight decline, during this period, instead of traditional varieties, sales of light fruit and berry, herbal mixtures increase. The increase for these drinks is about 10% annually.
How to open your own tea boutique?
Benefits of a business idea:
Shops selling tea are in demand among buyers. Customers are attracted by original boxes and packaging. In Russia, about 85% of people drink this drink every day, so the demand for it will always be stable. This article explains how to start a tea business from scratch.
The business idea of a tea shop is in demand, but trading in this product is considered a specific occupation. Russian consumers are accustomed to cheap, low-quality, flavored products. For many, raspberry or lemon-flavored sachets are the best that can be. It is unlikely that they will buy real tea with an original taste, which has a high price, so marketing in this area is an important aspect.
Today it is difficult to find people who are competent in this area, therefore, real professionals should be hired who will be able to explain to consumers the benefits of a quality drink. Before starting a tea business from scratch, it is important to familiarize yourself with the peculiarities and nuances of this direction.
To start a business, you need investments, but they pay off in a short time. For a tea shop to be successful, a business needs to be built by setting clear goals and achieving them. If there is no knowledge and experience in this area, you can start with a franchise. Thanks to her, the help of specialists is provided. When all the work processes are clear, you can open another point, but on your own, without using the name of a well-known brand.
Pros and Cons
Is it profitable to open a tea business or not? To do this, you should familiarize yourself with the advantages and disadvantages of this idea. Among the advantages are:
- Not very high initial capital. There is no need to purchase expensive equipment, rent a room and buy a large batch of goods.
- Tea is not considered perishable, so it does not need special storage conditions. Do not worry about the time during which the product will be sold.
- The demand for products does not depend on seasonal fluctuations.
- Related products may be sold with tea.
- If you open a tea shop, the business will be prestigious. No one will be indifferent to aromas.
High competition is one of the shortcomings. A green tea business is a highly profitable business. With a careful approach, it will go well.
Specialized tea shops are in fairly steady demand. Original boxes and bright packaging attract casual buyers, forcing them to make unplanned purchases. In our country, about 85% of the population drink tea every day, so the demand for such a product remains stable in any economic environment. In this article, we will tell you in detail how to start a tea business from scratch in Russia.
Peculiarities of the tea business
What small business is hot right now in 2021? Everything related to popular goods and services, including tea. But do not forget that trade in such products is a rather specific occupation. Domestic consumers are used to cheap, low-quality goods with various flavors. Many people consider raspberry or lemon flavored tea bags to be the pinnacle of perfection. They are unlikely to buy real tea with a pleasant taste, which costs several times more. Based on this, we can conclude that marketing in the tea business is a very important aspect that requires special attention. Nowadays, it is difficult to find people competent in this area, so you must hire real specialists who can convey to consumers all the benefits of quality tea.
Before starting a tea business from scratch, you need to understand all the features and nuances of this line of business. Tea is always in demand as it is difficult to find someone who does not like this delicious aromatic hot drink. In order to open a tea shop business, you will need certain investments, but they will pay off in the shortest possible time. For your business to be successful, you need to set a clear goal and gradually move towards it.
If you don't know anything about this industry, start with a franchise. Thanks to this, you will be able to get the necessary knowledge and help from specialists at the initial, most difficult stage. After you understand all the processes, you can open another outlet, but on your own, without using well-known brands.
Advantages and Disadvantages
What business is currently relevant in 2021 amid the crisis in Russia? This question cannot be answered unequivocally. Experts recommend choosing an area related to essential goods. They assess the tea trade as a business with high profitability, so you will not lose if you start working in this direction.
- Summary. At this point it is necessary to describe the goal of the project, the approximate amount of initial investment and key financial indicators of the project;
- A small description of the industry and company;
- Description of the product. What is included in the assortment of the outlet;
- Sales and marketing. Marketing strategy development;
- Production plan. Equipment and personnel;
- Organizational plan. Distribution of responsibilities;
- Financial plan. Costs and profits;
- Evaluation of the project's effectiveness;
- Risks and guarantees.