Bubble Tea Business Plan Template

Bubble Tea Business Plan

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Executive Summary

Business Overview

Goldenberry Bubble Tea Bar is a startup bubble tea shop located in Omaha, Nebraska. The company is founded by two friends, Chu Lin and Dave Zhu. Together they have over thirty years of experience in the food and beverage industries, from creating recipes and serving customers, to importing and exporting produce and desserts. They are highly skilled in restaurant management, creation of menu items, service to customers and are known for their integrity and leadership skills. They own two restaurants together in Omaha. With their extensive network of clients and connections, Chu Lin and Dave Zhu have decided to bring the famous bubble tea of Taiwan to Omaha, Nebraska.

 

Product Offering

The following are the products and services that the Goldenberry Bubble Tea Bar will provide:

• Custom bubble/boba ball tea beverages
• Traditional and custom tea beverages
• Blended ice cream or cream beverages
• Frozen fruitsicles and ice pops
• Imported desserts
• Customer dining area

 

Customer Focus

The Goldenberry Bubble Tea Bar will target customers who like to try new flavors and frozen desserts within the population of Omaha. In particular, the primary target will be young adults and teens, who are known to be most open to new foods and flavors. Secondary targets will include those who enjoy ice cream or fruit-based blended beverages. In addition, imported desserts will be offered to all. The Goldenberry Bubble Tea Bar will bring the best industry practices to their target audience, while delivering premium service and garnering high-yield profitability.

 

Management Team

Goldenberry Bubble Tea Bar will be owned and operated by Chu Lin and Dave Zhu. Together, they have over thirty years of restaurant experience, including establishing key food distribution channels in Taiwan and the U.S. They own three restaurants in Taipei, Taiwan and two restaurants in Omaha. Chu Lin and Dave Zhu have been lifelong friends who will be responsible for different areas of management in the business.

 

Success Factors

Goldenberry Bubble Tea Bar will be able to achieve success by offering the following competitive advantages:

• Friendly, knowledgeable, and highly-qualified partnership of successful restaurateurs.
• Unique natural ingredients and exciting new flavors are introduced to the target audience.
• Exotic menu ingredients, boba balls, bring new textures to beverages.
• Superior customer service, with friendly and well-trained team members.
• Maintaining the highest standards of cleanliness in all food preparation, use of equipment and the general premises of the business.

 

Financial Highlights

Goldenberry Bubble Tea Bar is seeking $200,000 in debt financing to launch its tea bar business. The funding will be primarily for building out the tea bar property location, purchasing blenders and food appliances, equipment for food preparation, indoor furnishing, computers and office supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, lease payments, and marketing costs for advertising and social media marketing.

The breakdown of funding is as follows:

• Building location build-out: $20,000
• Food equipment, appliances, computers: $10,000
• Overhead expenses: payroll, lease, utilities (3-months): $150,000
• Marketing costs: $10,000
• Working capital: $10,000

The following graph below outlines the pro forma financial projections for Goldenberry Bubble Tea Bar.

 

Company Overview

Who is Goldenberry Bubble Tea Bar

The Goldenberry Bubble Tea Bar is a newly established bubble tea beverage business in Omaha, Nebraska that specializes in unique beverages first discovered in the night markets of Taiwan. Partners Chu Lin and Dave Zhu, own five restaurants together and bring a highly-experienced cadre of leadership skills to build relevant profitability levels for investors. The unique value propositions of Goldenberry Bubble Tea Bar are the distinctive flavor profiles and exotic presentations of teas, ice cream, fruit beverages, and imported desserts to this experience. These offerings will appeal primarily to young adults and teens, due to the unique properties of the beverages, with the secondary targets of all ages, who will be attracted to the ice cream and fresh fruit offerings. There will also be a small dining area for customers.

 

Goldenberry Bubble Tea Bar Management History

The Goldenberry Bubble Tea Bar business consists of two experienced restaurateurs with distinctive areas of expertise:

Chu Lin is a restaurant owner who created bubble tea recipes while living in Taipei. With his childhood friend, Dave Zhu, a highly-experienced distributor in food import/export channels, their first investor group was formed to build two additional restaurants in Taiwan. Those investors earned twenty-eight percent on their investment within a four-year plan. Chu Lin and Dave Zhu then emigrated to the U.S., became citizens in 2005, and formed a legal partnership with 51/49 percent ownership shares. They purchased two additional restaurants in Omaha with investor support. Within a six year plan, investors earned twenty-four percent on their initial investments. The partners are experienced in leadership skills, client relationships, business development and general management. With the five restaurants currently providing long-term growth and success, Chu Lin and Dave Zhu want to bring the tastes of Taiwan to Omaha.

Since incorporation, Goldenberry Bubble Tea Bar has achieved the following milestones:

• Registered Goldenberry Bubble Tea Bar, a legal partnership, to transact business in the state of Nebraska.
• Holds two long-term, set-pricing contracts with import firms.
• Has hired the office manager for the business.
• Has secured the business location and built it out within budget and on time.
• Has hired and is training three part-time employees.

 

Goldenberry Bubble Tea Bar Products and Services

The following will be the products and services Goldenberry Bubble Tea Bar will provide:

• Custom bubble/boba ball tea beverages
• Traditional and custom tea beverages
• Blended ice cream or cream beverages
• Frozen fruitsicles and ice pops
• Imported desserts
• Customer dining area

 

Industry Analysis

• The bubble tea beverage industry in the U.S. is expected to grow over the next five years to $3 billion in revenue.
• Increasing numbers of coffee and tea drinkers have propelled the bubble tea business into popularity, particularly on the east and west coasts of the U.S.
• The wide variety of bubble tea beverages has strengthened the demand, due to an increasing number of beverage combinations and availability of fresh ingredients.
• Industry reports suggest bubble tea will continue to grow in popularity due to younger generations who prefer beverages sweetened naturally, including fresh fruit blends, and they also prefer cold beverages over dairy options, such as milk.
• Bubble tea is quickly growing in popularity and remains a sought-after beverage, which indicates a growing interest and rising opportunity for profitability within this industry sector.

 

Customer Analysis

Demographic Profile of Target Market

Goldenberry Bubble Tea Bar will target those individuals who are seeking new flavor profiles and unique textures within the beverage sector. These individuals will be, according to industry statistics, primarily young adults and teens, who are early adopters within these sectors, followed by all ages who enjoy cold or frozen beverages and ice cream beverages. Within the Omaha region, there are few direct competitors and one indirect competitor, none of whom have the depth of varieties of bubble tea on offer, and none who have the extensive menu of ice cream and fruit beverages blends.

The precise demographics for Omaha, Nebraska are:

 

Customer Segmentation

Goldenberry Bubble Tea Bar will primarily target the following customer profiles:

• Young adults and teens who want new flavor profiles and unique textures
• All ages who want frozen, blended beverages with tea or coffee
• All ages who want beverages with cream or milk
• All ages who want imported dessert specialties from Taiwan

 

Competitive Analysis

Direct and Indirect Competitors

There are currently two direct competitors and one indirect competitor for the Goldenberry Bubble Tea Bar in the city of Omaha, Nebraska. This creates a unique opportunity for this business as one of the first providers of this beverage product line.

 

Bergen’s Grocery & Deli Mart

This direct competitor is a mid-sized, local grocery store with an attached delicatessen and dessert shop. Situated in the city of Omaha, Nebraska, the grocery store is located ten miles from the location of the Goldenberry Bubble Tea Bar business. The grocery store sells ingredients that can be used to create bubble tea if the recipes were provided. The tapioca balls, known as bubbles or boba, are available at the dessert shop, and bubble tea is offered in three flavors. In addition, ice cream, ice pops and other items in the grocery store are alternatives to the offerings of the Goldenberry Bubble Tea Bar. The competitive advantage of the Goldenberry Bubble Tea Bar is found in the fresh ingredients of beverages, the customized recipes, and the boba balls that are offered. The dessert shop has an assortment of cookies, donuts, and cakes available; none are imported from Taiwan and none are identifiable as “specialties.” The owners of Bergen’s Grocery & Deli Mart, Dale Bergen and Marie Bergen, are the founders of the business who formed a C corporation at the time of incorporation.

 

The Wild Horse Coffee House

This coffee house, positioned seven miles from the location of the Goldenberry Bubble Tea Bar, is a direct competitor with a space that seats approximately twenty individuals. Bubble tea in three flavors is served, along with a variety of in-house roasted bean varieties of coffee. The wide selection of coffees lends itself to coffee beverages, however, none are cold or frozen and none include ice cream, cream, or are prepared with distinctive recipes. There are no desserts or specialties offered. Teas and tea beverages are offered at this location, along with wine and beer in a bar area. The legal entity formed for this business is a C corporation consisting of three equal shareholders; Denise Martine, Janell Martine, and Bruce Martine.

 

Mama Bear Coffee Shop

The Mama Bear Coffee Shop is an indirect competitor, although there is a service counter and a dining area offered, as does the Goldenberry Bubble Tea Bar. It is located seventeen miles from the location of the Goldenberry Bubble Tea Bar. Freshly-blended ingredients are not offered, although ice cream milkshakes are offered and blended on-site. No fruit juice blends or cream and tea beverages are available. No bubble teas are offered and tapioca balls are not available. Desserts include slices of pie, cake, and cookies. This business was founded by the owner, Jean Louise Tate, who formed a sole proprietorship in 1990.

 

Competitive Advantage

• Goldenberry Bubble Tea Bar has very few direct competitors at this time. Two direct competitors are within the Omaha area, however neither serves more than three options for bubble tea and no other fresh fruit or frozen beverages are offered. Because of this, there is a significant competitive advantage over any competitors.
• Exceptional bubble tea beverages in a wide variety of flavors are made with fresh ingredients and offered at reasonable prices.
• The dessert specialties sold through the Goldenberry Bubble Tea Bar are imported and not found in most businesses within the U.S. and, as such, constitute another unique offering of this business.
• The friendly and helpful staff members at the Goldenberry Bubble Tea Bar bring a warm environment to the business, as they help customers make informed choices of exciting and unique beverages.
• The partners bring vast experience, individual strengths and a successful capital raising background into the business.

 

Marketing Plan

Brand & Value Proposition

Goldenberry Bubble Tea Bar will offer the unique value proposition to its clientele:

• As one of very few providers of bubble tea in Omaha, Nebraska, the Goldenberry Bubble Tea Bar is in the enviable position of offering a unique value proposition by introducing the tea with tapioca bubble (or boba) balls in several flavors to the geographic area.
• The partners of this business bring vast relevant experience in capital raising, key areas of management, business development, recipe creation, restaurant experience and import/export channel contracting.
• A skilled team of employees is in training to provide superior customer service, particularly as the primary ingredients of the beverages may be an “unknown” to first-time customers.
• The business includes an area for customers to sit and relax after making a purchase at the counter, which encourages conversation and community interaction.
• Pricing for all beverages and desserts is moderate and reasonable; there are no beverages over the five-dollar price point.

 

Promotions Strategy

The promotions strategy for the Goldenberry Bubble Tea Bar is as follows:

Social Media Campaign

With the primary demographic target of younger adults and teens during the first phases of the business, the promotion will focus on posts on Twitter, Facebook and Instagram. Product images, photos and graphics will announce the launch of the business. The use of engaging or humorous video reels will also be employed to bring the bubble tea to the attention of potential clientele. A social media marketing manager will provide part-time services for three months.

Website – SEO Marketing

A website developer and designer will construct the website, which will be attractive to all target audience sectors and will conform to the brand identity and messaging across all platforms. Working with the social media marketing manager, SEO marketing will be utilized to bring messages of the launch, announce the purpose of the business, and reveal plans of the Goldenberry Bubble Tea Bar. Images and graphics directed to the demographic target audiences will be included. Menu items and product descriptions will be included. Launch Day discounts will be offered.

Print Advertising

In a ten-mile radius around the business location, flyers designed to fit the same configurations and the website and social media campaign will be distributed to homes, places of business and community centers with announcements and discounts for purchases. This will position the launch as an event with a purpose to the general public and cater to the residents who will optimally become regular repeat customers.

 

Pricing

As a new beverage product line, previously unknown to most consumers, introductory pricing will be reasonable and moderate, on par with the direct competitors within the region. Goldenberry Bubble Tea Bar has two direct competitors; to overcome their offers and entice first-time buyers, the introductory pricing for beverages will be discounted for the first month of business in operation.

 

Operations Plan

The following will be the operations plan for the Goldenberry Bubble Tea Bar.
Operation Functions:

• Chu Lin and Dave Zhu will share the legal partnership of the company with 51/49 percent ownership shares. They will conduct day-to-day operations, oversee all staff and manage vendors, product suppliers.
• Chu Lin and Dave Zhu will seek investor funding to open two additional locations; offering advantageous returns for early investors.
• Chu Lin will develop new recipes and continue expanding the product line of offerings.
• Dave Zhu will oversee imports, product supply and will lead capital-raising efforts.
• Kayla Blackburn, in the role of office manager, will oversee day-to-day operations.

Additional staff include:

• Mia Lorenz – Human resources coordinator who will onboard and train employees.
• Kevin Glick – Maintenance supervisor who will oversee cleaning and upkeep of facilities and grounds.

 

Milestones:

Goldenberry Bubble Tea Bar will have the following milestones complete in the next four months:

• 4/1/XX – Finalize contract for lease and equip for business
• 4/15/XX – Finalize personnel and staff employment contracts for the Goldenberry Bubble Tea Bar
• 5/1/XX – Marketing campaigns on social media begin; website development begins
• 5/10/XX – Final beverage testing and employee training
• 5/15/XX – Launch of business; location opened

 

Management Team

The Goldenberry Bubble Tea Bar will be owned and operated by Chu Lin and Dave Zhu, in a legal partnership.

The company is founded by two friends, Chu Lin and Dave Zhu. Together they have over thirty years of experience in the food and beverage industries, from creating recipes and serving customers, to importing and exporting produce and desserts. They are highly skilled in restaurant management, creation of menu items, service to customers and are known for their integrity and leadership skills. They own three restaurants together in Taipei and they own two restaurants together in Omaha. With their extensive network of clients and connections, Chu Lin and Dave Zhu have decided to bring the famous bubble tea of Taiwan to Omaha, Nebraska.

Additional key employees include:

• Kayla Blackburn – in the role of office manager, who will oversee day-to-day operations.
• Mia Lorenz – the human resources coordinator, who will onboard and train employees
• Kevin Glick – the maintenance supervisor of cleaning and upkeep of facilities

 

Financial Plan

Key Revenue & Costs

The revenue drivers for the Goldenberry Bubble Tea Bar are the monies that will be charged to the customers of the food offerings sold in the tea bar, including all beverages and dessert specialities. Competitors, either direct or indirect, may charge up to twenty-five percent more for offerings while the Goldenberry Bubble Tea Bar will charge a reasonable, moderate price below that of any competitor.

The cost drivers will be the overhead costs required in order to staff the tea bar and pay for inventory food items. The expenses will be the payroll cost, lease payments, utilities, office supplies, and marketing costs.

 

Funding Requirements and Use of Funds

The Goldenberry Bubble Tea Bar is seeking $200,000 in debt financing to launch its bubble tea bar business. The funding will be dedicated toward securing the location and purchasing the furnishings, equipment and food inventory to conduct business. Funding will also be dedicated toward three months of overhead costs to include: payroll of the staff, lease payments, food inventory, and marketing costs for the campaigns. The breakdown of funding is as follows:

• Building location build-out: $20,000
• Food equipment, appliances, computers: $10,000
• Overhead expenses: payroll, lease, utilities (3-months): $150,000
• Marketing costs: $10,000
• Working capital: $10,000

 

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan:

• Number of customers served per month: 1,200
• Revenue per average sale: $14
• Revenue per month: $16,800.
• Lease per Year: $42,000

 

Financial Projections

Income Statement

Balance Sheet

Cash Flow Statement

Bubble Tea Bar Business Plan FAQs