Tea Shop Business Plan
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We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Tea Shop businesses.
Below is a template to help you create each section of your Tea Shop business plan.
Executive Summary
Business Overview
Jane’s Tea House is a startup tea shop located in the heart of Rochester, New York. The company was founded by Jane Walton, a veteran caterer and tea enthusiast with a passion for blending and curating high-quality teas. Jane’s skill at commercial food service, and her knowledge of the aesthetics and atmosphere that create a special experience has given her the confidence to start and effectively grow a successful tea shop. Jane Walton believes her food service experience, connections, and wide and deep knowledge of catering special events will provide everything needed for long-term growth and profitability.
Jane’s Tea House aims to provide a unique experience for tea lovers. With a focus on organic and sustainably sourced teas, Jane’s Tea House will offer a serene environment for customers to enjoy a diverse range of teas from around the world. The shop will also host tea-tasting events, workshops, and offer a small selection of tea-related accessories and gifts.
Product Offering
Jane’s Tea House will offer a wide variety of loose-leaf teas, including black, green, white, oolong, herbal, and specialty blends. The shop will also serve freshly brewed tea and offer a “create-your-own-blend” station where customers can personalize their tea experience. Additionally, the shop will sell tea accessories such as infusers, pots, and cups, as well as packaged teas for home brewing.
Customer Focus
The primary target market for Jane’s Tea House will be tea enthusiasts and health-conscious consumers in Rochester and the surrounding areas. The shop will also cater to tourists seeking local experiences and unique products. The demographic will include individuals of all ages who appreciate the culture and health benefits associated with tea drinking.
Management Team
Jane’s Tea House will be owned and operated by Jane Walton. Jane graduated from Walnut Hill College in Philadelphia with an Associate’s Degree in Hospitality Management. Much of her career has centered around food service, advancing from line cook to executive chef, and then successfully running a catering company. She has also nurtured her passion for tea, traveling extensively to tea-producing regions to deepen her understanding of tea cultivation and processing. Jane will manage the day-to-day operations of the shop and lead the tea education programs.
Jane has recruited her domestic partner, Larry Reynolds, to manage the office for the retail aspect of the tea shop. Larry has co-owned the catering company with Jane, providing back-end support and financial management throughout the company’s duration. He will act in a similar capacity for Jane’s Tea House.
Jane has also recruited two college students, Olivia and Finley, to help on a part-time basis with front of house duties such as waiting tables during events and workshops, and helping with looseleaf tea sales.
Success Factors
Jane’s Tea House will be able to achieve success by offering the following competitive advantages:
- Friendly and knowledgeable team
- Variety of specialty products.
- Educational approach to tea consumption.
- Unique offerings like the Blend-Your-Own station.
- Jane’s extensive knowledge of and passion for tea.
Download the Tea Shop business plan template (including a customizable financial model) to your computer here <–
Financial Highlights
Jane’s Tea House is seeking $200,000 in debt financing to launch the shop. The funding will be dedicated toward securing commercial space and purchasing kitchen equipment and inventory. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs. The funding will be used as follows:
- Retail space build-out: $50,000
- Kitchen equipment, supplies, and materials: $75,000
- Three months of overhead expenses (payroll, rent, utilities): $25,000
- Marketing costs: $15,000
- Working capital: $35,000
The following graph outlines the financial projections for Jane’s Tea House.
Company Overview
Who is Jane’s Tea House?
Jane’s Tea House is a newly established specialty tea shop in Rochester, New York. The shop provides a unique experience for tea lovers, offering an unmatched variety of organic and sustainably sourced teas from around the world. The shop will also host tea-tasting events, workshops, and offer a small selection of tea-related accessories and gifts.
Jane Walton and Larry Reynolds have a history of operating a successful catering company together, and expect to bring this wealth of knowledge and experience to the new venture. The two will oversee the part-time staff, providing guidance and opportunities for continual improvement, ensuring the shop has happy staff that will in turn create happy customers.
Jane’s Tea House History
Jane’s Tea House is owned and operated by Jane Walton. She recognized a gap in the Rochester market for a specialty tea shop, and with inspiration from her travels and love for tea, founded Jane’s Tea House in 2024. Jane will leverage her catering expertise to create a unique experience for fellow tea lovers. Jane has gained the trust and commitment of several clients in advance of opening the new business and will sign contracts with key players when the company launches.
Since incorporation, Jane’s Tea House has achieved the following milestones:
- Registered Jane’s Tea House, LLC to transact business in the state of New York.
- Has a contract in place at one of the midtown buildings, for a retail space with a commercial kitchen
- Hired two part-time staff to work at Jane’s Tea House
Jane’s Tea House Services
Jane’s Tea House will offer the following products and services:
- A wide range of high-quality loose-leaf teas
- Freshly brewed tea and house-made pastries available for in-shop consumption or take-away
- Custom tea-blending station for personalized tea experiences
- Tea-tasting events, occasional High Tea service, and educational workshops
- A selection of tea accessories and gifts for purchase
Industry Analysis
Tea consumption in the United States has seen consistent growth, with an increasing demand for premium and specialty teas. Consumers are becoming more health-conscious and are seeking alternatives to coffee and sugary beverages. The trend towards organic and sustainable products further supports the potential success of a specialty tea shop like Jane’s Tea House.
The Specialty Food Stores industry, in which Jane’s Tea House operates, is expected to grow over the next five years to over $14 billion.
The growth will be driven by consumer demand, consumer wealth, macroeconomic conditions, and an increase in high quality product offerings. The specialty food market is rapidly increasing due to these factors, along with rising health consciousness.
Download the Tea Shop business plan template (including a customizable financial model) to your computer here <–
Customer Analysis
Demographic Profile of Target Market
Jane’s Tea House will target a diverse customer base that includes young professionals, health-conscious individuals, and older adults who appreciate the ritual and relaxation that tea provides. The shop will also appeal to college students from nearby universities and tourists looking for unique local experiences.
The precise demographics of Jane’s Tea House are:
| Total | Percent | |
|---|---|---|
| Total population | 1,680,988 | 100% |
| Male | 838,675 | 49.9% |
| Female | 842,313 | 50.1% |
| 20 to 24 years | 114,872 | 6.8% |
| 25 to 34 years | 273,588 | 16.3% |
| 35 to 44 years | 235,946 | 14.0% |
| 45 to 54 years | 210,256 | 12.5% |
| 55 to 59 years | 105,057 | 6.2% |
| 60 to 64 years | 87,484 | 5.2% |
| 65 to 74 years | 116,878 | 7.0% |
| 75 to 84 years | 52,524 | 3.1% |
Customer Segmentation
Jane’s Tea House will primarily target the following customer profiles:
- Daily tea drinkers looking for quality and variety
- Health-conscious consumers interested in the benefits of herbal and green teas
- Enthusiasts and connoisseurs seeking rare and specialty teas
- Individuals interested in learning about tea culture and preparation
Competitive Analysis
Direct and Indirect Competitors
Jane’s Tea House will face competition from other companies with similar business profiles. A description of each competitor company is below.
The Tea Chest
Established in 2011, The Tea Chest offers over 60 loose leaf Organic teas and herbal blends sourced from around the world. A member of “1% for the Planet,” the shop supports the Finger Lakes Land Trust, a non-profit that works for the preservation of the natural heritage of the region.
The shop collaborates with a range of other local small businesses to source coffee, baked goods, accessories, and related products. It also distributes tea to select cafes in the area.
The Tea Chest is open from 10:00 am to 6:00 pm on Tuesday, Wednesday, Thursday, Friday, and Saturday, and from 10:00 am to 4:00 pm on Sunday.
Upstate Tea
Upstate Tea, located in the Finger Lakes area, offers several types of high-quality tea, both for on-site consumption, and for off-site preparation. It offers several types of loose Red, Black, White, Green, Oolong, and Ripe teas, as well as over 30 types of flower (scented) teas. The company focuses on educating the public about tea, and is endeavoring to grow tea locally.
Upstate Tea has a shop open for tea tastings, where teas are available in various quantities, including 3 teas for $3.00, a pot of tea for $2.00 per person, and prices vary for teas sold by the ounce with a 2 oz minimum. Tea tastings are available for $3.00 per person, and a pot of tea costs $2.00 per person.
Tea Time New York
Tea Time New York offers a wide variety of loose leaf organic teas and herbal tea blends sourced from some of the finest tea gardens around the world. In addition to its brick and mortar location, the company maintains an online store where customers can view live inventory and pricing and place orders at any time of the day.
Tea Time New York is family-owned and operated since its founding in 1995 and is dedicated to partnering with farmers to provide high-quality, certified green coffee and tea. Furthermore, the company strives to help shape the future of coffee and tea professionals through robust course offerings.
Download the Tea Shop business plan template (including a customizable financial model) to your computer here <–
Competitive Advantage
Jane’s Tea House enjoys the following advantages over their competition:
- A wide selection of organic and sustainably sourced teas
- Knowledgeable staff led by a certified tea expert
- Unique in-shop experiences such as blend-your-own-tea and educational workshops
- A cozy and inviting atmosphere in which customers may relax and enjoy their tea.
Marketing Plan
Brand & Value Proposition
Jane’s Tea House will offer a unique value proposition to its clientele:
- Comprehensive menu of premium tea from around the world
- Sustainable sourcing and a focus on education
- Unique events that will appeal to tea connoisseurs and Anglophiles
Promotions Strategy
The promotions strategy for Jane’s Tea House is as follows:
Word of Mouth/Referrals
The Jane’s Tea House management team has built up an extensive list of contacts over the years of operating a catering business. The contacts and clients will follow them to this new company and help spread the word of Jane’s Tea House.
Professional Associations and Networking
Members of the management team will both join and assist in leading area and national trade associations and business groups that align with their business perspectives and values. The networking opportunities will grow as the management team members take on these new responsibilities and form collaborations with local and regional partners.
Print Advertising
One month and one week prior to opening Jane’s Tea House, a flyer will go out to all residents of the Rochester area. In addition, a business flyer will go to all small and medium-sized businesses within the city. This will be a duplication of information within a two-week period of time, which will alert and remind potential customers of the shop’s opening date.
Website/SEO Marketing
Jane’s Tea House will fully utilize their website. The website will be well organized, informative, and list all the products and services that Jane’s Tea House provides. The website will engage in SEO marketing tactics so that anytime someone types in the Google or Bing search engine “tea shop” or “tea shop near me,” Jane’s Tea House will be listed at the top of the search results.
Pricing
The pricing of Jane’s Tea House will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their services.
Operations Plan
The following will be the operations plan for Jane’s Tea House.
Operation Functions:
- Jane Walton will be the owner and president of the company. She will oversee all staff and manage client relations.
- Larry Reynolds will be the co-owner of the company, and will oversee all back office duties.
Download the Tea Shop business plan template (including a customizable financial model) to your computer here <–
Milestones:
Jane’s Tea House will have the following milestones completed in the next six months.
- 5/1/202X – Finalize contract to lease commercial space
- 6/1/202X – Finalize contracts for Jane’s Tea House renovation
- 6/15/202X – Begin networking
- 7/15/202X – Finalize moving into and setting up the store front
- 8/1/202X – Jane’s Tea House opens its doors for business
Management Team
Jane’s Tea House will be owned and operated by Jane Walton. Jane graduated from Walnut Hill College in Philadelphia with an Associate’s Degree in Hospitality Management. Much of her career has centered around food service, advancing from line cook to executive chef, and then successfully running a catering company. She has also nurtured her passion for tea, traveling extensively to tea-producing regions to deepen her understanding of tea cultivation and processing. Jane will manage the day-to-day operations of the shop and lead the tea education programs.
Jane has recruited her domestic partner, Larry Reynolds, to manage the office for the retail aspect of the tea shop. Larry has co-owned the catering company with Jane, providing back-end support and financial management throughout the company’s duration. He will act in a similar capacity for Jane’s Tea House.
Jane has also recruited two college students, Olivia and Finley, to help on a part-time basis with front of house duties such as waiting tables during events and workshops, and helping with looseleaf tea sales.
Financial Plan
Key Revenue & Costs
The main revenue streams will be the sale of teas and tea accessories, as well as revenue from workshops and events.
The primary costs will include rent, inventory, and employee wages.
Funding Requirements and Use of Funds
Jane’s Tea House is seeking $200,000 in debt financing to launch the shop. The funding will be dedicated toward securing commercial space and purchasing kitchen equipment and inventory. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs. The funding will be used as follows:
- Retail space build-out: $50,000
- Kitchen equipment, supplies, and materials: $75,000
- Three months of overhead expenses (payroll, rent, utilities): $25,000
- Marketing costs: $15,000
- Working capital: $35,000
Download the Tea Shop business plan template (including a customizable financial model) to your computer here <–
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 Per Month: 2750
- Average revenue per Month: $82,500
- Commercial Lease per Year: $100,000
Financial Projections
Income Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Total Revenues | $360,000 | $793,728 | $875,006 | $964,606 | $1,063,382 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $64,800 | $142,871 | $157,501 | $173,629 | $191,409 | |
| Lease | $50,000 | $51,250 | $52,531 | $53,845 | $55,191 | |
| Marketing | $10,000 | $8,000 | $8,000 | $8,000 | $8,000 | |
| Salaries | $157,015 | $214,030 | $235,968 | $247,766 | $260,155 | |
| Initial expenditure | $10,000 | $0 | $0 | $0 | $0 | |
| Total Expenses & Costs | $291,815 | $416,151 | $454,000 | $483,240 | $514,754 | |
| EBITDA | $68,185 | $377,577 | $421,005 | $481,366 | $548,628 | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| EBIT | $41,025 | $350,417 | $393,845 | $454,206 | $521,468 | |
| Interest | $23,462 | $20,529 | $17,596 | $14,664 | $11,731 | |
| PRETAX INCOME | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Taxable Income | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Income Tax Expense | $6,147 | $115,461 | $131,687 | $153,840 | $178,408 | |
| NET INCOME | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
Balance Sheet
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $30,000 | $33,072 | $36,459 | $40,192 | $44,308 | |
| Total Current Assets | $184,257 | $381,832 | $609,654 | $878,742 | $1,193,594 | |
| Fixed assets | $180,950 | $180,950 | $180,950 | $180,950 | $180,950 | |
| Depreciation | $27,160 | $54,320 | $81,480 | $108,640 | $135,800 | |
| Net fixed assets | $153,790 | $126,630 | $99,470 | $72,310 | $45,150 | |
| TOTAL ASSETS | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $315,831 | $270,713 | $225,594 | $180,475 | $135,356 | |
| Accounts payable | $10,800 | $11,906 | $13,125 | $14,469 | $15,951 | |
| Total Liability | $326,631 | $282,618 | $238,719 | $194,944 | $151,307 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| Total Equity | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| TOTAL LIABILITIES & EQUITY | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
Cash Flow Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | ||||||
| Net Income (Loss) | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 | |
| Change in working capital | ($19,200) | ($1,966) | ($2,167) | ($2,389) | ($2,634) | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| Net Cash Flow from Operations | $19,376 | $239,621 | $269,554 | $310,473 | $355,855 | |
| CASH FLOW FROM INVESTMENTS | ||||||
| Investment | ($180,950) | $0 | $0 | $0 | $0 | |
| Net Cash Flow from Investments | ($180,950) | $0 | $0 | $0 | $0 | |
| CASH FLOW FROM FINANCING | ||||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 | |
| Cash from debt | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow from Financing | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow | $154,257 | $194,502 | $224,436 | $265,355 | $310,736 | |
| Cash at Beginning of Period | $0 | $154,257 | $348,760 | $573,195 | $838,550 | |
| Cash at End of Period | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
Tea Shop Business Plan FAQs
What Is a Tea Shop Business Plan?
A tea shop business plan is a plan to start and/or grow your tea shop business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
You can easily complete your Tea Shop business plan using our Tea Shop Business Plan Template here.
What are the Main Types of Tea Shop Businesses?
There are a number of different kinds of tea shop businesses, some examples include: Loose leaf tea shop, Tea room or cafe, Tea bar, and Online tea shop.
How Do You Get Funding for Your Tea Shop Business Plan?
Tea Shop businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.
What are the Steps To Start a Tea Shop Business?
Starting a tea shop business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.
1. Develop A Tea Shop Business Plan - The first step in starting a business is to create a detailed tea shop business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your tea shop business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your tea shop business is in compliance with local laws.
3. Register Your Tea Shop Business - Once you have chosen a legal structure, the next step is to register your tea shop business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.
4. Identify Financing Options - It’s likely that you’ll need some capital to start your tea shop business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.
6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.
7. Acquire Necessary Tea Shop Equipment & Supplies - In order to start your tea shop business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.
8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your tea shop business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.