Many have asked, is Milk Tea a successful startup company in the Philippines? With the increasing competition right now, do you think it would be profitable to start a Milk Tea Shop? What do you think?
If you’re planning to start your own Milk Tea Business and set up your own brand, you need to be very careful as you could lose a lot of money if you don’t get the proper training to do so.
Why Milk Tea is Popular in the Philippines?
Have you ever had a craving for Milk Tea?
Milk tea has become popular in the Philippines for several reasons:
- Trendy Culture: Milk tea has been embraced by the youth culture as a trendy and fashionable drink. This has helped to popularize the beverage in the Philippines and establish it as a must-try drink among the younger generation.
- Availability: In recent years, many milk tea shops and franchises have opened in the Philippines, making it easier for people to access the drink. This has helped to increase its popularity as more and more people are able to try it for themselves.
- Affordable prices: Milk tea is often seen as an affordable luxury in the Philippines, making it a popular choice for people looking for a treat without breaking the bank.
- Tasty Variations: Milk tea shops in the Philippines often offer a wide variety of flavors and toppings, including boba (tapioca pearls), pudding, and jelly, making it a fun and customizable treat.
- Social Media Influence: Milk tea has been widely popularized on social media platforms, with people sharing pictures of their favorite drinks and promoting the trend to their followers.
- Climate: Philippines is known to have a humid and hot climate which is great for having a refreshing drink like Milk Tea.
- Sweet Tooth: Filipinos have a sweet tooth, which is a major reason why we are constantly craving milk tea.
In conclusion, the popularity of milk tea in the Philippines can be attributed to a combination of factors, including trendy culture, availability, affordable prices, tasty variations, social media influence, climate and taste preference.
How much does a Milk Tea Shop earn in a day?
Let’s do the math.
Let’s say your shop is so lucky that sells around 300 cups per day and the average cost per cup is 80-100 pesos, you will earn a whooping 25,000 to 30,000 pesos just for one day! Sounds good right?
What if you are merely selling 20 to 50 cups a day? You will then earn around 2,000 to 5,000 pesos a day. That’s not bad for a start up, because you can earn 15,000 to 30,000 pesos a week.
But take into account other costs such as power, employee wages, equipment, ingredients, rent and other items. Would it break-even or make a profit?
The daily earnings of a milk tea shop in the Philippines can vary greatly depending on several factors such as location, size of the shop, menu offerings, target market, and competition.
What if you had a bad start? let’s say you can only sell 10 cups per day and earns about 7,000 per week?
The question is, are you ready to take a risk?
We’re not here to scare people, but we wanted to say it’s better to be prepared and knowledgeable first before you take something you have no experience with.
A small milk tea shop in a residential area may earn around 10,000 to 20,000 pesos per day, while a larger, more established shop in a commercial district could earn upwards of 50,000 to 100,000 pesos per day.
It’s also important to consider that these numbers are subject to change, as the milk tea market in the Philippines is highly competitive and there may be fluctuations in demand and pricing. Ultimately, the success of a milk tea shop will depend on its ability to attract customers, provide quality products, and efficiently manage its operations.
How much to open a Milk Tea Shop in the Philippines?
If you want to start your own Milk Tea Shop, you will invest for about 30,000 to 100,000 pesos but this is just a rough estimate. It depends on how big you want to start.
The cost of franchising a milk tea shop in the Philippines can vary greatly depending on a number of factors such as the size of the shop, location, brand reputation, and franchise fees.
Most small franchising companies offers 30,000 to 300,000 pesos packages. How about the big ones?
Below is the franchising fee of the famous Milk Tea Brands in the Philippines:
- Macao Imperial Tea – Franchise Fee is 1.5 Million pesos
- Gong Cha – Franchise Fee is 1.5 Million pesos
- Coco Fresh Tea & Juice – Franchise Fee is 1.7 Million pesos
- Happy Lemon – Franchise Fee is 1.7 Million pesos
- Serenitea – Franchise Fee is 1.7 Million pesos
- Chatime – Franchise Fee is 2.5 Million pesos
These figures are just franchise fee alone. Initial investment would cost you around 3 to 10 Million pesos.
This cost typically includes the franchise fee, training fee, equipment and supplies, initial inventory, marketing and advertising costs, and other miscellaneous expenses. Keep in mind that these costs can vary based on the specific franchise agreement, so it’s important to carefully review and understand all the terms and conditions before signing a franchise agreement.
Additionally, it’s also important to consider ongoing costs such as royalties, marketing fees, and ongoing support from the franchisor. To get a more accurate estimate of the costs associated with franchising a milk tea shop in the Philippines, it is best to contact the franchisor directly and request information on their franchising program.
How to start a Milk Tea Shop in the Philippines?
Here’s a quick guide in starting a Milk Tea Business
Invest in Training
Knowledge is power. Knowing the in and outs in starting a business is a good foundation to help you achieve your goals.
Make sure to attend seminars and training to help you become more knowledgeable.
Be Unique
Franchising is good but why not put your own brand? This is your chance to unlock your creative side. Sometimes it’s worth the risk to create your own brand, design, strategy and more. Many businesses did this and some of them became successful.
Find a Good Franchise
If you don’t have much time to put up your own brand, you may look for a reputable franchising company in the market. First, do research in selecting the best franchise business in the market as there are a lot of milk tea shops offering franchising in the market. Ask your family, friends, colleagues if they know some companies worth betting on.
Inquire, inquire, inquire. Compare the packages presented to you. Make sure to choose wisely and that is within your budget.
Choose the franchising company that will continue to help you and direct you. Don’t settle for anything less. Make sure that the company will not only support you from the beginning but will support you endlessly. You could ask other franchisors about their experience to get an idea.
Find the Best Location
So where’s the best location to put your Milk Tea Shop? Below is a list of locations that have a better chance of attracting customers:
- Near the Schools
- Office Buildings or BPO Companies
- Transport Areas
- Shopping Centers or Malls
- Avenue that has good concentration of people
Check the place if there’s a lot of existing Milk Tea Shops.
Take Care of Your Employees
If you’re a good manager, your employees will be inspired to do their best in their work.
Good Product Photos
Did you know that customers will be enticed to buy if they see those delicious-looking photos of your products on your social media page?
It is also worthwhile to invest in product photography! You can either hire a professional product photographer or do it yourself if you have the necessary tools.
Maintain Cleanliness
Those awesome photos of your products will be useless if your shop is filthy.
Because COVID-19 has spread throughout the country and the virus cannot be seen by the naked eyes, we must ensure that our product handling is completely safe.
We must not act as a reservoir, but rather work to prevent the spread of the virus.
Marketing
Don’t forget to use social media as your marketing tool. Create a business page on Facebook and Instagram so that you could reach thousands of people.
Social Media Accounts Must-have for Businesses:
- Facebook Page – Reach thousands of people including your Family, Friends and others.
- Instagram – This is the #1 in establishing brand. Create a wonderful Instagram feed to entice your customers to buy and try your products.
- TikTok – You can share product videos on Tiktok and reach thousands of Gen Z and Millennials!
- Twitter (Optional) – You can post updates on Twitter too!
- Viber (Optional) – Most known brands use viber to send updates to their loyal followers.
Invite Bloggers or Social Media Influencers
These people have plenty of fans who follow them on social media and you are most likely to get strong advertisement for your goods.
To wrap it up, a good foundation is the key to success. Don’t stop learning! Good luck on your Milk Tea Business!
You may also want to read about Milk Tea Business Action Plan
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Last Updated on 13 Feb 2023 by Cup Community
