1. Putting up a kiosk for a start-up business will require a lot of resources, have you taken that into account? How?
Establishing a business demands careful consideration of resources, including time, money, and human resources, particularly if it involves putting up a physical kiosk. The following is how I would go about the planning process to make sure that all required resources are considered:
Financial Planning: Evaluate all of the expenses related to establishing the kiosk business. This covers charges for things like inventory, equipment and supplies, permits and licences, marketing and advertising, utilities, employee compensation, and kiosk space leasing or lease. Create a thorough budget to account for both initial and ongoing expenses. I can get a bank loan or a loan from family/relatives to cover my startup costs.
Market Research: To determine the level of demand for bubble tea business at the kiosk location, conduct market research. Examine variables including foot traffic, customer preferences, competition, and demography to determine the business’s feasibility and future profitability.
2. What is the specific demographic that you think you can sell your product the most?Â
Milk tea is popular among a wide range of age groups, from teenagers to young adults and even older demographics. The majority of bubble tea consumers are between the ages of 18 and 34. This group of people is more likely to be open to trying new foods and drinks and to be on the lookout for emerging trends.
3. Given that Milk teas were in general very sweet, do you have plans on making it somewhat healthier to appeal to health-conscious customers?
I have options for sugar level, 0%, 30%, 60% and 100% based on customer’s preference.
4. Based on your marketing structure and plan, when should you get your ROI?
Simply multiply your average selling price per cup by the average number of cups sold each day, and then multiply the result by roughly 350 days to determine my annual revenue.
Therefore, businesses selling bubble tea for $5 a cup on average and producing roughly 100 cups a day would bring in about $175,000 annually ($500 per day multiplied by 350 days).
We must deduct our expenses from our yearly revenue in order to arrive at our annual profit.
5. How did you come up with the price of $6.99 and $7.99? Why do you think this is an acceptable price for your target market?
A typical cup of milk tea in Canada costs between $5.99 and $8.99, and for that much, you’re getting just ordinary tea, milk, and boba balls. Regarding my milk tea, you have the option to add custard, colored boba balls or jelly. Teenagers and young children who want to experiment with topping selections are my target market. Therefore, the $6.99 and $7.99 prices are reasonable.
6. What keeps your product special from other bubble teas? Â
What keeps my product special from other bubble tea is that you can customize the toppings that you can put on your milk tea.
7. How do you collect and analyze feedback from customers to improve your products and services continually?
I can collect feedback from customers by setting up a survey that will give them a 20% discount on their next purchase.
They can just scan a QR code from the store or from the receipt, answer the survey then a code will be generated that they can use to redeem their 20% discount.
8. Regarding the key resources, I think you missed the important thing like food safety. This is required to have especially when your business is about food or anything that people will eat or drink.
Food safety certification will be required to everyone who will be working at the business.
9. With your marketing strategy, instead of 5 P’s you just make 4 P’s. P for people is missing in there.
“People” can be a useful addition to the standard marketing mix, which focuses on knowing and meeting the demands of my target audience. The four Ps of the marketing mix are product, price, place, and promotion.
10. In your behavior, I noticed that you stated there that you do customization such as adding toppings. Would tapioca pearls be the same price with the gelatin? Kindly clarify because in your price you only input the additional price for the gelatin. How about the tapioca pearls?
Yes it will have the same price as the tapioca pearls, jelly, gelatin or pudding.
11. With regards to your pricing, How do you plan to stand out and establish a unique identity in the competitive tea market despite having almost similar pricing structure to existing businesses?
In a crowded tea market, creating a distinctive brand and making an impression demands more than price alone. Here are a few strategies I could use to set the business apart.
Emphasis on High-Quality Ingredients: I can differentiate my business from rivals who could place a higher priority on cost-cutting strategies by using of high-quality tea leaves, natural sweeteners, and premium toppings.
Customizable toppings: Offering a diverse range of toppings can attract customers looking for something new and exciting. In doing so, it can help create a distinct identity for the business.
Personalized Customer Experience: Providing exceptional customer service and creating a welcoming atmosphere can foster customer loyalty. Giving options for customization can improve the entire experience. Some examples of customization include changing the amount of sweetness, lessening the ice or making personalized recommendations.
Community Engagement: I can establish a strong client base and effectively integrate my brand into the local community by actively participating in local events, sponsoring community activities, and forming partnerships with nearby businesses.
12. How will your bubble tea shop ensure the ethical sourcing of its ingredients, particularly the tapioca pearls? Do you already have an idea where to get it?
Running a responsible and sustainable bubble tea shop does need ensuring the ethical sourcing of materials like tea and tapioca pearls. Here’s how I would go about doing this:
Research for Providers: Identify providers who place a high value on ethical sourcing by conducting in-depth research. Seeking suppliers who are open about their labor policies, environmental effect, and sourcing strategies is part of this.
Certifications and Standards: Prioritize vendors who meet globally accepted standards for ethical sourcing or who possess certifications. Accreditations like Rainforest Alliance, Fair Trade, or organic certifications signify a dedication to ethical labor methods, ecological sustainability, and superior quality.
Direct Sourcing: Build direct ties with cooperatives or producers of tea and tapioca pearls whenever possible. Direct sourcing promotes partnerships based on accountability and trust while enabling increased transparency in the supply chain.
13. You stated in your Geographic marketing segmentation, that milk tea is consumed worldwide. Do you have data or evidence to support this claim?
This information is taken from Gitnux Market Data Report 2024.
“Bubble tea has become a popular beverage around the world, with its global market estimated to be valued at $2.4 billion in 2019 and projected to reach $3.49 billion by 2027. The Asia Pacific region dominated the bubble tea market with 57.4% of total share in 2019, while China had 64,600 bubble tea shops that same year. Fruit flavor was the most popular type of bubble tea accounting for 38.2% of overall market share in 2021 and is expected to be the fastest-growing segment between 2021-2027 as well.
In terms of consumption statistics, 40% of US customers are aged 18-24 years old; 70% choose tapioca pearls as their topping; 25000 stores are predicted by 2022; 58.9 % European respondents drink it once a month or more often; 880 annual growth rate is forecasted for Australia over 5 years period (2021–2026); 62 % female consumers from USA prefer this beverage ; 205 million USD size will have US Bubble Tea Market till 2027 ; 17 percent increase happened during 2018 -2019 among UK’s store numbers , 9 .5 percent held Yi Dian Dian brand on Chinese markets since 2018 and 73 per cent Canadians consume it occasionally or several times weekly . Chatime opened 2500 stores across 38 countries since 2005.”
These facts demonstrate how much people enjoy drinking bubble teas all over the globe.
<Lindner, J (2023), “The Most Surprising Bubble Tea Consumption Statistics And Trends in 2024”, https://gitnux.org/bubble-tea-consumption-statistics/, Accessed on 12 March 2024>
FAQ’S
1. Putting up a kiosk for a start-up business will require a lot of resources, have you taken that into account? How?
Establishing a business demands careful consideration of resources, including time, money, and human resources, particularly if it involves putting up a physical kiosk. The following is how I would go about the planning process to make sure that all required resources are considered:
Financial Planning: Evaluate all of the expenses related to establishing the kiosk business. This covers charges for things like inventory, equipment and supplies, permits and licences, marketing and advertising, utilities, employee compensation, and kiosk space leasing or lease. Create a thorough budget to account for both initial and ongoing expenses. I can get a bank loan or a loan from family/relatives to cover my startup costs.
Market Research: To determine the level of demand for bubble tea business at the kiosk location, conduct market research. Examine variables including foot traffic, customer preferences, competition, and demography to determine the business’s feasibility and future profitability.
2. What is the specific demographic that you think you can sell your product the most?Â
Milk tea is popular among a wide range of age groups, from teenagers to young adults and even older demographics. The majority of bubble tea consumers are between the ages of 18 and 34. This group of people is more likely to be open to trying new foods and drinks and to be on the lookout for emerging trends.
3. Given that Milk teas were in general very sweet, do you have plans on making it somewhat healthier to appeal to health-conscious customers?
I have options for sugar level, 0%, 30%, 60% and 100% based on customer’s preference.
4. Based on your marketing structure and plan, when should you get your ROI?
Simply multiply your average selling price per cup by the average number of cups sold each day, and then multiply the result by roughly 350 days to determine my annual revenue.
Therefore, businesses selling bubble tea for $5 a cup on average and producing roughly 100 cups a day would bring in about $175,000 annually ($500 per day multiplied by 350 days).
We must deduct our expenses from our yearly revenue in order to arrive at our annual profit.
5. How did you come up with the price of $6.99 and $7.99? Why do you think this is an acceptable price for your target market?
A typical cup of milk tea in Canada costs between $5.99 and $8.99, and for that much, you’re getting just ordinary tea, milk, and boba balls. Regarding my milk tea, you have the option to add custard, colored boba balls or jelly. Teenagers and young children who want to experiment with topping selections are my target market. Therefore, the $6.99 and $7.99 prices are reasonable.
6. What keeps your product special from other bubble teas? Â
What keeps my product special from other bubble tea is that you can customize the toppings that you can put on your milk tea.
7. How do you collect and analyze feedback from customers to improve your products and services continually?
I can collect feedback from customers by setting up a survey that will give them a 20% discount on their next purchase.
They can just scan a QR code from the store or from the receipt, answer the survey then a code will be generated that they can use to redeem their 20% discount.
8. Regarding the key resources, I think you missed the important thing like food safety. This is required to have especially when your business is about food or anything that people will eat or drink.
Food safety certification will be required to everyone who will be working at the business.
9. With your marketing strategy, instead of 5 P’s you just make 4 P’s. P for people is missing in there.
“People” can be a useful addition to the standard marketing mix, which focuses on knowing and meeting the demands of my target audience. The four Ps of the marketing mix are product, price, place, and promotion.
10. In your behavior, I noticed that you stated there that you do customization such as adding toppings. Would tapioca pearls be the same price with the gelatin? Kindly clarify because in your price you only input the additional price for the gelatin. How about the tapioca pearls?
Yes it will have the same price as the tapioca pearls, jelly, gelatin or pudding.
11. With regards to your pricing, How do you plan to stand out and establish a unique identity in the competitive tea market despite having almost similar pricing structure to existing businesses?
In a crowded tea market, creating a distinctive brand and making an impression demands more than price alone. Here are a few strategies I could use to set the business apart.
Emphasis on High-Quality Ingredients: I can differentiate my business from rivals who could place a higher priority on cost-cutting strategies by using of high-quality tea leaves, natural sweeteners, and premium toppings.
Customizable toppings: Offering a diverse range of toppings can attract customers looking for something new and exciting. In doing so, it can help create a distinct identity for the business.
Personalized Customer Experience: Providing exceptional customer service and creating a welcoming atmosphere can foster customer loyalty. Giving options for customization can improve the entire experience. Some examples of customization include changing the amount of sweetness, lessening the ice or making personalized recommendations.
Community Engagement: I can establish a strong client base and effectively integrate my brand into the local community by actively participating in local events, sponsoring community activities, and forming partnerships with nearby businesses.
12. How will your bubble tea shop ensure the ethical sourcing of its ingredients, particularly the tapioca pearls? Do you already have an idea where to get it?
Running a responsible and sustainable bubble tea shop does need ensuring the ethical sourcing of materials like tea and tapioca pearls. Here’s how I would go about doing this:
Research for Providers: Identify providers who place a high value on ethical sourcing by conducting in-depth research. Seeking suppliers who are open about their labor policies, environmental effect, and sourcing strategies is part of this.
Certifications and Standards: Prioritize vendors who meet globally accepted standards for ethical sourcing or who possess certifications. Accreditations like Rainforest Alliance, Fair Trade, or organic certifications signify a dedication to ethical labor methods, ecological sustainability, and superior quality.
Direct Sourcing: Build direct ties with cooperatives or producers of tea and tapioca pearls whenever possible. Direct sourcing promotes partnerships based on accountability and trust while enabling increased transparency in the supply chain.
13. You stated in your Geographic marketing segmentation, that milk tea is consumed worldwide. Do you have data or evidence to support this claim?
This information is taken from Gitnux Market Data Report 2024.
“Bubble tea has become a popular beverage around the world, with its global market estimated to be valued at $2.4 billion in 2019 and projected to reach $3.49 billion by 2027. The Asia Pacific region dominated the bubble tea market with 57.4% of total share in 2019, while China had 64,600 bubble tea shops that same year. Fruit flavor was the most popular type of bubble tea accounting for 38.2% of overall market share in 2021 and is expected to be the fastest-growing segment between 2021-2027 as well.
In terms of consumption statistics, 40% of US customers are aged 18-24 years old; 70% choose tapioca pearls as their topping; 25000 stores are predicted by 2022; 58.9 % European respondents drink it once a month or more often; 880 annual growth rate is forecasted for Australia over 5 years period (2021–2026); 62 % female consumers from USA prefer this beverage ; 205 million USD size will have US Bubble Tea Market till 2027 ; 17 percent increase happened during 2018 -2019 among UK’s store numbers , 9 .5 percent held Yi Dian Dian brand on Chinese markets since 2018 and 73 per cent Canadians consume it occasionally or several times weekly . Chatime opened 2500 stores across 38 countries since 2005.”
These facts demonstrate how much people enjoy drinking bubble teas all over the globe.
<Lindner, J (2023), “The Most Surprising Bubble Tea Consumption Statistics And Trends in 2024”, https://gitnux.org/bubble-tea-consumption-statistics/, Accessed on 12 March 2024>
14. How much should I share as an investor? The initial investment required for this firm is $30,000, which will cover the costs of ingredients, rental, staff, and other startup expenses. You can contribute 50% of the initial cash or the full $30,000.  15.  What would be our profit-sharing arrangements? Investors will get the chance to acquire a 20% share annually in a business that is expanding quickly and has the potential to seize a significant portion of the expanding milk tea industry.  16.  What is your plan to ensure operational efficiency and cost control are in place? Implementing operational efficiency and cost management methods is critical to the success of a milk tea business. Here’s a detailed plan to guarantee that these elements are in place:
Standardized Processes – Develop standardized recipes, portion sizes, and preparation methods to ensure consistency and minimize waste. Provide training to staff members to ensure they follow these processes consistently.
Inventory Management – Implement an inventory management system to track ingredient usage, monitor stock levels, and prevent overstocking or shortages. Regularly review inventory reports to identify trends and adjust purchasing accordingly.
Menu Development – Continuously evaluate the menu to identify high-margin items and eliminate low-performing ones. Focus on offering a streamlined selection of popular milk tea flavors and add-ons to reduce complexity and minimize waste.
Labor Enhancement –Â Schedule staff efficiently based on demand fluctuations to minimize labor costs while ensuring adequate coverage during peak hours. Cross-train employees to perform multiple roles and tasks, allowing for flexibility in staffing.
Quality Control – Establish quality control procedures to maintain the consistency and freshness of products. Monitor product quality through regular taste tests, visual inspections, and customer feedback.
17. Â Are you considering adding pastries in your menu? At the moment, I do not have plans of adding pastries on the menu, but there is a possibility that it can be added in the future depending on the demand.
18. Â Will you consider adding gluten-free, dairy free and peanut free products on the menu? Absolutely, including gluten-free, dairy-free, and peanut-free alternatives on a milk tea business’s menu can be an excellent approach to cater to consumers with dietary limitations or preferences.
19. Â What payment methods do you accept? Cash, Debit and Credit Cards.
